Medigap Insurance Plans - 2010 Benefit Additions and Deletions

Although Medigap insurance plans have been around for decades, they were not standardized until 1992. As of June 1, 2010, those plans are undergoing significant changes. There are two benefits that will no longer be offered.

The Preventive Care benefit covered procedures such as cardiovascular, colorectal cancer and mammogram screenings, flu shots, bone mass measurements and glaucoma tests. The At-Home Recovery benefit will also be removed. This covered skilled nursing and a variety of therapy services such as physical, occupational and speech for those senior citizens who are homebound and under a physician’s care.

As a result of these two benefits being eliminated, Medigap insurance plans E, H, J, and I are also going to be discontinued. They are the only plans that included these options. With their removal, they would now duplicate other plans.

These benefits have been deemed unnecessary. There are also benefits that are being added to all newly issued supplemental plans. The Hospice Care benefit pays nearly all of the costs related to doctor’s services and nursing care, medical equipment and supplies, short-term hospital care, specific types of therapy, and counseling. Care is provided in a hospice facility, hospital or nursing home.

Co-insurance coverage is also being added to all new plans. Co-insurance is the amount an individual may be required to pay after plan deductibles. When referring to the original Medigap insurance plans, it is a percentage of the approved amount.

In many cases, it is equal to 20%. In some plans, the percentage will vary, based on how much you have spent. A deductible is the amount an individual will need to pay before the Medicare benefits will begin. The deductible is re-set each benefit period and may vary from one year to the next. Current beneficiaries of policies and benefits that are being eliminated will be able to keep them.

However, as of June 1, 2010, they will no longer be available for purchase. This also means that the structure of Medicare will change somewhat. Existing policyholders will be in one group and those who purchase the new Medigap insurance plans will be in another.

Some people may choose to change plans, as the pricing may also be affected as time goes by. This is the first major change to the supplemental plans since they have been standardized. There are Medicare specialists that will be able to help senior citizens decide which policies will best suit their needs.