The 2010 Modernized Plans
Effective June 1, 2010, consumers on Medicare will choose from these 11 Medigap plans: A, B, C, D, F, high-deductible F, G, K, L, M and N.
Changes from the 1990 standardized plans include:
- Eliminated Plans E, H, I and J
- Removed at-home recovery and preventive care benefits from all plans
- Increased Part B excess charges coverage from 80% to 100%
- Added a hospice benefit to the basic (core) benefits
- Created Plans M and N featuring higher cost-sharing at lower premiums
Medicare Supplement Plan N
With a Plan N supplement, insureds will have to pay a few small out-of-pocket expenses and their Medigap plan would pick up the rest. Those expenses are:
- Hospital Admittance Co-pay - $50
- Medicare Part B Deductible - $155 per calendar year
- Co-pay for Doctor's visits - Up to $20 per visit
Beyond these expenses, the insured’s plan will pick up the difference for any Medicare covered expense. Like any Medicare Supplement, there are no networks or a managed care system like a PPO, HMO, or an employer benefit health plan. Their network is the entire United States.
Medicare Supplement Plan M
Medigap Plan M is another plan available starting June 1st. 2010. This plan also has a lower premium, due to the cost-sharing expenses that the beneficiary must pay. Medigap Plan M is not offered in all states, nor is it offered by every insurance company.
Medigap Plan N (Available June 1, 2010 in most states) also offers cost-sharing benefits for a lower premium than a standard Medigap Plan. Those on a Medigap Plan M would have out-of-pocket expenses of:
- Part A Deductible - 50% of $1100 (In 2010)
- Part B Deductible - $155 annual per calendar year
After that Medigap Plan M covers everything. Therefore those who are healthy should find this plan a great option, as well as those who are seeking to return to Original Medicare and opt-out of their Medicare Advantage Plans.
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