For decades, people on Medicare have had the option to supplement their Medicare benefits with Medigap coverage. The most popular supplement plan for many years has been Medigap Plan F.
As part of the Medicare Access and CHIP Reauthorization Act of 2015 (MACRA), Congress is eliminating Medigap plans that cover the Part B deductible, like Plan F and Plan C in 2020. Medicare premiums for higher income individuals will also be increasing. If this affects the policy holder, there will be time to plan now to minimize the financial impact ahead.
The change is mainly because it provides first dollar coverage after Medicare, covering all the gaps in Medicare and leaving with $0 out of pocket. It’s the policy that makes planning for healthcare spending easiest to predict.
Medigap Plan F is the premier of all supplement plans. It essentially gives the policyholder 100% coverage. Medicare covers 80% of outpatient benefits and Plan F covers both Part A and B deductibles as well as the other 20%.
Fortunately, these changes only affect new enrollees after January 1, 2020, so people currently on Plan F will be able to keep that plan in 2020 and beyond; even be able to shop coverage. If another insurance company offers it at a better price down the road, there will be a measure to change to that insurance company’s Plan F policy. This is good for the long-term rate picture, because insurance companies will still compete for Plan F business. However, over time one can probably expect Plan F premiums to slowly rise, since the total number of people enrolled will be shrinking annually.
While Medigap plans with deductibles are going away, enrollees with this coverage will be grandfathered. If first dollar coverage is important, enroll in Plan F or C prior to 2020 so that one can keep the policy.
“IHS Insurance Group stands ready to assist our clients and prospective clients in navigating and adapting to the 2020 Medicare changes legislation. Specifically, we will consult with our clients regarding these changes and assist them in making the most informed policy selection choices post 2020.” says Michael Steele of IHS Insurance, LLC.
IHS has been licensed since 2005 and has been doing business for 13 years.
To find out more about Medigap insurance, by the Texas leader IHS Insurance, the place to visit is https://ihsinsurance.net/what-we-offer/medicare-supplement-insurance/
For further information about IHS Insurance, LLC, please visit: https://ihsinsurance.net
Release ID: 410617