IBC eBulletin - MedigapSecurity is approved

We are pleased to announce that our new MedigapSecurity line of Medicare Supplement Group and Individual products has been approved by the Pennsylvania Insurance Department.

The newly approved products, which will go into effect June 1, 2010, are:

In April, we informed you that because of new benefit coverage requirements required by the Medicare Improvements for Patients and Providers Act (MIPPA), we filed for a new Medicare Supplement product line that would take effect on June 1, 2010. We also told you that Security 65^® is no longer available for new member coverage beginning June 1, 2010 and later.

MedigapSecurity has all the benefits of Security 65, plus an enhanced Medicare Part A hospice cost-sharing benefit that is now required by MIPPA. Please view the Outline of Coverage. This new hospice benefit covers the following costs that are currently the member’s responsibility under Security 65:

• copayments up to $5.00 for each prescription drug (while in hospice care);
• coinsurance of 5% of the Medicare-approved amount for inpatient respite care.

A few key points to remember:

• Members currently enrolled in Security 65 may remain in their current plan, which will not be affected by the benefit changes.
• A new MedigapSecurity enrollment form for Group enrollees is available for enrolling members in the new products as well as a MedigapSecurity Replacement Notice.
• Medicare Advantage products, including Keystone 65 HMO, Personal Choice 65^SM PPO and our prescription drug plans (PDPs) are not affected by these changes.

For Groups:

• MedigapSecurity applicants will be enrolled in a new MedigapSecurity group, not in existing Security 65 group numbers. Group benefit administrators for Small Group Community and Community rated customers must sign the applicable Rate Sheet in order to have the MedigapSecurity groups set up.
• Any eligible group member looking to enroll in a Medicare Supplement plan after May 15, 2010, may enroll in MedigapSecurity plans A, B, and C, effective June 1, 2010, using the new MedigapSecurity enrollment form and by completing the new MedigapSecurity Replacement Notice, if applicable.
• MedigapSecurity Small Group Community and Community rated group premiums will be the same as current Security 65 premiums for equivalent products. As always, we will notify you of any rate changes as they occur.
• Broker commissions for MedigapSecurity group products will apply according to the current Security 65 schedule through December 2010.

For Individuals:

• Please refer to www.site65.com for specifics on Individual MedigapSecurity products.

What You Need to Do:

• Inform your group customers of these changes and obtain a signed MedigapSecurity Rate Sheet for the selected group product for your Small Group Community and Community rated customers. Email the signed form, along with completed member enrollment forms and MedigapSecurity Replacement Notices, to mktgops@ibx.com, copying your IBC account executive, or fax the information to Marketing Operations at 215-238-7905 by June 4, 2010.
• Inform your group customers not to submit Security 65 enrollments through our Group Portal for June 1, 2010 effective dates and beyond. The Group Portal is now accepting MedigapSecurity enrollments for established MedigapSecurity groups.

For information on how to set up MedigapSecurity groups for Cost Plus and Experience rated customers, or if you have any questions, please contact your Independence Blue Cross account executive.

As always, please know that we appreciate your business and look forward to providing your customers and their members with access to quality health care.

Click here to view the MedigapSecurity Group member enrollment form.

Click here to view the Small Group Community rates for new groups.

Click here to view the Employer Group and Union Community rates.

Click here to view the Group Outline of Coverage.

Click here to view the MedigapSecurity Replacement Notice.