2010 Modernized Medicare Supplement Plans (Effective June. 2010)
* The Medicare Prescription Drug Improvement and Modernization Act of 2003 (MMA) included language to encourage the National Association of Insurance Commissioners (NAIC) to modernize the Medigap market.
* The NAIC decided to review the Medigap plans to determine if there were changes that could be made to the benefit packages in response to changes in the marketplace since standardization (1990).
Changes to Benefits:
* At-Home Recovery Benefit eliminated
* Preventive Care Benefit eliminated
* A 100% Part B Excess Charges Benefit replaces the 80% benefit for Plan G
* A new Hospice Benefit as part of Basic Core was created
New Hospice Benefit:
Medicare offers a hospice benefit with a drug co-pay and inpatient respite care coinsurance. The 2010 modernized plans will now cover the expenses below as a core benefit:
* $5 co-pay for outpatient prescription drugs for pain and symptom management
* 5% of the Medicare-approved amount for inpatient respite care (short-term care given by another caregiver so the usual caregiver can rest). Does not include room and board
New Plan Options:
* Plan M – offers increased cost-sharing (50% of the Part A Deductible, no coverage for Part B Deductible)
* Plan N – offers new co-pay structure ($20 co-pay for physician visits, $50 co-pay for ER) and no coverage for Part B Deductible
Summary:
* Overall = Reduces number of plans from 14 to 11.
* Plans E, H, I, and J are no longer offered due to duplicity as a result of benefit changes
* Eliminates outdated and underutilized benefits
* Adds new plans that feature higher cost sharing and lower anticipated premiums for policyholders.
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