Three trends to keep in mind

2020 Medicare Supplement plans are  available at         Should you be on Medicare plan or soon to be, it’s important to recognize this and watch out for certain trends that you can encounter in the world of Medicare and Medicare insurance.

For the first time since 1992, the standard Medicare supplement plans are changing. The changes came into effect on June 1, 2010, although some impact is already being seen as companies begin to release their tariffs for the new “modernized” plans. The two new and on coming plans, plan M and plan N, promises some impact on the world of Medicare supplement plans.

They are cheaper and lesser alternatives to a few of the more expensive plans. Keep in mind, however, that with the lower costs, the benefits will be proportionately reduced. If you accept one of these plans, you would need to qualify medically (for most companies) if you want to upgrade your plan later.

The other two main factors that keep an eye on as regards the new modernized plans are the complete cancellation of Plan J and the modification of Plan G (Part B excess fees are 100% – just like Plan F).

Online Quoting / Service Access As in many other business areas, the Medicare insurance world goes online in record numbers, to the benefit of consumers, businesses and agents. What this means to you is that you can sign up for a plan in an informed and educated manner, without ever speaking to a person, and in any case, without ever meeting anyone face to face.

You certainly do not have to do business in this way or enroll for a plan this way, but this option is more available than ever and has many, many benefits. Firstly, you can make comparison of Medicare Supplement policies in minutes and save time to ensure you obtain the best available plan.

  • Rate Instability: In some ways, this is speculation; though, it is rational and very predictable. In the next year or two, Medigap plans will experience some big rate increases. Such increases are likely to extend to companies and governments. The reasons are probably:
  • Increased number of Medicare Advantage members leaving these plans and enrolling in Medicare supplementary plans (on average, this group is not as healthy and the additional plans were due to their involuntary loss of their Advantage policies)
  • Increasing number of employers Group insured members who leave these plans to enroll in Medicare Supplement plans (this group is also, on average, not as good in health and perhaps older than Medicare Supplement policy holders, but due to the increasing number of companies putting a stop to health benefits, these individuals have to look elsewhere)
  • Economic Climate Factors (similar to numerous other companies that have responded somehow to the dynamic economic climate, it is practical that even the supplement firms will do the same).

Medicare supplements come with costs and can also exclude unhealthy persons. However, they generally provide the broadest access to health care.