Upcoming Changes
Medicare is going through some major changes right now, and Medigap policies will be affected. Starting January 1, 2006, insurance companies can no longer sell Medigap H, I, and J plans which include prescription drug coverage. This is because Medicare will be offering prescription drug coverage through the new Part D prescription drug program. You will still be able to buy plans H, I, and J – just without the prescription drug coverage component.
So what do you do if you already have prescription drug coverage through Medigap? You should have received instructions from your Medigap insurance company detailing your options. You can:
- Enroll in a Medicare Part D plan and keep your existing Medigap plan with the prescription drug component removed.
- Enroll in a Medicare Part D plan and buy a different Medigap plan that does not include drug coverage.
- Enroll in a Medicare Advantage plan that has prescription drug coverage.
- Do nothing – keep your existing Medigap plan with its prescription drug coverage.
Please keep in mind that if you decide to keep your Medigap plan as is, you may have to pay more if you change your mind later and enroll in Medicare Part D after May 15, 2006.
A Final Word
If you need help deciding whether Medigap is right for you, a great resource is your State Health Insurance Assistance Program, or SHIP. Your SHIP has Medicare counselors that can provide one-on-one assistance with your questions and concerns.
