Obamacare News Blog

2010 Medigap Modernization:  6 Facts You Must Know

Medigap Modernization has been a hot topic in the media lately, and for good reason. Medigap, which is another name for Medicare supplemental insurance, is changing on June 1st, 2010 and the coming changes have potential for significant impact on seniors who are currently in the market for Medigap insurance.

There are 6 key facts that you must know now in order to make the best decision regarding your current or future Medigap policy.

Fact 1:  “Medigap Modernization” is the nickname for the changes that Medigap will undergo starting on June 1st, 2010.

Though the changes that will affect consumers go into affect this year, the modernization process started much earlier.

As a requirement of the Medicare Prescription Drug Improvement and Modernization Act of 2003 (MMA), the National Association of Insurance Commissioners (NAIC) assembled a task force to improve Medigap plans and benefits.  This task force included state regulators, consumer advocates, industry representatives, CMS representatives and other interested parties.  They developed a modernization proposal that was approved by the NAIC in 2007.

Then on July 15, 2008, Congress enacted a law called the Medicare Improvements for Patients and Providers Act of 2008 (MIPPA).  MIPPA included direction to the Secretary of Health and Human Services to implement modernization proposal developed by the NAIC-led task force.  That modernization proposal, referred to in the MIPPA law as the NAIC Medigap Model Regulations, includes all the changes to Medigap that will take place on June 1, 2010.

Fact 2:  There will be fewer total plans available for sale.

There are currently 12 senior medical insurance plans for sale and these are named for the letters of the alphabet A through After June 1st there will be 10 plans.  By clicking on the link below, you can see a PDF table of the plans available for sale through May 31st, 2010.

Medigap-Table.pdf

Starting on June 1st, plans E, H, I and J will no longer be offered for sale.  The PDF table below summarizes the new plans and their benefits available starting in June.

Medigap-June-2010.pdf

Fact 3:  Two new Medigap plans will be sold.

Though four plans will be eliminated (see Fact 2 above), two new ones will be available for sale.  Plans A through N will be available as Medigap plans.  The PDF table above shows a summary of all the plans and their benefits, including these two new offerings.

Fact 4: Some Medigap benefits will change.

Some changes will affect all policies, while others will affect only one or a few Medigap policies.  The best way to understand how the plans will change is to print out the PDF tables (above) and compare them side by side.  That way you can see how each plan has changed or stayed the same.  For example, you’ll see that the May 2010 Medigap Plan D covers >“At Home Recovery expenses while the June 2010 Medigap Plan B does not.  If you are interested in reading about some of the nitty-gritty details of the changes, see our article titled .

Fact 5:  Existing Medigap policyholders may keep their old policies.

This means that if you currently have one of the plans that is slated to be discontinued and you like it, you can keep it. This also means that if you see a plan that is currently offered for sale that will be discontinued after June 1st, you should buy it now.

Fact 6:  There is no single Medigap plan that is the best for everyone.

According to the Medicare Rights Center, the most popular Medigap plans are currently C and F, because they cover major benefits and tend to be less expensive than some of the other plans.  A quick comparison of the pre and post-June 1st Medigap charts (above) will confirm that these two plans will stay fundamentally the same.
Ready to sign up today? Go to the Medigap Overview Page.

However, it is extremely important to examine all of the plans while keeping in mind which benefits are most important to you and which you can do without.  As with most decisions, the decision about which Medigap plan is right for you is all about trade-offs.  What can you give up in order to have more of what you value most? 

Next steps to choosing the right Medigap plan.

To obtain quotes on any Medigap plan, visit our quote engine and enter your zip code in the box at the top of the page.  (All other information is optional.) Then click on the button on the bottom of the page.  Once you do, you will be given a list of quotes on Medigap policies available in your area.  From there you can shop based on price, provider reputation, and customer reviews.

In short, Medigap Modernization simply refers to the changes that the Federally standardized Medigap policies will undergo starting on June 1st, 2010.  Again, if you are a researcher at heart and are interested in reading more about these changes, see our page called “Medigap Changes Coming June 1st.” 
If you would prefer to have personalized help in sorting through these changes and selecting the Medigap plan that is right for you, contact a licensed Medicoverage agent.  We are here to help.