If you have a Medicare Supplement Plan J you may find price increases are making the cost too high?
What’s going on with the rates?
With Medicare Supplement Plan J the answer is pretty simple. The plan was discontinued by Medicare in 2010. However, if you had the plan you could choose to keep it. But overtime the lack of new people coming into the plan is resulting in higher prices for you now. Here’s what is happening and why you should consider a different Medicare supplement plan. Most people switch to a Plan F or a Plan G to lower their Medicare plan costs.
In 2011, Plan J was discontinued. It included a Home Recovery benefit which was dropped for underuse. And the addition of Home Hospice to all plans made that benefit in Plan J no longer special. So with no new people coming into the plan, the pool of people who have Plan J is decreasing and they are getting older. That leads to higher claims and fewer people to cover the costs. So the insurance company raises rates to reflect the claims experience.
Plan F is the option most people choose when moving from a Plan J. It is the most comprehensive coverage and provides essentially the same benefits of Plan J but usually at a lower cost. You will have to answer health questions in order to switch plans. But, if you live in Oregon or California, change plans the month before or during your birthday month so you won’t have to answer underwriting questions – In Missouri, change during your anniversary month (the month when you first purchased your plan) to skip underwriting questions.
Make sure you compare Medicare plans from several insurance companies for your Medicare Plan F because rates vary widely, even though the benefits are the same no matter which company you buy from.