In 2006, Medicare beneficiaries can enroll in Medicare Part D.  Part D will make Medicare Supplement (also known as Medigap) policies with RX coverage obsolete because the coverage through Part D will be more cost effective.  Medicare Supplement Plans H & I pay 50% of RX costs after a $250 deductible up to just $1,250.  Medicare Supplement Plan J pays 50% after a $250 deductible up to $3,000.  Medicare Supplement rates for these plans are typically at least $300 per month.  In January, 2006, Part D will cost just $35 per month.  Depending on where a person lives a person can buy Plan F or G for as little as $80 or as much as $150 for someone age 65.  Combining a Medicare Supplement Plan F or a Medicare Supplement Plan G for $80 to $150 per month with Medicare Part D for $35 is a better value than having a Medigap Plan H, I or J for about $300 per month.  Consider the Part D benefits:

You are responsible for the first $250.   Then you would then be responsible for 25% of the next $2,000 ($500), Medicare Part D pays 75% ($1,500).  Next, you are responsible to pay for 100% of the next $2,850 of RX costs.  After that you pay just 5% of remaining costs. 

For a Medicare recipient, purchasing Medigap Plan F or G with Medicare Part D is a better option than having Medigap Plan H, I or J.