Medigap Insurance Plans - Medicare Supplemental Plans M and N

Medigap insurance plans have been designed to supplement the coverage for the original portions of the Medicare program, Parts A and B. Each plan also has its own set of benefits.

Some are more extensive than others. For example, in addition to covering the majority of the co-payments and coinsurance for services that are covered in Part A and Part B, it also covers the cost of the first three pints of blood per benefit period and coinsurance for Medicare Preventive Care Part B. Supplemental Plan A features the fewest additional benefits and as a result, is also the most inexpensive.

As the plan letters progress through the alphabet, more benefits are added and the cost is increased. Currently there are 12 Medigap insurance plans. They are labeled Plan A through Plan L. In June 2010, there will be some dramatic changes.

Two benefits will be discontinued and two will be added to all plans. They are currently only featured in some of the supplemental plan options. Four existing plans will be discontinued and two will be added. Plans E, H, J and I will be eliminated due to duplication of benefits with other plans, now that the Preventive Care and At-Home Recovery benefits are being removed.

Medigap insurance plans N and M are the latest additions to the Medicare supplemental options. Plan N will be similar to Plan D. This is not to be confused with Medicare Part D that helps cover prescription drug costs.

Plan D is one of the mid-priced plans with coverage for the majority of the coinsurance and co-payments that are needed for Parts A and B, as well as the first three pints of blood per benefit period. The additional coverage areas include coinsurance coverage for skilled nursing facility care, and emergency care when traveling abroad.

New Medigap insurance plans will include hospice care as well. Plan M is the second addition and will also provide coverage that is similar to Plan D. The difference between the two is the amount of co-payments and deductibles that will still be required.

These plans will have lower premiums than some of the existing plans. The changes will dramatically affect the structure of the Medicare program. Going forward there will be two groups of Medicare beneficiaries. In one group will be those who have the original plans and benefits. In the other will be the new policyholders.