Medicare beneficiaries often buy “Medigap” insurance that pays for many of regular Medicare’s deductibles and copayments. But as a result of legislation just passed by Congress, starting in 2020 Medigap plans will no longer be allowed to offer coverage of the Medicare Part B deductible, which is currently $166 (in 2016). However, current Medigap policyholders and those buying policies before 2020 will still be eligible for the deductible coverage after that date.The change is an effort to help pay for so-called “doc fix” legislation that overhauls the way Medicare pays doctors and that is expected to cost $200 billion over 10 years. Medicare Part B covers doctor visits and other outpatient care, and currently Medigap plans C and F offer coverage of the Part B deductible. The reasoning behind making Medicare beneficiaries pay the deductible themselves is that it will cause them to think twice before going to a doctor and perhaps costing the Medicare system unnecessary money.
Some argue, however, that if the change prompts beneficiaries to forego needed medical care, they may simply require more expensive care later, costing Medicare more in the end. Critics also saythat the change will encourage more beneficiaries to abandon regular Medicare and join Medicare Advantage plans, which will still be able to cover the deductible.
In addition to the Medigap change, affluent seniors will have to pay higher Part B premiums as a result of the legislation. Starting in 2018, individuals with incomes between $133,500 and $214,000 (or twice these figures for couples) will pay more; details here. And the regular Part B premium will rise faster than under current law as a result of the “doc fix” legislation.
Since plan F supplements will no longer be available to the younger (typically healthier) generations, the only people that will have plan F supplements post 2020 will typically be the older, more costly beneficiaries. This will likely cause premiums to rise at a much quicker rate for seniors that carry them due to claims that get filed. Because of this, having a plan G supplement could be a much less costly route to go compared to the plan F. To find out which carriers are most competitive for supplements in your area and also who would most likely approve you for an underwritten policy, call one of our trusted consultants today at 1.800.423.5511!
For details on the changes from Reuters, click here.
For the Center for Medicare Advocacy’s analysis of the “doc fix” bill’s impact on Medicare beneficiaries, click here.
If you would like to find out more about how this specifically can impact you and your insurance now and in the future
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