Medigap Plans – New Plans in June 2010

There have not been many substantial changes in Medigap plans since their standardization in 1992. Despite this fact, June 2010 will introduce two new plans to the public. Known as Medigap Plan M and Medigap Plan N, these are different from any options offered right now. This means you must learn about what coverage they offer and how they can work in your benefit of you enroll in either one.

As with other Medigap plans, Plan N and M are offered by private insurance companies nationwide. Plan M uses cost-sharing as a way to keep your monthly premiums lower. This translates to mean that the Medicare Part A deductible, in 2010, will be shared equally by the insurance company and the insured. Plan M does not cover the Medicare Part B deductible, but there are no further co-pays once the financial amount of Part B is met. The most popular Medigap plan is Plan F.

Medigap Plan N also offers lower premiums as an alternative to other current Supplement plans. Similarly to Plan M, Plan N uses the idea of cost-sharing to lower monthly premiums. Instead of sharing the cost of the deductible, however, co-pays are used to reduce the cost of premiums.

When these plans are introduced in June 2010, those currently enrolled in existing Medigap plans in addition to Medicare Advantage plan holders will be very interested to learn more about Plans M and N. Fortunately, you now have an idea of what the differences are between these new plans and what you may want to select for yourself when the time comes. Be sure to look into other plans as well to ensure you get what is best for you.