What can insurance agents look forward to in 2020 from UA?

medicare supplement plan changes 2020

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.

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