Underwriting is the process assessing risk of issuing insurance. Undewriters evaluate applications,
Medigap Plan J Has Been Eliminated
As of June 1, 2010, Plan J is no longer available as an option for Medicare supplement insurance coverage. Current Plan J enrollees will not lose their coverage, but may be subject to significant rate increases.
Medicare Supplement Plan J was designed to offer “full” coverage, covering all of the gaps in Original Medicare, as well as Preventive Care and At-Home Recovery services. At the time, these two services were not covered by Original Medicare, so this plan was extremely popular as beneficiaries technically would pay nothing out-of-pocket. Plan J is essentially a Plan F with Preventive Care and At-Home Recovery.
As an effort to modernize their offerings, Preventive Care and At-Home Recovery were removed from Plan J due to lack of use. This makes Plan J exactly identical to Plan F.
What Should Current Plan J Policyholders Do?
Policyholders who are currently enrolled in Plan J will not be kicked off of their coverage. They can keep their Plan J coverage, but will have to stay with the same carrier that they currently have. As a result, Plan J policyholders will most likely be subject to high rate increases. Because of this, it may be in their best interest to switch their coverage to the identical Plan F.