There has been a lot of confusion regarding the elimination of Medicare Supplement Plan F, so we are here to help clear some things up!
What changes are taking place?
The Medicare Access and CHIP Reauthorization Act of 2015 (MACRA) is eliminating any plan that automatically covers the Part B deductible – such as Medigap Plan F & Medigap Plan C.
When will these changes take place?
January 1, 2020
How will these changes affect me?
If you are currently enrolled in Plan F or Plan C, you will not be kicked off of your plan, nor will it be required for you to change your coverage. AND… if you become Medicare eligible before 1/1/2020, you will still be able to enroll into either of these plans.
*With that being said, we do like to advise our clients to keep in mind that as these plans phase out and enrollees for them decrease each year, that premiums for these plans will likely continue increasing.*
Why are these changes occurring?
These “Cadillac Plans” essentially give the beneficiary full-coverage without having any out-of-pocket expenses. Enrollees of these plans do not have to pay the part B deductible ($185 in 2019) and are not responsible for any copays.
SO… by eliminating plans where the insurance companies cover the Part B deductible (and by having Medicare enrollees pay it instead)… the government hopes to prevent medical overuse, to adequately pay doctors for better treatment to beneficiaries, and to reduce overall Medicare spending.
As always, feel free to call us with any questions. We would be more than happy to review your coverage and to help ensure the proper steps are taken to help protect your future!
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