Just like anything else, Medicare Supplement insurance in constantly evolving, sometimes for the better, sometimes for the worse. If you are on Medicare or going on it shortly, it is important to realize this and keep your eye on certain trends that you may encounter in the world of Medicare and Medicare insurance.
New Modernized Plans For the first time since 1992, the standardized Medicare Supplement plans are changing. The changes take effect on June 1, 2010, although some effects are already being seen, as companies are beginning to release their rates for the new “modernized” plans. The two new plans, M and N, promise to have some effect on the Medicare Supplement marketplace. They are lower-benefit, lower-cost alternatives to some of the costlier plans.
Keep in mind, though, that with the lower costs, benefits are also reduced at a proportional amount, and if you take one of these plans, you would have to qualify medically (with most companies) if you later want to upgrade your plan. The other two major factors to keep an eye with the new modernized plans are the elimination of Plan J altogether and the changing of Plan G (Part B Excess charges go to 100% – just like with Plan F).
Online Quoting/Service Access As in many other areas of business, the Medicare insurance world is going online in record numbers, but consumers, companies and agents. What this means for you now, is that you can sign up for a plan, in a knowledgeable, educated way, without ever speaking to a person and definitely, without ever meeting someone face to face. You certainly do not have to do business this way, or sign up for a plan this way, but this option, more than ever, is available to you and has many, many benefits. First and foremost, you can compare Medicare Supplement plans in a matter of minutes, saving you time and making sure you get the best plan available.
Rate Instability This is, in some ways, speculation; however, it is logical and very predictable for Medicare Advantage. In the next year or two years, Medicare Supplement plans will take some large rate increases. These increases will likely extend across companies and states. The reasons why this is likely are: a. Increased number of Medicare Advantage members leaving those plans and enrolling in Medicare Supplement plans (this group is, on average, not in as good of health and the supplement plans have/had to take them due to them involuntarily losing their Advantage plans) b.
Increased number of employer group insurance members leaving those plans and enrolling in Medicare Supplement plans (this group is also, on average, not in as good of health and older than typical Medicare Supplement policyholders; however, due to the increasing numbers of corporations ending retiree health benefits, these people have had to look elsewhere) c. Economic/Financial Climate Factors (just like the many other industries who have reacted in some way to the changing economic climate, it is logical that the supplement companies will also).