Beginning June 1st, 2010, two new Medigap Plans will be available (Plan M and Plan N.)

These plans will include a copay and a coinsurance similar to a Medicare Advantage Plan, which should help reduce the monthly Medigap premium in some cases.  We can expect to start seeing these plans entering the market starting October 1st, 2010 as a replacement for Private Fee for Service Plans (PFFS). 

Last year Medicare change the rules for Medicare Advantage PFFS Plan will require each plan to for a network. It is not likely Insurance companies will invest in the creation of networks, especially if they can now offer a MediGap Insurance plan that can effectively compete with Medicare Advantage Plans.

Cut waste, fraud and abuse.

Guide to Health Reform (Part 1): Each year the Center for Medicare and Medicaid Services (CMS) announces planned payment increases or decreases to contracting Medicare Advantage plans.  In 2009, Medicare announced a 4.8% decrease in payment that resulted in several hundred health insurance companies canceling their contracts, raising premiums and increasing copayments - - forcing millions of seniors to find new coverage. Democrats have claimed all along that privately administrated Medicare Advantage plans are wasteful and have made them a prime target for major cuts. Many seniors across the country have already felt the impact of targeted cuts to Medicare.  Health Reform promises to further reduce payments to Medicare Advantage Plans, Doctors and Hospitals.  This will be accomplished by reducing the dollar amount of each "fee-for-service" and supplement it with a payment program based on "quality".  These cuts will undoubtably have an impact on the premiums and cost sharing in existing Medicare Advantage and Medicare Supplement policies.

2009's Biggest Loser is Blue Cross with a Loss of $149 Million and Fallon Coming in Second with Losses Nearing $29 Million.

Tufts, Harvard and Health New England continued to show profitability over the past two years and also managed to increase membership as well.  While a few plans continue to hide their revenue results this year - - they are still required to file their executive compensation plans with the Division of Insurance (DOI).  A few plans had flat or declining salaries in the wake of their 2009 revenue annoucnements.  A few managed to scale back bonuses while giving out modest salary increases. We were not able to obtain salaries for Blue Cross and Fallon. After 2008's salary increases at Blue Cross and their incredible amount of financial losses last year - - it will be interesting to see how their executives fare.

Medicare Sherpa has scanned each document and placed a copy in our discussion forum. You are welcome to download and view each exhibit.