Changes will be coming to Medicare Supplements in 2010. Amidst all the chatter over changing the health insurance system and ever-rising budget deficits, Medicare beneficiaries will see changes starting in 2010. Medicare Supplements, which are offered by private insurance companies, but closely regulated by Medicare, will see the following changes.
1. Plans E, H, I and J will be eliminated.
2. Plan G will be modified. Home Care benefit will be removed and excess charges covered at 100%.
3. Lower cost Plans M and N will be offered. Co-pays will be included in these new plans.
4. Companies offering Plan A must offer Plan C and Plan F.
5. A hospice benefit will be included in all new plans being introduced.
Plans M and N will both use cost-sharing (co-pays and deductibles) which will allow them to have lower monthly premiums. With Plan M, the insured will be responsible for 50% of the Part A (hospital) deductible. With Plan N, the insured will have a $20 doctor’s office co-pay and a $50 emergency room co-pay. Both plans project to have premiums 15-30% lower per month than current Plan F premiums.
All companies will be allowed to reset rates with the introduction of new plans and the addition of the hospice benefit. Rumor has it that companies with high premiums that are no longer competitive will be able to reset their pricing (meaning lower their prices), thus creating more competition between supplement companies.
Will the Medicare Supplement market be wide open in 2010? Perhaps. And with less money going to Medicare Advantage companies, the entire Medicare market could be very interesting in 2010 and 2011 - for seniors and for insurance agents.
No comments:
Post a Comment