Part 2: Part D has Made Medicare Supplement Plan J a Hot Product

Your client asks you for the best Medicare Supplement plan available.  “Why, all my clients purchase Medicare Supplement Plan F” you respond.  “The client pays a premium and can go to virtually any provider and have no out-of-pocket expenses.”

Well, think again.  Plan J is becoming an attractive plan in a number of states offering better benefits and comparable rates to Plan F.  In the past, Plan J was seldom used because the cost of prescription drugs drove the premiums to unaffordable levels.  With the introduction of the Prescription Drug Plan, these benefits are removed from Plan J and now lower premiums are being introduced by some carriers.

Plan F has gaps in coverage including At-Home Recovery and Preventive Care.  If your client wants the best, why not offer the best?  Consider Medicare Supplement Plan J.  It covers everything a Plan F provides plus it meets the need for At-Home Recovery and Preventive Care.  Here’s how the extra benefits work.

At-Home Recovery is not covered by Medicare.  It includes home care certified by your doctor, for personal care during recovery from an injury or sickness for which Medicare approved a Home Health Care Treatment Plan.  Plan J pays the actual charges up to $40 a visit (not to exceed seven visits per week) with a maximum payout of $1,600.  That translates into 40 days of At-Home Recovery benefits.

Preventive Care is also not covered by Medicare after the first year of enrollment in Medicare.  Preventive Care includes annual physical and preventive tests and services administered or ordered by a doctor when not covered by Medicare.  Plan J pays the first $120 each calendar year.

Just like Plan F, your client is free to choose virtually any doctor and Part B excess charges are covered at 100%.

So, if Plan J covers everything of a Plan F and provides At-Home Recovery and Preventive Care benefits, it goes to figure that Plan J is more expensive, right? 

Well, think again. After removal of prescription drug benefits, Plan J was re-priced as the claims risk exposure for highly inflationary prescription drugs making Plan J rates very appealing.  As an agent, you don’t have to worry about Plan J suffering from an aging block of business.  Further, Plan J is not exposed to guarantee issue requirements for HMO or Medicare Advantage plan disenrollments.  All risks entering the block are underwritten with the exception of those first-time enrollees (generally those turning age 65) eligible for open enrollment.

Some carriers have entered the market with competitive Plan J rates.  Call Senior Market Sales, Inc. at 1-800-786-5566 for more information.

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