A Brief Discussion On Medigap Insurance And New Changes

By Author: William Richards
Total Articles: 366
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The origin of the health care insurance plans can be traced back in 1694 when it was first proposed by Hugh the Elder Chamberlen from the Peter Chamberlen family. The first form of health insurance plans was available in the market as the accidental insurance plans during the late 19th century. The first accidental insurance plans were somewhat like the modern day disability insurance plans. And until the start of the 20th century there were no other health care insurance plans other than these accidental insurance available in the market. Therefore the accident insurance plans can easily be considered as the first form of health care insurance available in the market. However after the regulation of the law during the beginning of the 20th century this type of insurance was categorized under the disability insurance.

Medigap or Medicare supplement policies were standardized by the Centers of Medicare and Medicare services in 1992. Medigap insurances were also available prior to that. But the seniors possessing the plans prior to 1992 are still under non-standard plans. But these plans are no longer eligible for the new ...
... plans. It is to be reiterated that these policies are private company organized and there is no part of government behind these plans. That is why the policies may vary from sate to state but the law do not make differed from each other drastically as we can see that the insurance premiums are different from each other among different Medicare plans. There are total 12 plans under medigap insurance plans having array of benefits of Medicare supplement.

Apart from 12 standard plans named A to L there are two new plans M and N are to be introduced by June 2010. Plan M of medigap insurance plan's cost sharing feature is used in this method of policy and it also makes the premium of the policy maker very low than before. According to the experts the Medigap insurance plan M is going to reduce insurance premium rate by 15% in relation to the existing plan F, while the Medigap plan N is going to reduce it by around 30% in relation to plan F. The plan M does not cover the plan B. This plan splits the Medicare part A deductible with the insurance company 50/50. In plan N the cost sharing feature is also used and with it we can see here the co- payments method to provide 30% lower premiums than the plan F of Medigap plan.

To say other changes in the Medigap insurance plan we have to say that all the Medicare supplement care policies are now going to have a hospice care benefits moreover with the prior. Medigap insurance plan G will now cover the excess charges 100% as in present it covers only 80% excess charges. On the other hand the Medigap insurance plans E, H, I, and J will no longer exist, beginning from June 2010. And also the Preventive care and at home recovery will be excluded from the Medicare Supplement Plans.

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