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What Are The Benefit Differences In The New Medigap Policies?

As of June 1, 2010 Medigap supplemental health insurance underwent some changes that affected benefits. Before changes were made in June of 2010, plans included plan A through L. As of June 1, two new plans were added and four previous plans were eliminated and will no longer be available.

Basic Benefit Changes

One of the differences in the new Medigap policies is as of June 1; all Medigap plans that are sold must offer basic benefits as well as pay part or all of hospice coinsurance for respite care and medications.

Plan M

The newly added Plan M is similar to plan F, but only pays 50% of the Part A Medicare deductible and none of Part B Medicare deductible. This new plan also does not cover excess charges of doctor fees.

New Plan N

Plan N is basically the same as Plan M except that it does cover the Part A deductible completely and it charges a $20 copay for doctor visits and $50 copay for emergency room care.

Lower Premiums

One of the major differences in the new Medigap policies is the premium costs, which are 25 to 35 percent less than Medigap Plan F.

Benefits No Longer Available

Another one of the differences in the new Medigap policies is the coverage of at-home recovery care and preventive care that was previously included in many Medigap plans. As of June 1, 2010, these benefits are no longer available.

Differences in the New Medigap Policies Does Not Affect Those With Previous Plans

Those who had purchased a plan before the changes went into effect are not affected by these changes and they may keep their Medigap plan as long as they like. However, comparing costs of previous Medigap policies with new policy prices could offer consumers substantial savings.