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2010 Medicare Modernization Act

The 2010 Medicare Modernization Act will begin to change numerous things for Medicare Supplement Insurance beginning June 1st 2010.  With plans being edited, eliminated, and added we believe it is crucial to keep up with how this will impact our clients.  Below we have listed the major changes to the Medicare supplement insurance plans as well as providing you a chart to review.  Please feel free to contact seniorservices@morganwhite.com with any questions you may have.

Overview of Plan Changes

  • Reduces overall plans from 14 to 11
  • Plans E, H, I, and J are eliminated (these plans were put into effect in 1992 with the other standardized plans but due to under utilization and Part D there were not as much use for these plans)
  • At-home recovery and preventive care benefits are eliminated under the Modernized plans (these benefits were primarily taken out due to under utilization)
  • On plan G the Part B excess charges increased from 80% to 100% (this plan is now extremely close to the plan F)
  • A hospice benefit was added to the basic (core) benefits
  • Plan M and Plan N were created through the Medicare Modernization Act, and were designed with higher cost-sharing at lower premiums.  A few carriers will have similar health questions to a Medicare Advantage on these plans.

Medigap Plan Benefits for plans sold on or after June 1, 2010

Medigap Plan Benefits A B C D F* G K L M** N**
Basic Benefits:
Hospitalization & Preventative Care
x x x x x x x x x x
Basic Benefits:
All Other
x x x x x x 50% 75% x x***
Part A Deductible   x x x x x 50% 75% 50% x
Skilled Nursing Coinsurance     x x x x 50% 75% x x
Part B Deductible     x   x          
Part B Excess Charges Benefits         x x        
Foreign Travel Emergency     x x x x     x x
Out-of-Pocket Annual Limit             x x