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Retirees

Posted on: June 13, 2019

MEDICARE Changes After 2020 Affect your Dollars

Medicare-questions

You heard the news at the Quarterly Retiree Lunch about a major change to a Medicare Plan. Now you’re wondering, “Why is Medicare Supplement Plan F being phased out in 2020?”

As of January 1, 2020, Medicare Supplement Insurance Plan F will no longer be sold. It may be time to start thinking about alternatives for your existing Medigap coverage. Plan F is popular and many seniors rely on having deductibles and coinsurance paid in full.

Nevertheless, in 2020, Medigap plans will no longer offer coverage for the Part B deductible ($185 in 2019). As a result, Plan F, Plan C and High-deductible Plan F are being phased out. Here’s what you need to know:

Medicare Plan F ends 2020Plan F Will No Longer Be Offered to New Enrollees After 2020

To be clear, current Medicare policyholders won’t be forced to give up their Plan F coverage. Existing policyholders and those who buy before 2020 are eligible for deductible coverage. In other words, if you have Plan F now, you can keep it.

However, for new recipients, Plan F may not be an attractive option as premiums are likely to become more expensive. Why? It has to do with the costs of claims processed. After 2020, when Plan F is no longer accepting new applicants, claims will increase due to an aging membership pool, which increases premiums. It is possible that another version of high-deductible Plan F might be offered, but that remains to be seen.

Plan G as an Alternative to Plan F

Currently, Plans C and F are the only two Medigap plans offering coverage of the Medicare Part B deductible. As they are pushed out, Plan G may be a smart alternative as it provides the exact same coverage without the Part B deductible.

Again, if you are currently enrolled in Plan F, you won’t lose coverage in 2020. As with other plans that have been eliminated, premiums for Plan F are expected to rise and it may be a good strategy to switch from Plan F to Plan G now, securing the same benefits – of course, without coverage for the Part B deductible.

Medicare Advantage still offers coverage for Part B Deductible

Paying the Part B deductible may be challenging for some seniors, which could make obtaining Medical care difficult. The good news is, Medicare Advantage will continue to offer coverage for the Part B deductible. Plus, it may be a cost-effective alternative to Medicare Supplement. With low or $0 premiums and comprehensive benefits, the right Medicare Advantage plan means security and peace of mind in uncertain times.

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