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Medicare Supplement Plan J | Medigap Plan J | Coverage & Details
Overview of Medicare Supplement Plan J
Medicare Supplement Plan J is one of the four Medicare Supplement Plans that was eliminated on June 1st, 2010 due to the Medicare Modernization Act. The Centers for Medicare and Medicaid Services (CMS) constantly monitors Medicare Supplement Plans, current economic situations, and maintains the needs of senior citizens.
The four Medigap plans that were emiminated are:
- Medicare Supplement Plan E
- Medicare Supplement Plan H
- Medicare Supplement Plan I
- Medicare Supplement Plan J
Recently, Medicare has upgraded some of the benefits that people receive by just having original Medicare. With this upgrade in Medicare coverage, some of the "old" Medicare Supplement Plans were eliminated due to the duplication of benefits. For example, Medicare now covers more preventive care benefits than they did previously. Medicare gives it's beneficiaries an annual wellness exam, as well as a comprehensive health check when first going on Medicare. Medicare also helps pay more for other preventive care procedures, like mammograms' etc.
With an increase in these types of standard Medicare coverage, it does not make sense to have one of the "old" Medicare supplement plans, because you will simply be paying for additional benefits on your Medicare Supplement Policy that you get for free by just having Medicare. It is a good idea to consider purchasing a more current "Modernized" Medicare Supplement Plan that will cover the gaps left by Medicare, but one that will not duplicate benefits already provided as standard coverage.
Below is a side-by-side comparison of similar, but current (Modernized) Medicare Supplement Plans that are comparable to the "old" Medicare Supplement Plan J.
|Benefits||Plan J||Plan F||Plan G||Plan N|
|Basic Benefits||+ Co-pays|
|Skilled Nursing Facility Co-insurance|
|Part A Deductible|
|Part B Deductible|
|Part B Excess Charges (100%)|
|Foreign Travel Emergency|
|At-Home Recovery (Was $1,600 Annual Max)|
|Preventive Care (Was $120 Annual Max)|
Why Should I Change From Plan J?
There are many reasons why it would NOT be a good idea to keep Medigap Plan J if you currently have it. First of all, if you have Plan J, you are paying for additional benefits that are now likely already provided by Medicare. The second point is not so obvious, but is extremely important to understand.
As you should know, insurance companies are in business to make money. When they sell a policy, they make money. When someone has a claim, they lose money. Their primary objective is to reduce the total amount of claims to increase profits (keeping more revenue and spending less on claims).
Most Medicare Supplement Companies budget and account for their Medicare Supplement Plans individually in regards to the claims experienced on a particular policy, revenue generated by a specific policy, etc. When a company has lots of clients on a "Plan J" for example, that means they have lots of revenue coming in on on that particular policy.
When a Medicare Supplement Plan is eliminated, that means there are no more "new" clients purchasing that policy, therefore there is no new, or additional revenue coming in for that particular policy. Furthermore, the insurance company still has to pay the claims for their clients on that plan ("Plan J" in our example). Over time, the people on that policy (Supplement Plan J) will continue to grow older and older, likely causing more and more claims the insurance company has to pay.
When an insurance company is paying more and more claims without any additional revenue coming in, their only choice is to raise premiums for the policyholders; that means you! If you coninue to stay on a plan that has been eliminated, you will likely see very significant rate increases that will eventually cost you hundreds, if not thousands of dollars. This can all be avoided by purchasing a new Modernized Medicare Supplement Plan.
If you currently have a Medicare Supplement Plan J, or any insurance policy that has been eliminated, it is a smart idea to consider looking into your options and purchasing a current Medicare Supplement Policy that is still on the market today and has a great future forecast. If you would like to learn more about new policies, please complete the Quote Request form on our website, or call one of our knowledgeable Medicare Advisors who are standing by to assist you. Our toll-free phone number is: (877) 308-4794.
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