2010 “Modernized” Medicare Supplement – Questions

Medicare Supplement Insurance ImageHere are few quick Questions and Answers regarding the new 2010 “modernized” medicare supplemental plans released June 1, 2010.

Did these changes come as a result of the recently passed Healthcare Reform Bill?

Contrary to what many believe, these changes are NOT a result of the recently passed Healthcare Reform Bill. In fact, the changes DO come as a result of HR 6331, known as the Medicare Improvements for Patients and Providers Act of 2008 (MIPPA).

When are these changes effective?
The 2010 Medicare Supplement changes will be effective on any policy sold with an effective of June 1, 2010 or later.

Why were plans E, H, I and J eliminated?
Plan E was eliminated because the new Plan D would contain exactly the same benefits. Plans H, I and J were eliminated because with the other dropped benefits these plans would also duplicate other plans available.

What will happen if my plan is “dropped”?
Any plan that was purchased prior to June 1, 2010 will remain in-force. If you currently have plans E, H, I, or J, you can keep your policy and continue to receive all benefits in your plan as long as you continue to pay premiums. You DO NOT have to buy a new policy.

How competitive will the new plans M & N be?
Many people expect them to be very competitive. It stands to reason, as Co-Pays and Co-Insurance will always drop the premium rates.

What is the new hospice benefit?
All plans will now include the Hospice Benefit as part of the “Core Benefits.” Medicare provides coverage for inpatient respite care up to 5 days less a co-payment amount of 5% of the daily benefit. The new Hospice benefit will pick up this 5% co-pay.

Why was the At-Home Recovery benefit dropped?
It was determined that the benefit was confusing and difficult to understand and administer.

Why was Preventive Care dropped from all plans?
Because Medicare Part B has changed to cover many more preventive benefits, effectively rendering this benefit redundant.

Need more details?

Please refer to our 2010 “Modernized” Medicare Supplement Summary