Beginning in June 2010, Medicare supplement premiums are set to drop when they are “modernized” as part of the Medigap Modernization Act. This will present the opportunity for health insurance companies to create new blocks of business with lower premiums.
The modernization of Medicare supplement plans will affect only plans created after June and will be based on a new group of enrollees with no history of claims against the insurer. One company, UnitedHealth, will be offering specific premium information beginning in March.
Seniors who will be turning 65 in the next few months can enroll in an existing Medicare plan and switch to a modernized plan in June, thanks to the six month open enrollment period.