Medicare Changes in 2020

The year 2020 will bring many changes to Medicare, these changes affect all current and future Medicare beneficiaries.

Below we’ll discuss all these changes to ensure you remain informed regarding your Medicare benefits.

January 1, 2020, first-dollar coverage plans will no longer be available to individuals who are Medicare-eligible after 2020.

First-dollar coverage plans are Medicare Supplement plans that have zero out of pocket costs.

The Supplement Plans considered first-dollar coverage plans:

1. Plan C
2. Plan F
3. High Deductible Plan F

First-dollar plans are great for those with Medicare and Cancer. These plans are also ideal for people with serious, ongoing health conditions.

Of course, you’d need to purchase a policy during the Guaranteed Issue period to avoid answering health questions.

In 2015 the Medicare Access and CHIP Reauthorization Act was passed, eliminating all Medigap Plans that cover the Medicare Part B deductible.

This act was passed because some members of Congress believe have been over-using healthcare services because they don’t have to pay for anything out of pocket whatsoever.

Legislators on Capitol Hill are hoping to restrict beneficiaries from going to often to the doctor for every minor issue that arises by making everyone have to pay the Medicare Part B deductible.

The reduction of spending isn’t the only issue Congress has been trying to avoid, figuring out how to get doctors paid better is also at the top of their list.

If beneficiaries are paying the deductible rather than insurance companies, doctors will receive a higher income.

Doctors have threatened to quit the Medicare program if they were paid less, Congress created the Medicare Access and CHIP Reauthorization of 2015 (MACRA).

Due to this act, doctors should receive the fair payment for Medicare services.

Changes will only impact those beneficiaries who aren’t considered eligible for Medicare until after 2020.

If you turn 65 prior to January 1^st, 2020, you can still enroll in these first-dollar coverage plans, even after they’ve been discontinued.

Discontinuation will only apply to those who are Medicare eligible AFTER January 1^st, 2020.

Are you already enrolled in a first-dollar coverage plan? If so, you’re in luck!

Those already enrolled will be grandfathered in, no changes to your coverage will be necessary; unless you’re interested in comparing benefits and/or rates to see if there might be a better plan for you.

If you’re Medicare eligible before 2020, and you chose not to enroll in Medicare Part B for whatever the reason until after 2020, you may still enroll in a first-dollar coverage plan to supplement your current Medicare benefits.

Again, if you’re Medicare eligible PRIOR to 2020, you can still sign up or enroll for a first-dollar coverage plan even after they’re discontinued.

Beneficiaries that won’t be eligible for Medicare until after January 1^st, 2020 still have alternate options to keep all of the out-of-pocket costs low and affordable.

Difference between the alternative plans we will cover, and the going-away first-dollar coverage plans is the Part B deductible.

We referenced above the 3-plans that would be considered to be “First-dollar Coverage Plans” if we break them down to better understand the upcoming changes it will become less confusing.

Plan C has an alternative referred to as Plan N:

• Plan N is considered a cost-sharing plan due to beneficiaries being responsible to pay a co-payment of up to $20 for regular doctor visits and upwards of $50 to visit the emergency room.

Plan F has an alternative option called Plan G:

• Plan G will cover all medical and hospitalization costs, including excess charges. This plan is already more popular, and it offers excellent coverage with a significantly lower premium than Plan F.

Once the annual Part B deductible is met, Medicare Supplement Plan G includes all four Medicare benefits:

• Deductible for Medicare Part A
• Co-insurance for skilled nursing care
• Medicare Part B excess charges
• Foreign travel emergency

Medicare covers 80% of all of these and the beneficiary will be responsible for the remaining 20%.

Plan N is an ideal option for those who are looking to save money on premiums, don’t mind having a small copay, and aren’t as concerned about excess charges that may apply.

Some states don’t allow excess charges, and not all providers will charge them.

After the deductible, Medicare Plan N includes coverage for:

• Deductible for Medicare Part A
• Co-insurance for skilled nursing care
• Foreign travel emergency coverage

Medigap Plan F High Deductible falls under Plan F, it’ll be discontinued in 2020.

Currently, there is no alternative plan in place for the High Deductible Plan F, but we’re anticipating that a High Deductible Plan G will be ready 2020.

If you’re on Medicare, then you know changes are constant. Understanding the changes being made means you get the most out of Medicare.

The biggest suggestion I can make to Medicare Beneficiaries is to speak with a licensed insurance broker in your state. A broker can access all the top-rated carriers and find you the most suitable coverage. Plus, if you’re already on the best plan for you, they can’t make you switch.

Change is inevitable but when you know the important changes and plan your healthcare, you can prepare yourself for anything.