Have a Medicare Supplement Plan C, F, or HDF/F+? Or are you interested in buying one? Effective January 1, 2020, there is new legislation affecting these plans. Here’s what consumers should know:
Medigap Plans C, F, and HDF/F+ are changing.
A new federal law prohibits first-dollar Part B coverage. (First-dollar coverage is coverage of all claims without paying any out-of-pocket costs.) Since Medicare Supplement Plans C, F, and HDF/F+ cover the Part B deductible, this law applies to these plans, so effective January 1, 2020, Plans C, F, and HDF/F+ will not be available to newly-eligible Medicare beneficiaries. Newly- eligible Medicare beneficiaries are anyone who: (a) attains age 65 on or after January 1, 2020, or (b) who first becomes eligible for Medicare benefits due to age, disability, or end-stage renal disease (ESRD) on or after January 1, 2020.
Current policyholders will NOT lose coverage.
Current enrollees (those eligible for Medicare PRIOR to January 1, 2020) can keep their Plan C, F, or HDF/F+ will keep their guaranteed renewable coverage. Current enrollees may continue to buy these plans and will also be able to buy the new High Deductible Plan G when available.
If you’re a United American customer with Plan C, F, or HDF/F+, you may wish to convert your plan in the future to a plan that offers lesser coverage; you will not have to answer any health questions to complete a policy conversion (health questions not applicable in New York or Connecticut).
Newly-eligible Medicare beneficiaries will have new plans available to them.
Medicare Supplement Plans D, G, and HDG/G+ will replace Plans C, F, and HDF/F+. The only difference between Plans C and F and Plans D and G is the coverage of the Part B deductible under Plans C and F, which is eliminated for newly-eligible beneficiaries.
Plan F High Deductible cannot be sold to newly-eligible Medicare beneficiaries because it covers the Part B Deductible, so a new Plan G High Deductible has been created. It will be available to buy with an effective date of January 1, 2020 or later and newly-eligible Medicare beneficiaries and current Medicare beneficiaries will be able to buy this plan.
Part B deductible expenses paid by the policyholder will be considered an out-of-pocket expense toward meeting the annual Plan G High Deductible.
Individuals who turn 65 before January 1, 2020 will be able to purchase Medicare Supplement Plans C, F, or HDF/F+ when they are enrolled in Medicare Parts A and B, even if that is after January 1, 2020.
Individuals who become Medicare-eligible before January 1, 2020 based on disability or ESRD status are eligible to buy a Plan C, F, or HDF/F+ when they become enrolled in Medicare Part A and Part B.
To summarize: if you already have a Medicare Supplement Plan C, F, or HDF/F+ and you wish to keep it, you may do so as long as you pay your premiums on time. These plans may be purchased by newly-eligible Medicare beneficiaries before January 1, 2020.
Anyone who is a newly-eligible Medicare beneficiary on January 1, 2020 or later will be able to purchase the new Medicare Supplement Plans D, G, or HDG/G+ (but not C, F, or HDF/F+).
If you have any questions about these plan changes or your eligibility go to CMS.gov or contact a licensed Medicare Supplement insurance agent.