Compare Health Insurance Medigap Plans

In the article “Ask Kim: The ABCs of the new Medigap plans,” Kimberly Lankford of Kiplinger’s Money Power explains the recent Medigap changes.  Two new Medicare supplement plans were introduced on June 1, Medigap plans M and N.  Plans E, H, I, and J will no longer be offered as Medigap plans.  Anyone who wants to keep their old plan, even those that have been discontinued, is able to do so with no changes.  It might be a good idea to compare health insurance options though, because the new plans offer lower premiums in exchange for some cost-sharing.

The new plans are both similar to Medigap’s most popular policy, Plan F.  The difference with Plan M is that it only covers half of the Medicare Part A deductible of $1,100 and does not cover any of the $155 Part B deductible.  While Plan N does cover the full Part A deductible, it has the added expense of co-pays for doctors visits ($20) and emergency room treatment ($50).  Medicare Part B “excess charges” are not covered by either Plan M or N.

More insurers like Golden Rule Health Insurance are offering Plan N than Plan M.  The cost is about 30% less than Plan F.  While you’ll be paying less for your policy, take into account the additional co-pays, Part B deductible, and any Part B “excess charges” you may have to pay out of pocket with Plan N before switching.  It might still work out to your benefit to change plans.  People eligible for the first time for Medicare Part B within 6 months will automatically qualify for Medigap plans.  Once that enrollment period ends, you could be disqualified for health conditions.  There are insurers offering Plans M and N regardless of health conditions though.

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