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What Does It Mean for You?

Currently, the most popular Medicare Supplement plans are Plan F and Plan C.  These plans provide 100% coverage of all the Medicare deductibles and coinsurance amounts.  That means these plans offer “first dollar” coverage. And, big changes are coming in 2020.

However, there is a lot of information swirling and much of it may not be accurate. Let’s break it down.

MACRA

In 2015 Congress passed the Medicare Access and CHIP Reauthorization Act (MACRA). Specifically, MACRA eliminates “first dollar” coverage for newly eligible individuals on or after January 1, 2020.

Will This Affect Me?

If you become eligible for Medicare BEFORE January 1, 2020, you ARE NOT a “newly eligible” individual.  That means this law does not impact you.

In fact, even after January 1, 2020, current Medicare Supplement policyholders, your policy does NOT change, and no action is required.

According to Joel Lourie, President & CEO of Lourie Life & Health, “We are hearing from clients that are being told by other agents that their premiums for coverage under Plans C or F will be going up to such an extent that they should switch plans. These statements are simply not true and are intended to convince them to unnecessarily switch coverage.”

To sum up, the South Carolina Department of Insurance has the full release: THE TRUTH ABOUT NEW MEDIGAP CHANGES NEXT YEAR

What If You Become Eligible for Medicare After January 1, 2020?

Comparatively, for those who are Medicare-eligible on or after January 1, 2020, your Medicare Supplement options will change.  You will not be able to purchase a plan that covers the Part B deductible.  That means that Plans C, F, and High Deductible F will not be an option.

What’s Next?

To summarize, if you are on a Medicare Supplement policy or are Medicare-eligible prior to January 1, 2020, be reassured that your policies do not change.  You can keep your existing coverage.  If you are becoming eligible for Medicare in 2020 or later, your options will be different.

Ultimately, in today’s environment, it is more important than ever to turn to trusted sources to understand your Medicare options.  If you have questions, reach out to one of our licensed professionals by CLICKING HERE.