Medicare Supplements, which are offered by private insurance companies, but closely regulated by Medicare, will see the following changes.
1. Plans E, H, I and J will be eliminated.
2. Plan G will be modified. Home Care benefit will be removed and excess charges covered at 100%.
3. Lower cost Plans M and N will be offered. Co-pays will be included in these new plans.
4. Companies offering Plan A must offer Plan C and Plan F.
5. A hospice benefit will be included in all new plans being introduced.
All companies will be allowed to reset rates with the introduction of new plans and the addition of the hospice benefit. Companies with high premiums that are no longer competitive will be able to reset their pricing creating more competition between supplement companies. This should make for an interesting Medicare Supplement market in 2010.
