Throughout the year, I've been writing about changes in Medicare funding for health plans, plans terminating coverage for 2011, and health reform.  As we approach annual open enrollment you need to be aware that Medicare has changed when plans will accept your application for 2011.  All this will have an impact starting on October 1st, 2010. It is also important to note that many Private Fee for Service Plans (PFFS) will be sending termination notices out this year and directing their members to find other coverage. 

Guide to Health Reform (Part 2): The Affordable Care Act passed by Congress and signed by President Obama this year contains some important benefits for Medicare recipients. If you reach the coverage gap this year and enter the Part D “donut hole”, you will receive a one-time $250 rebate check if you are not already receiving Medicare Extra Help.  This rebate is the first step toward closing the Medicare prescription drug coverage gap.

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.