Medigap plans are standardized into 12 distinct plans initially labeled A through L. Medigap is not sponsored by the US government and is a privately owned company. It is offered through private businesses and provides various combinations of benefits.
Immediately after May 31st, 2010, Medigap will add 2 new plans called M and N. The plans E, H, I and J will not be offered anymore by insurers. If you currently use a E, H, I or J policy it will be automatically renewed without any changes in your coverage.
You might want to consider the new M and N plans because the coverage provides some extra cost-sharing in exchange for reduced premiums.
The M and N plans are close to the popular Medigap plan F. However, the M policy only covers 50% of the $1,100 deductible required for Medicare Part A. The Part B deductible of $155 is not covered by either M or N plans.
Furthermore, the new plan M does not cover any of Part B’s “excessive charges”. The excessive charges help cover extra costs that your physician charges over what Medicare will accept.
In contrast, plan N will completely cover the Part A $1,100 deductible. There is a $20 co-payment for appointments at the doctor’s office. For an hospital emergency room visit you will a $50 co-payment. Some private insurers sell plan N more than plan M. Plan N typically costs up to 35% less than the former plan F according to eHealthMedicare.com
If you’re planning on changing plans, compare the premium savings to the possible out-of-pocket co-payments and deductibles. Even if plan N is less expensive than the former plan F, you will be required to pay Part B’s $155 co-payment.
Determine the total amount for all your co-payments and calculate the maximum number of times that you may visit the emergency room and your physician’s office. Will you still be spending less with plan N? Be aware that Part B’s “excessive charges” are covered by plan F but are not covered under plans M and N. This is important if your physicians tend to charge more than what Medicare will pay for.
If this is your 1st time signing up for for Medicare Part B, you can qualify for any of the plans no matter what is the state of your health. However, if you do not sign up within the open-enrollment period, you can be rejected due to a health condition. Some insurers will still sell plan M and N regardless of your health, particularly if you previously had E, H, I or J Medigap plans.
To Learn More About the Various Medigap Plans Plus In-Depth Information About Medicare and Medigap, Visit the Medicare Supplement Guide Today at http://medicaresupplementalinsurances.com/
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