There will be serious Medicare Supplement Changes in 2020. In 2015, Congress passed the Medicare Access and CHIP Reauthorization Act, known as MACRA. It will become effective 1/1/2020 and will have a serious impact on Medicare Supplement (Medigap) plans.
Whether the new law is applied to a particular beneficiary or not, depends on whether a beneficiary is considered newly Medicare-eligible or not.
A beneficiary is newly Medicare-eligible if he/she turns 65 or become eligible for Medicare before 65 (due to disability or end-age renal disease) on or after 1/1/2020. Otherwise, a beneficiary is NOT newly Medicare-eligible.
Medicare Supplement Changes in 2020 for Newly Medicare-eligible Beneficiaries
According to MACRA, the newly Medicare-eligible beneficiaries, cannot buy Medicare Supplement plans with $0 out-of-pocket costs. They include:
The following plans will substitute the discontinued plans C, F and Plan F High-Deductible
No Medicare Supplement Changes in 2020 for the Rest of Us
People who turn 65 or become eligible for Medicare before 65 before 1/1/2020 will not be affected by MACRA ruling. In other words:
- Beneficiaries who already have Medigap plans C, F, and F High-Deductible prior 1/1/2020 will be able to keep them as long as they choose.
- People having a Medicare Part A who are still working and plan to retire in 2020. They will get Medicare Part B and will be able to purchase Medigap Plans C, F or F High-Deductible.
- People who are under 65 now, have Medicare and one of the $0 out-of-pocket Medigap plans, will have the second Medigap Open Enrollment when they turn 65. If it’ll happen after 1/1/2020, then they will only be able to purchase Medigap Plans D, G, or G High Deductible plans.
Changes in Guaranteed Issue Plans
Starting 1/1/2020, MACRA is making both Plan D and Plan G guaranteed issue plans for newly Medicare-eligible beneficiaries who are not allowed to enroll in Plan C or Plan F. If you’re Medicare-eligible before 2020, then you will NOT be given guaranteed issue for Plan D and Plan G. However, you will still be eligible for a guaranteed issue with Plan C and Plan F.
New High-Deductible Plan G
Medigap Plan G High-Deductible will be available starting 1/1/2020. It will substitute Medigap Plan F High-Deductible and will be available regardless whether you are Medicare-eligible beneficiary or not.
Other Sources
Medicare Supplement in 2020 – AHIP
Benefit Chart of Medicare Supplement Plans Sold on or after January 1, 2020
US Government Sources
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