December 2009
Medicare Supplement Changes for 2010
Medicare Supplements are scheduled for changes in 2010. The Medicare Improvements for Patients and Providers Act (MIPPA) was passed in an effort to streamline and modernize benefits and benefit plans, reduce beneficiary confusion and increase beneficiary choices. BlueCross BlueShield of Tennessee Medicare Supplement plans will reflect the changes outlined below.
The Act requires the following changes for policies beginning June 1, 2010:
- Elimination of the limited At-Home Recovery benefit (which was offered only in Plans D, G, I, and J) in favor of a new Hospice benefit to be added as a Core benefit to every plan
- Elimination of the underutilized Preventive Care Benefit (which was offered in Plans E and J) in recognition of the fact that the Medicare program has changed over the years to include significantly more preventive care benefits
- Replacement of the 80% Part B Excess Benefit in Plan G to a 100% coverage benefit
Elimination of unnecessary and duplicative plans:
- Elimination of Plans H, I, and J (which contained prescription drug benefits prior to the Medicare Modernization Act)
- Elimination of Plan E (as it becomes identical to Plan D, once the Preventive Care Benefit and the At-Home Recovery benefit are changed)
Addition of new benefit plans options with higher cost-sharing and lower premiums:
- Creation of new Plan M – with increased cost-sharing (50% coverage of the Part A Deductible, and no coverage for the Part B Deductible)
- Creation of new Plan N – with a new copay structure ($10 copay for physician visits; $50 copay on Emergency Room), and no coverage for the Part B Deductible
The NAIC plan also includes transition standards to permit companies to offer existing policy or certificate holders the opportunity to exchange their policy for a new policy. Guidance to the states is also being developed on New or Innovative Benefits. In addition to these changes, MIPPA requires that all organizations offering Medigap Plan A also offer Plan C or Plan F on a guarantee issue basis.
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