Modifications to Medigap plans

Due to the Medigap modernization law of 2010, which comes took effect on June 1st 2010, there were some changes to the standard Medicare supplement plans in force. Such changes did not affect people who have been included in a Medigap Plan before that date, and will only apply to people who sign up on or after June 1st.  Get a quote at

Medigap Plans E, H, I, and J were eliminated by Medicare, but those currently logged into these plans can stay with them without changes. The two benefits that are also eliminated include home health insurance and retirement benefits, which were under-utilized by Medicare beneficiaries. Those who have been registered in plans before 1 June 2010 who have any of these benefits are allowed to continue using them. Other important modifications saw the addition of the hospice benefit to every Medigap plans added to it, as this was a major benefit added to every Medigap plan.

The new modernized Medicare supplement plans also include two new plan letters, which should be very attractive to those currently in a Medicare Advantage plan. These two plans include Medigap Supplement Plan M and Medigap Supplement Plan N. As a result of the rising cost of the Advantage Plan rewards and the growing number of physicians who choose not to participate, Medigap plans M and N offer different cost-sharing features, which will help provide lower premiums for both against plans like Medicare Supplement Plan F or Plan G.

Medicare’s new Plan M provides unique co-op options that are particularly appealing to relatively healthy Medicare beneficiaries. Plan M offers 50% of the Medicare Part A Excess, which was $ 1100 per service period in 2010. For example, if you visit the hospital with Medigap Plan M, it means you have to cover for a part of the cost of $ 1,100 i.e. excess $ 550 as current rules continue to apply to Medicare Part A excess. If you travel 60 days or more and need to return within the calendar year, you will need to make this payment again.

Under the Medicare Supplement Plan M, the beneficiary is also expected to pay for the Medicare Part B deductible, which as at 2010 is set at $155. There is no co-pay medical office for this franchise and the 20% co-insurance is paid for by the plan.

Another new Supplement plan N was introduced on 1 June. 2010. This plan also offers cost-sharing options for the beneficiary very much like Medicare Supplement Plan M, but with Plan N they are in the form of co-pay.

Anytime you visit a health center and you have Medicare Supplement Plan N, invariably you must pay $ 50. For doctor visit anytime, it attracts a co-payment of up to $ 20 per visit after you receive the Medicare Part B annual deductible ($ 155 in 2010). These co-payments allow Medigap Plan N premiums to be lower than currently available Medicare Supplement plans, thus making it an excellent choice for those leaving a Medicare Advantage plan (whether the plan leaves your area or you are in the registration phase).