Medicare Supplement Coverage - Plans M and N

Friday, April 2, 2010
On June 1, 2010, the new Modernized Medicare Supplement Plans will begin to be sold.  Since Medicare supplement plans were standardized in 1992 there has not been a great deal of change to the plans.  Plans K and L were added but do not seem to have made a significant difference in the market.  Many believe Plans M and N which will be added as a Part of the Modernized Medicare Supplement Plans will make a difference. Particularly, Medicare Supplement Plan N. Let's look at the highlights of the two plans.
The Medicare supplement coverage under Plan M will feature 50% coverage of the Part A (Hospitalization) deductible.  In 2010 the Part A deductible is $1,100.  Therefore, the policy would cover $550 and the insured would pay other $550. Also, this Medicare supplement policy will not cover the Part B (Medical) deductible which is $155 in 2010.  
The second medigap policy being introduced in 2010 is Plan N.  This Medicare supplement plan also features cost sharing.  On this Medigap plan, the Part A deductible is fully covered.  The cost sharing is found on the Part B side.  The $155 Part B deductible is not covered and therefore paid for by the policyholder.  In addition, the policyholder pays up to a $20 copay for office visits and up to a $50 copay for emergency room visits.  
With the introduction of these two new plans that feature cost sharing, many companies believe that Plan M will cost about 15% less than a Plan F (the most common plan sold) and Plan N will cost about 30% less than Plan F.  For those considering Medicare supplement health insurance who have been on a Medicare Advantage Plan, these two new plans should be attractive options.
Aaron Holmes 4/2/2010