As part of the Medicare legislation, Plan F will be discontinued in 2020. Many Medicare beneficiaries are concerned about this, but there will still be plenty of options. Here's what's happening:
Reason for Plan F Going Away
Congress passed the MACRA legislation to help create better and more stable funding for primary care doctors. Every year, cuts to doctor reimbursements were scheduled based on previous legislation. The MACRA legislation brought about some stability so that Congress doesn't have to keep addressing this in special sessions each year.
As part of this legislation though, there were also some fixes to other things. One item Congress addressed was their belief that Medigap plan that provided first-dollar coverage actually encourage people to go to the doctor.
If you buy Plan F, it covers all of the deductibles, copays and coinsurance for Medicare beneficiaries like you. When you go to the doctor, you pay absolutely nothing. Some of our legislators believe that this makes you more likely to run to the doctor whenever you get a small tickle in the back of your throat.
If you instead face a Part B deductible that you must pay out of pocket, then you might decide to take some over the counter meds and get some rest. By making you ineligible to buy first dollar coverage, they hope to reduce Medicare spending. So Plans C and F will go away in 2020, but not for everyone.
Change Only Affects New Enrollees
If you are already on Plan C or F as of 2020, you will be grandfathered. This means you can keep that coverage as long as you like. If your rate goes up, and you wish to apply for a Plan F at another company, you’ll be able to do that too.
In most states, this does require you to answer health questions on the application for the new plan. People healthy enough to qualify can change their Medigap plan at any time. They will be able to choose Plan F or they can move to a less comprehensive Medigap plan if they wish to do so.
New enrollees in 2020, however, will not be able to choose Plan C or Plan F. The option for the most comprehensive coverage after 2020 will be Plan G. Medigap Plan G makes you pay the Part B deductible annually. After you satisfy that deductible, then Plan G covers everything else, just like Plan F does now.
Plan G has been gaining in popularity in recent years. Many new Medicare beneficiaries are used to paying deductibles on their employer coverage, so a small Part B deductible does not intimidate them. Plan G offers lower premiums because you take on your own Part B deductible. This makes it a better value than Plan F in many circumstances.
Other Medigap Options
Another plan that has become more popular recently is Medigap Plan N. This is a newer plan that was just introduced in 2010. Under Medicare supplement Plan N, you will pay for your own Part B deductible just like on Plan G.
You will also pay your own excess charges. Some doctors charge up to 15% more than Medicare pays them. This is an excess charge. Under Plan G, this is covered for you. However, on Plan N, you pay your own excess charges. Some people are not concerned about this. They just ask their providers up front whether they accepted Medicare’s assigned rates. If the provider says yes, they don’t need to worry about excess charges anyway.
People with Plan N coverage will also pay some copays for services. When they visit a doctor, they will owe a copay up to $20 per visit. If they visit an emergency room, their copay will be up to $50. Because people with Plan N pay more of their own costs, the premiums for Plan N are often lower than Plan G. You can compare rates for Plan G and Plan N and see which one you feel offers the better value.
Get Help Choosing the Right Plan
Often people feel there are too many choices for Medicare supplement insurance. It can be overwhelming to try to learn your choices. Fortunately, there are many Medicare insurance brokers that can help you learn how Medicare works, and then evaluate which type of Medicare supplement would best fit your needs.
In addition, Medigap plans do not cover outpatient drugs. You will need coverage for your medications. Your Medicare insurance broker can help you find an affordable drug plan that will cover the medications that you take.
At Boomer Benefits, we work with over 30 Medicare supplement insurance companies. We can help you compare rates to find the lowest cost for the supplement you want. We’ll also assist you with choosing a suitable drug plan. Give us a call at1-855-732-9055.
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