What's Happening with Plan F?
The Future of Plan FBy: Ciarra Dobbs, Sales Agent/Owner of Senior Insurance Solutions
Many Medicare Beneficiaries are wondering...what is the deal with Plan F? Is it going away? Yes, it is - but not just yet.
Medigap Plan F has been one of the most popular supplemental plans for the last 20+ years so millions of people will be affected by the decision to discontinue it. However, we have time to plan if you are one of the folks this will affect.
When is Plan F Going Away?
Beginning January 1, 2020 Plan F and Plan C will no longer be available to new enrollees. People eligible for Medicare Part A prior to 2020 will continue to have options to enroll in Plan C and Plan F.
This isn't the first time Congress eliminated certain supplemental plans. In 1990, they first standardized plan options. Meaning, each company offering the Medigap plans had to provide the exact same coverage so that beneficiaries knew their coverage didn't vary even if they switched companies. Then in 2010, they eliminated some plan options like E, H, I and J. Fast forward to 2020 and we now have Plan F and Plan C no longer being offered.
This has scared a lot of people into running out and purchasing Plan F. However, it's possible rates for Plan F may be negatively affected.
Why is Plan F Going Away?
The changes currently going on with Medicare supplement plans are because of a new law you might have heard of called the Medicare Access and CHIP Reauthorization ACT also referred to as MACRA of 2015.
Congress passed this legislation in 2018 to ensure that doctors would be paid more fairly for offering Medicare services. However, earlier laws would have actually decreased pay for doctors over the course of the years following. Doctors around the US didn't react well to this, and many threatened to stop offering Medicare services if the cuts continued. Each year since, Congress has stalled on voting until the very last minute to put off these cuts. However, another solution was needed in order to keep Medicare from needing bailed out, which could cost the country a lot of money over the next decade. To put a stop to the cuts and keep doctors happy, Congress had to come up with another solution.
Medicare Beneficiaries Will Now Be Subject To A Deductible
If you are currently a Medicare Beneficiary, you are most likely familiar with the fact that Part A and Part B both have deductibles, which is the amount of money you pay out of your pocket before your benefits kick in.
Medigap plans will continue to cover the Part A Hospital Deductible, but as of next year the plans can no longer cover the Part B deductible for new enrollees. For the 2019 calendar year, the deductible for Part B is $185.
Enter Plan F. The reason it will be phased out is because it pays for the beneficiaries deductible each year.
How Will This Affect Me?
ONLY new enrollees to Medicare beginning in 2020 will not be eligible for Plan F.
If you are already on Plan F, you will be "grandfathered" in and are allowed to keep it.
Some are worried about the long term affects on Plan F premiums. While it is certainly possible that these rates increase there is no official statement form Medicare or any other accredited source that rates will increase abnormally after 2020. If we use history as a reference, back in 2010 when Medicare discontinued Plans H, I and J, we did see some price inflation with some carriers. However, until the time comes it can't be predicted what will happen with the rates.
What Other Options Would I Have?
A general review of your coverage is always good when there is some change going on that is generating questions or concerns for you. A lot of beneficiaries are considering different supplemental plans such as Plan G. Generally, Plan G has lower monthly premiums. However, you do take on the Part B deductible of $185 (for 2019).
Talking with a local, licensed agent in your area who can best explain your options in person is the way we recommend proceeding with questions or concerns. To set up a free, one on one meeting with us, call us, email us or go to www.yourmedicaregal.com and click "Contact".
Many Medicare Beneficiaries are wondering...what is the deal with Plan F? Is it going away? Yes, it is - but not just yet.
Medigap Plan F has been one of the most popular supplemental plans for the last 20+ years so millions of people will be affected by the decision to discontinue it. However, we have time to plan if you are one of the folks this will affect.
When is Plan F Going Away?
Beginning January 1, 2020 Plan F and Plan C will no longer be available to new enrollees. People eligible for Medicare Part A prior to 2020 will continue to have options to enroll in Plan C and Plan F.
This isn't the first time Congress eliminated certain supplemental plans. In 1990, they first standardized plan options. Meaning, each company offering the Medigap plans had to provide the exact same coverage so that beneficiaries knew their coverage didn't vary even if they switched companies. Then in 2010, they eliminated some plan options like E, H, I and J. Fast forward to 2020 and we now have Plan F and Plan C no longer being offered.
This has scared a lot of people into running out and purchasing Plan F. However, it's possible rates for Plan F may be negatively affected.
Why is Plan F Going Away?
The changes currently going on with Medicare supplement plans are because of a new law you might have heard of called the Medicare Access and CHIP Reauthorization ACT also referred to as MACRA of 2015.
Congress passed this legislation in 2018 to ensure that doctors would be paid more fairly for offering Medicare services. However, earlier laws would have actually decreased pay for doctors over the course of the years following. Doctors around the US didn't react well to this, and many threatened to stop offering Medicare services if the cuts continued. Each year since, Congress has stalled on voting until the very last minute to put off these cuts. However, another solution was needed in order to keep Medicare from needing bailed out, which could cost the country a lot of money over the next decade. To put a stop to the cuts and keep doctors happy, Congress had to come up with another solution.
Medicare Beneficiaries Will Now Be Subject To A Deductible
If you are currently a Medicare Beneficiary, you are most likely familiar with the fact that Part A and Part B both have deductibles, which is the amount of money you pay out of your pocket before your benefits kick in.
Medigap plans will continue to cover the Part A Hospital Deductible, but as of next year the plans can no longer cover the Part B deductible for new enrollees. For the 2019 calendar year, the deductible for Part B is $185.
Enter Plan F. The reason it will be phased out is because it pays for the beneficiaries deductible each year.
How Will This Affect Me?
ONLY new enrollees to Medicare beginning in 2020 will not be eligible for Plan F.
If you are already on Plan F, you will be "grandfathered" in and are allowed to keep it.
Some are worried about the long term affects on Plan F premiums. While it is certainly possible that these rates increase there is no official statement form Medicare or any other accredited source that rates will increase abnormally after 2020. If we use history as a reference, back in 2010 when Medicare discontinued Plans H, I and J, we did see some price inflation with some carriers. However, until the time comes it can't be predicted what will happen with the rates.
What Other Options Would I Have?
A general review of your coverage is always good when there is some change going on that is generating questions or concerns for you. A lot of beneficiaries are considering different supplemental plans such as Plan G. Generally, Plan G has lower monthly premiums. However, you do take on the Part B deductible of $185 (for 2019).
Talking with a local, licensed agent in your area who can best explain your options in person is the way we recommend proceeding with questions or concerns. To set up a free, one on one meeting with us, call us, email us or go to www.yourmedicaregal.com and click "Contact".
Ciarra Dobbs, Sales Agent/Owner
Senior Insurance Solutions
https://www.seniorinsurancesolutions.com/
(573) 692) 5562
3797 Osage Beach Pkwy Suite B3
Osage Beach, MO
Osage Beach, MO
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