Rumor is…Medicare Supplement Plans F & C
Are Going Away After Jan.1, 2020?
Morning Toni:
I am turning 65 in October and noticing a difference in the premiums between many of the Medicare Supplement plans. F is considerably higher in premium than G and I am wondering why there is such a difference.
I have been told from various friends that Plan F is the plan to pick, but I am concerned about there being such a difference in premiums. Many of the plans have a savings of $56 a month or $672 a year when choosing Plan G over Plan F. I don’t understand why there is such a difference and would like some clarity on the difference for me not to make a major mistake. Thanks, Sam from Clear Lake, TX
Sam:
This week, I received information from one of America’s prominent Medicare Supplement insurance companies informing their agents that Medicare Supplement plans F and C will not be eligible for enrollment after January 1, 2020. Medicare Supplement plan G will take the place of Medicare plans F and C.
This information confirmed what I had been hearing in the Medicare community that Medicare Plans F and C will no longer be available in 2020.
Congress passed the new legislation called “Medicare Access and CHIP Reauthorization Act of 2015” (MACRA) to help the medical industry by correcting the “Doc Fix” proposal, but the new legislation ended Medicare Supplement’s plans F and C in 2020, which pick up all of Medicare’s costs and deductibles.
Doctors were concerned about the Medicare cuts to the medical profession and were threatening to leave Medicare.
To keep doctors from bailing out of Medicare, Congress had to come up with that money somewhere and they found it in the Part B deductible that Medicare Plans F and C pickup.
Congress decided to pass 200 billion dollars of Medicare expenses over a 10 year period to the Medicare beneficiaries by eliminating Medicare Supplement plans F and C which pay for Medicare’s Part B deductible.
The new law of 2015 (MACRA) ensures doctors will be adequately paid for Medicare services and that those enrolled in Medicare have the healthcare professionals they need.
Now, you know why MACRA was passed.
Those who are new to Medicare or wish to apply for a new Medicare supplement need to know that Medicare Plan F and C are available until January 1, 2020. One might want to see what Medicare Plan G has to offer.
Let’s discuss the difference:
- Plan F: offers more benefits with higher premiums. Those who wish to enroll or currently have Plan F will not be forced to move because this change only affects newly eligible beneficiaries with effective dates of Jan. 1, 2020 and Medicare Plan F will no longer be available.
- Plan G: offer lower rates with the Medicare Part B deductible not covered and being paid for by the enrolled Medicare beneficiary. Currently the 2016 Medicare Part B deductible is $166. One’s out of pocket would be $166 for 2016. Medicare Plan G will still be available after Jan. 1, 2020 for all newly enrolled in Medicare Parts A and B.
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Toni King, author of the new Medicare Survival Guide®, which is a simple guide that puts Medicare in “people” terms, is on sale at www.tonisays.com Email Medicare or Social Security/LTC questions to info@tonisays.com or call 832/519-TONI (8664).
