Effective June 1, 2010, there are a number of changes that will impact anyone eligible for Medicare. The Medicare Improvements for Patients and Providers Act of 2008 (MIPPA)takes effect on June 1, 2010. Anytime our government uses “improvement” in the title of legislation, be careful!

First, a number of Medicare Supplement plans are being eliminated. These are E,H,I,J and High Deductible J. It also introduces two new plans, M and N.

All Medicare Supplement will be required to add a Hospice benefit to the Basic Benefits package. It also eliminates the requirement that plan D and G include the At-Home-Recovery coverage.

The major companies offering Medicare Supplement plans will be revamping their portfolios, eliminating some plans and introducing others. 

Current holders of Medicare Supplement Plans will, in most cases, be able to change plans without worrying about specific enrollment periods. Existing members will be sent letters offering them the option to change from existing plans to the MIPPA-enhanced plans. These plans will include the hospice benefit. Current plan holders will be able to retain their existing plans if they choose to. For a number of the major companies writing Medicare Supplement Plans, the rates on exiting plans will not increase as a result of MIPPA changes. The MIPPA law does not require existing members to take any action to change their Medicare Supplement plan.  The hospice benefit can be added at anytime, there is no deadline.

The most important concern created by this new legislation is the opportunity for creating fear and confusion on the part of Medicare eligible individuals. There will no doubt be scams intended to convince seniors that they must act and that they must make changes, often more expensive, in order to comply with this new law. The message for anyone who is approached in this manner is, “don’t be rushed or fooled”. Get in contact with someone you trust and evaluate your options, you may be as well off doing nothing as making changes. 

We are happy to answer any and all questions, please contact us.