What does this mean for you?
If you already have a Medigap Plan F or are considering getting a Medigap Plan F, you should be aware of the new law that went into affect on April 16, 2015.
There are several provisions in the law (which can be found HERE), but section 401 of the new law is one that you should understand. Essentially, the federal government is no longer allowing newly eligible beneficiaries to obtain a Medigap policy that covers the Part B (Medical) deductible ($147/year in 2015).
So Plan F will no longer be available starting January 1, 2020.
The Good News...
If you have Plan F already, you can keep it and will not be forced to move to another plan since this only affects newly eligible Medicare beneficiaries.
The Bad News...
The Plan F premium rates will be increasing at a higher rate than the other Plans that are not impacted.
Why is this?
Each plan is individually rated based on the costs (e.g. claims processed) for that particular plan. So, after 2020, when Plan F is no longer accepting new applicants, the pool of Plan F members will begin to age more so than other plans, which will drive higher proportionate claims cost and thus drive up the premiums for Plan F.
So what should you do?We recommend the Medigap Plan G, which has:
- lower premium rates than Plan F and
- provides all the same coverage, except for the $147 Part B deductible.
If you are healthy, it is important that you act now since you will have to go through medical underwriting in order to switch your Medicare Supplement Plan. If you wait until a later point, you risk potential health issues that could prevent you from changing your Supplement plan.
Get a Plan G Quote or Call Now to see if you qualify for a Plan G
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President, Senior Advisors