Medicare Supplement Plans 2020

In 2015 congress signed into law the Medicare Access and CHIP Re-authorization Act (MACRA). Among other things, the law set new rules for Medicare Supplement coverage. These new rules were set to phase in on January 1st, 2020.  So, Here we are at the end of 2019 and these long awaited changes to Medicare Supplement plans are coming.

In an attempt to curtail Medicare spending, the new law sets rules on Medicare patient out of pocket costs.  Specifically, if you are covered by Medicare, you are not able to receive certain types of healthcare and pay nothing out of pocket for it. Medicare has found that when patient’s have $0 out of pocket costs, this increases usage of Medicare benefits. Over-utilization puts more burdens on an already stretched Medicare fund. Their theory is that with more “skin in the game” patients may be more considerate about their healthcare and costs. This consideration may save Medicare on expenses over time and help preserve the program for seniors. Certain Medicare Supplement policies allow for $0 out of pocket medical costs; These are Plan F and Plan C. So, beginning January 1st, 2020, these 2 Medicare Supplement policies will no longer be available to certain Medicare recipients.

Are The Changes Really A Big Deal?

With any changes and the rumors that follow, there can be confusion and tension. Some may view these changes as the government taking away their rights and choices. The reality is, Medicare Supplement Plan F and C have been phasing out for years now. This has not been from government forces and laws, but by consumer choice. Plans F and C are expensive and don’t offer much more coverage than lower monthly premium alternatives such as G and N. Over the last 5 years, over 9 in 10 clients we’ve worked with have chosen Plan G over Plan F, when presented with the benefits and monthly costs of the two. Read the article “Plan G – The Best Medicare Supplement” to better understand why.

Conclusion And What You Can Do

Plans F and C can be expensive and they get more expensive the longer you’ve had your policy. If you are eligible for these plans (see above sections) and you don’t mind paying the higher premiums, you can continue to choose them. If you would like to save money on your monthly premiums and have better value coverage, check your options with Plan G and N. If you are new to Medicare on or after January 1st, 2020, you still have good options. In fact, as we say above, most consider the options that will remain available to be better than the ones going away. If you are new to Medicare,  two of the most popular plans will still be available to you (G and N). We recommend comparing these plans with several top insurance providers in your area. This will help you save money and find your ideal coverage.