Changes to Medicare Supplements in 2020
There are a couple changes to Medicare Supplements for 2020.
First, Plans C and F are not available to anyone who turn 65 on January 1, 2020 or later.
Second, there have been some changes to the underwriting.
To help clear up any confusion, we're going to go over what these changes are and what it means for your coverage options moving forward.
Medicare Supplements C and F are going away. Now what?
Before we go on, let's talk about what a Medicare Supplement is for those who may not know.
A Medicare Supplement, or Medigap plan, is a private insurance plan that provides additional coverage after Original Medicare pays its share.
There are 10 lettered plans that have a different percentage of coverage (if any) for the following items:
Medicare Part A coinsurance and hospital costs
Medicare Part B coinsurance
First three pints of blood for a transfusion
Part A Hospice care coinsurance
Skilled nursing facility coinsurance
Medicare Part A deductible
Medicare Part B deductible*
Medicare Part B excess charges
Foreign travel emergency (up to plan limits)
Plans C and F were rather popular with Medicare Beneficiaries because they covered nearly every leftover expense associated with Original Medicare.
Plan F covered 100% of everything (except foreign travel emergency in which it matches the maximum of any Medigap plan at 80%). Plan C took care of everything too, besides Part B excess charges.
Now, they are no longer offered because of a law that passed a couple years ago saying after January 1, 2020, plans that cover Medicare Part B's deductible cannot be sold anymore.
So, what plan offers the most coverage now?
Plan G covers everything, including Part B's excess charges, but Part B's deductible. This makes it the new most comprehensive Medigap plan.
Plan N is similar, although it doesn't cover the excess charges. So, whichever one suites your budget best offers outstanding coverage.
What has changed with underwriting?
The law that made Plans C and F go away also changed the plans that were made guaranteed issue (not required to answer health questions).
People who had lost their qualifying coverage (individual health insurance, work-provided, or a Medicare Advantage plan) qualified for guaranteed issue Medigap plans.
Before 2020, Plan F was one of those plans.
Now, the guaranteed issue plans are D and G.
Plan D provides similar coverage to Plan G. It covers everything but Part B's deductible and excess charges.
If you need help understanding your coverage options, you're welcome to give us a call at (423) 240-0794 or send us a message by clicking here.