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.

One-fourth of Americans do not have dental insurance, according to a U.S. News & World Report article.  In “1 in 4 Americans Under 65 Lacks Dental Insurance,” this survey from 2008 shows that race, employment, and even education all play a roll in whether Americans have dental coverage.  Compare health insurance with dental coverage and many people think dental is something they can cut back on to save money.  Unfortunately this leads to dental problems and other health issues since dental health is directly related to overall health.

This U.S. National Center for Health Statistics report was released last week and showed that having dental insurance is the main indicator of whether or not you receive regular dental care.  Eighty-percent of people who have employer sponsored health care had dental coverage included in that care.  Unfortunately, only thirty percent of those who had directly purchased their own insurance from a company like Golden Rule health insurance had included dental coverage.

Black Americans were more likely to have dental coverage than white Americans, Asian Americans, or Hispanic Americans.  People with less than a high school education only had dental insurance in forty percent of the cases studied.  Americans are more likely to have dental insurance as their income gets higher, along with most other types of insurance.  Taking care of your teeth, mouth, and gums is very important to your overall good health.  Search for dental insurance coverage to take care of you and your family.

In “California’s higher hospital costs add to health insurance hikes,” Bobby Caina Calvan and Phillip Reese of The Sacramento Bee try to compare health insurance costs and the reasons they keep rising.  While the general public and even the government can be quick to blame insurance companies for everything, the authors’ research showed that hospitals collected $25 billion from health insurance companies from September 2008 to October 2009.  Since 2005, that number increased by over one-third.  A lot of the charges to insurance companies, which flow directly to consumers, come from expenses like hospital expansions, new technology, and services for the uninsured.  It was found that some hospitals actually charged more than double what the service provided actually cost.

Insurers like Golden Rule Health Insurance are essentially held hostage by the charges from hospitals yet take most of the blame for increasing premiums to consumers.  Hospitals in California are required to report the amount they spend on caring for insured patients, the amount they charge insurance companies, and the amount that they actually collect.  The hospitals reported a 53% increase from the amount they spent on care to the amount they charged.  Unfortunately, hospitals are in their own predicament with costs which is why they have to pass them along somewhere.  Government mandates to make hospital improvements, provide care to uninsured Americans and illegal aliens, and reimbursements for Medicare and Medi-Cal that are less than cost force that money to be made up for somewhere.  Unfortunately for consumers, these cost increases for insurance companies usually lead to increased premiums.