Many seniors with Original Medicare choose to enroll in a Medicare Supplement Plan to help pay for some of the out-of-pocket expenses not covered by Medicare. Like most states, there are 10 standardized Medigap plans for Medicare beneficiaries to choose from. For many years, one of the most popular Medicare Supplement plan is Medicare Supplement Plan F. In 2016, according to the American Association of Medicare Supplement Insurance (AAMSI), 60% of beneficiaries chose Medicare Supplement Plan F than any other plan due to its comprehensive coverage on deductibles, copayments, and coinsurance. With Plan F, most beneficiaries pay nothing for doctors’ visits, labs, medical procedures, hospital stays and more. Along with Medicare Supplement Plan F, Plan C will also be discontinued in 2020.
So to answer the question whether Medicare Supplement Plan F and Plan C is going away, the answer is – Yes!
Why is Medicare Supplement Plan F and Plan C going away?
Legislation has passed the Medicare Access and CHIP Reauthorization Act (MACRA) in 2015 to prohibit the sale (on or after January 1, 2020) of Medigap plans that pays for Part B deductible to NEW Medicare beneficiaries. Since Medicare Supplement Plan F and Plan C cover copays, deductibles, and coinsurance, the government is concerned since there aren’t many out-of-pockets costs for individuals with these plans, patients will be seeking medical attention more often than needed, hence, causing Medicare to spend more money.
Beginning 2020, all Medicare beneficiaries will be subject to a Part B deductible.
What if I currently have Plan F or Plan C?
If you have Plan F or Plan C when the year 2020 approaches, you will not be kicked off your coverage. Since you have been grandfathered in, you will still be able to purchase Plan F and Plan C from private insurance providers even after the year 2020. The MACRA act is only applicable to NEW beneficiaries who are eligible for Medicare on or after January 1, 2020. Beneficiaries who joined Medicare before January 1, 2020 will still be able to enroll in Medicare Supplement Plan F and Plan C.
If you delayed your enrollment for Medicare before 2020 due to employer insurance, you will still be able to enroll in Medicare Supplement Plan F and Plan C when you decide to switch to Original Medicare Coverage after 2020.
What to Consider
With passing of the MACRA Act, there are a few beneficiaries considering to enroll in or leave Plan F. Those who currently switch to Plan F from another Medicare Supplement Plan before 2020, will be grandfathered in after 2020. Since there aren’t any new younger policyholders joining the plan and only aging beneficiaries that will have Plan F, rates possibly could be rise. However, Plan F beneficiaries will be able to shop for a better rate with a different carrier if their current rate begins to increase.
There are also current Plan F policyholders who are starting to leave the plan and enroll in another Medicare Supplement Plan that is not going away. A good example of a Medicare Supplement Plan closely related to Medicare Supplement Plan F is Plan G except for the Part B deductible.
Consider your options and find out what is best for you by speaking to one of our friendly representatives today at (800) 750-2407. Find more about Medicare Supplement Plan F or any other Medicare Supplement policies that are available to you.