Medicare has passed and will put into effect the below described changes to Medicare supplements June 1, 2010:

Plans E, H, I, and J will no longer exist. These plans will not be sold by any insurance company after June 1, 2010. However, if you are currently enrolled in one of the aforementioned plans, then you can be “grandfathered” in to keep the policy. Do keep in mind that some insurance companies will let you convert your coverage to one of the new “modernized” Medicare supplement policies. This may well be a good opportunity as there may be higher renewal premiums for E, H, I, and J in the near future due to the lack of premiums from new recipients of that coverage. If you wait to convert beyond the allotted time period, then you may be required to go through medical underwriting and thus risk decline.

Medicare supplement Plans M and N will be introduced. Plans M and N will have lower monthly premiums in exchange for higher out of pocket payments for medical expenses. For example, Plans M and N will not cover the Part B deductible or Part B excess charges. Plan M will cover half of the Part A deductible, while Plan N will cover the entire Part A deductible. Plan N also will have situations in which co-pays will be required. Plans K, L, M and N may function as suitable low cost alternatives to Medicare Advantage Plans (minus the prescription drug coverage.)

New Medicare supplement policies will issue with lower rates. An advantage associated with this modernization should be lower monthly rates for those who choose a conversion plan who are healthy (enough to pass medical underwriting qualifications.) As new plans are introduced they often offer lower rates as there are no claims associated with them. New risk pools equal lower rates.

In contrast to all the above listed changes, Plans A, B, C, D, F, G, K and L will have nearly the same benefits as before with Plan F now being the most comprehensive.

For more information, do be sure to do your own research and contact a Medicare supplement agent whom you can trust.

Want to find out more about Medicare supplement insurance, then visit Richard Cantu’s site on how to choose the best medigap policy for your needs.