Articles
April 25, 2010
WHAT IS HAPPENING TO MEDICARE SUPPLEMENTS??
Many positive changes are coming to all Medicare Supplement plans effective in June, 2010. Generally speaking, the new modernized plans may be less expensive than existing plans, but will require underwriting approval.
You will hear from other insurance providers regarding these upcoming changes; however, please remember that I want to continue to be your agent and will be able to handle any issue/concerns you may have.
Some plans will be discontinued, and new ones will be added. Also, new providers are coming to Texas, which will result in more affordable premiums.
NOTHING IS REQUIRED OF YOU UNLESS YOU WANT TO MAKE A CHANGE. You can continue to keep the program you currently have if you wish, even if it no longer is available for new applicants. Following are highlights of the Medicare Supplement plan changes:
Coverage for the “F” Plan will be identical to today’s “F” Plan with minor improvements to hospice care.
The “J” Plan will no longer be available for sale after June 1, 2010. If you have the “J” Plan, all provisions will be grandfathered. Anticipated cost is the only reason to change from the J Plan.
Anyone who now has the “J” Plan may want to consider changing to the “F” Plan. It will cost less at the time of change, and future price increases will be smaller. You can change anytime after a June 1, 2010 effective date.
ONE CONDITION: You must pass underwriting. (No automatic approval).
If you cannot pass underwriting, you might want to consider the “N” Plan described below.
The new “N” Plan is expected to be issued without Underwriting on a guaranteed basis. This plan requires some co-pays, but has the main benefits of a supplement at a lower premium.
Following is a comparison of Plan “F” and “N”. Plan N will be 20-30% less expensive than Plan F, and will be on a guaranteed basis, which means no medical questions required.All other provisions are the same for both plans.
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Plan F
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Plan N
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Pays Part A deductible
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Pays Part A deductible
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Pays $155 Part B deductible
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Does not pay Part B deductible
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Pays all doctor visits
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Pays all but $20 deductible doctor visit
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Pays emergency room visit
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Pays all but $50 deductible per visit
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One new change to Part D (Prescription Drug) is that in 2010, if you reach the donut hole, you will receive a $250 check from Medicare to partially offset the cost. The donut hole will be gradually decreased and finally eliminated by 2020.
Please contact me at (512) 773-8412 for an appointment to discuss any questions you may have. Also, feel free to share this important information with your friends.
