September 2007

ANNOUNCEMENT

Deductible Amount for Medigap High Deductible Options F & J

For Calendar Year 2008

SUMMARY: There are two Medicare supplemental (Medigap) plans that can be sold with a high deductible option – Plans F and J. This notice announces that, effective January 1, 2008, the annual deductible amount for those two plans is $1,900. The deductible amount for the high deductible version of plans F and J represents the annual out-of-pocket expenses (excluding premiums) that a beneficiary who chooses one of these policies must pay before the policy begins paying benefits. We update the annual deductible amount for Medigap plans F and J each year, after release of the August CPI-U figures by the Bureau of Labor Statistics, which generally occurs in mid-September.

CALCULATION OF THE DEDUCTIBLE: The deductible for plans F and J is determined in accordance with section 1882(p)(11)(C)(i) of the Social Security Act (the Act).  That provision prescribed a deductible of $1500 for 1998 and 1999, and directed that the amount increase each subsequent year by the percent increase in the Consumer Price Index for all urban consumers (CPI-U) (all items, U.S. city average).  For 2007, the deductible amount was $1,860. For 2008, the deductible amount is increased by the percent increase in the CPI-U for the 12-month period ending August 2007. As reported by the Bureau of Labor Statistics, Department of Labor, the CPI-U index was 203.9 in August 2006 and 207.917 in August 2007, resulting in a 1.97 percent increase from the 2007 deductible amount of $1,860. A 1.97 percent increase in $1,860.00 is $1,896.64.  Section 1882(p)(11)(C)(ii) of the Act stipulates that this amount be rounded to the nearest multiple of $10. After rounding $1,896.64 to the nearest $10 multiple, the 2008 deductible for the Medigap high deductible options is $1,900.

For further contact information select the download "CY 2008 F&J – Deductible Amount for Medigap High Deductible Options" listed below.

Downloads
CY 2008 F&J Deductible Amount for Medigap High Deductible Options (PDF, 25KB) CY 2007 F&J - Deductible Amount for Medigap High Deductible Options (PDF, 11KB) CY 2006 F&J - Deductible Amount for Medigap High Deductible Options (PDF, 32KB) CY 2005 F&J - Deductible Amount for Medigap High Deductible Options (PDF, 34KB) CY 2004 F&J - Deductible Amount for Medigap High Deductible Options (PDF, 80KB) CY 2003 F&J - Deductible Amount for Medigap High Deductible Options (PDF, 84KB)
Related Links Inside CMS
Archives - Medigap Guidance and Model Notices
Related Links Outside CMS
National Association of Insurance Commissioners/State Insurance Departments

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