Since 1992, when Medicare Supplement plans were first standardized, they have mostly remained the same. However, beginning June 1, 2010, two new Medicare Supplement plans, M and N, will be launched, along with other modifications to Medicare Supplements. This article will discuss how the two most recent Medigap plans, Medigap Plan M and Medigap Plan N, function and the coverage they will give.
Medicare Supplement Plans M and N are the newest standardized Medigap plans available in South Carolina and around the country from private insurers. These two new plans provide a lower-priced option to current Medicare Supplements, and many believe they will quickly gain momentum as highly popular alternatives in the Medicare Supplement market, especially in light of the forthcoming significant changes to the Medicare Advantage program.
Plan M – Medigap
Plan M, one of two new standardized plans, utilizes cost-sharing to make monthly premiums affordable. This implies that consumers on M would divide the Medicare Part A deductible ($1068 in 2009) 50/50 with the insurance carrier in return for somewhat cheaper monthly costs. Half of the cost is covered by the insurance company, and the other half is your responsibility. The Medicare Supplemental Plans Plan M does not cover the Medicare Part B deductible; however, once the Part B deductible is met, there are no co-pays for medical visits. Most experts anticipate that this plan’s premiums will be around 15% less than the current F (most popular plan) prices.
N – Medigap Plan
Plan N, one of two new standardized plans, similarly utilizes cost-sharing to lower monthly costs. However, unlike M, it does not employ the deductible-sharing technique to help lower premium expenses. Instead, it uses co-pays to help reduce premium costs. Co-pays for medical appointments are set at $20 and emergency department visits are set at $50. Currently, it is anticipated that this co-pay scheme will take effect upon the completion of the Medicare Part B deductible. This plan should have rates that are 30% less than the Medigap Plan F prices.
These two plans, M and N, may be especially appealing to people leaving the Medicare Advantage program, either by necessity (plan cancellation) or by choice, since Medicare Advantage rates are likely to increase as a result of impending changes, whereas premiums for these two plans will decrease (from the original Medicare Supplement plan premiums). Most anticipate that there will be little, if any, difference between the M and N rates and the new Medicare Advantage premiums.
When these plans become available in June 2010, consumers enrolled in Medicare Advantage programs, as well as those enrolled in existing Medicare Supplement plans, should carefully weigh the benefits of the two new plans against their present coverage.
Medicare-Supplement-Comparison.com is the main, unbiased source for information about Medicare Supplement Plans M and N, as well as all other Medicare Supplement plans. As a nationwide resource, we can answer any questions you may have regarding the new coverage choices and give tailored pricing quotes based on your age and zip area.
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