By Mark Fine

A multitude of changes start June 1 pertaining to Medicare Supplement Plans. Just to refresh your memory, Medicare Supplement policies (also known as Medigap Plans) fill in gaps in Original Medicare coverage (Plans A and B) such as co-pays and deductibles for hospitalization, doctor visits and other medical services. These Supplement Plans may cost more than Medicare Advantage Plans.

However, after paying the plan premium, there are few extra out-of-pocket expenses. This basically helps with managing costs.  You have the freedom to choose any doctor who treats Medicare beneficiaries.  A big plus for Medicare Supplements is that they offer National coverage so beneficiaries can use benefits anywhere in the U S.  If beneficiaries move, their coverage moves with them.  Supplements have guaranteed renewability, automatically renewing year to year as long as premiums are paid when due. Most Supplement plans offer Foreign travel coverage for emergency services.

The new Modernized Medicare Plans will eliminate plans E, H, I, J and add plans M and N.  If you currently have E, H, I, and J, you will be able to keep these plans and they are guaranteed renewable as long as you pay the premiums. Starting June 1, 2010 all plans will include Hospice Care (if doctor certifies you have six months or less to live) as part of Core Benefits. Respite care is part of the Hospice benefit.

Plan N requires no Medicare Part A deductible ($1100) but you must pay up to $20 for each doctor office visit and up to $50 for an Emergency Room visit.  (Waived if admitted as inpatient.)

Plan M requires 50 percent ($550) of Part A deductible ($1,100) but no co-pays.

Those persons who enter the donut hole (between $2,830 and $4,550 drug expense) with regards to prescription drugs (Part D) in 2010 will receive a $250 refund sent directly from Health and Human Services. Certain income restrictions will apply.

Medicare Supplements represent one choice within Medicare. Other insurance such as Medicare Advantage, Original Medicare and Long-Term Care will be discussed in future articles. These plans contain many different variables and must be fitted to each individual person’s situation. It is highly recommended that you work with a knowledgeable senior insurance advisor licensed in your state.

Mark Fine is the owner of Your Senior Insurance Solutions - 770-831-8851, or markfine@yourseniorinsurance.com. Mark is also available for speaking engagements.