Extended Medigap Deadline Looming.

Were you dropped from your Medicare HMO this year?

Any seniors losing their managed-care coverage had until Jan. 1 to switch to another managed-care plan without taking a health exam. If you did nothing, you were automatically re-enrolled in traditional Medicare.

Now, the seniors who have just returned to traditional Medicare have another option. You can buy private Medigap insurance to pay for some of the items that Medicare doesn't cover.

If you want this extra coverage, buy it during the current open-enrollment period. From now through March 4, federal law requires insurers to sell you a policy at normal rates, regardless of your age and health.

After March 4, insurers in most states can turn you down, charge you more or limit your coverage, if you're in poor health. (A number of states give you extra time to buy, so be sure to check your local rules. Note that Medigap coverage isn't automatic. You have to contact an insurance company and apply.)

Some 934,000 people got notices last year that they'd be dropped from their Medicare HMO. That's on top of 327,000 who heard in 1999 and 407,000 in 1998.

A Medicare HMO offers all the coverage you get from traditional Medicare. It also serves as a Medigap plan, covering many payments that Medicare doesn't. And it offers extra benefits; such as preventive care and limited coverage for prescription drugs.

You pay less for HMOs than you would for traditional Medicare plus a private Medigap plan. Recently, premiums have been rising and extra benefits declining. Still, they're a good deal, financially.

There are 10 standard Medigap plans, mandated by federal law and known by their alphabet letters, A through J. Each plan offers a different mix of benefits. The most popular federal plan, the C plan, covers your up-front deductibles for and hospital bills, plus a few other items. Plans H and I include a modest benefit for prescription drugs.