The Changes to Medicare Supplement Insurance

Since it was standardized in 1992, Medicare Supplement insurance has not changed. However, for the first time since this standardization, the plans changed in June 1, 2010. These changes will greatly affect anyone who signs up for a plan after that date and will probably also affect anyone who currently has a Medicare supplement.

In the past, the Medicare Supplement plans ranged from Plan A to Plan J. Each had its own particular advantages. This will not change – they will continue to be standardized; however, the “modernized” plans will have new benefits. In addition, some of the plans that were available in the past are no longer available, and some new ones that were never available before have been added.

If you become 65 after June 2010, or if you want to replace your current plan, you must be aware of the changes and their implications for standardization. The changes made are as follows:

First and foremost, some of the plans were canceled – these are E, H, I and J. After June 1, 2010, you cannot sign up for any of these plans. Even existing policyholders who have one of these plans will not be forced to drop their plans or separate them. However, most analysts agree that removing these plans from the options will have a negative impact on future interest rate hikes with these plans.

Second, a hospice benefit was included in the “benefits” component of all remaining plans. Regardless of which plan you purchase, this benefit will be included. Enroll @

Next, the “Part B additional cost” benefit was increased to 100% on Plan G. The benefit was earlier 80% on plan G. By bringing it to 100%, it complies with plan F and other plans that cover this benefit.

Even “At Home Recovery” and “Preventive Care” were completely removed from any plans that contained them. These benefits were deemed unnecessary after careful examination due to lack of use.

The changes to the standard Medicare Supplement plans have no retroactive effect on your cover if you now have a Medicare Supplement plan; However, most financial advisors believe that since the old plans are a “closed” business block, rates will be affected accordingly. Put simply, if there are no younger people on the “old” plans, everyone on these plans will age without younger people compensating for this aging, which will probably lead to more claims and higher rates.

Whether you’re new to Medicare or have an existing plan, it’s important to keep up with these changes and how they affect you. Some people may need to reassess their current plan before 6/1 to see if it makes sense to have the same coverage. Insurance companies had to resubmit their tariffs for approval, and once these have been approved by state insurance departments, these “modernized” plans will be available in all states.

Medigap policies, which have the same benefits, are sold at astonishingly different premium rates, according to leading independent analyst and ratings analyst, White Ratings, Inc. For example, while insurers need to offer the standardized benefits for plan F, insurers do not control how much they charge for the plan.