The Medicare Access and CHIP Reauthorization Act (MACRA) is a law that changed Medicare Supplement plans in all states and became effective on January 1, 2020. This law affected who can buy Medigap Plans F, High F, and C. As of 2020, only beneficiaries that are not newly eligible are able to keep Plan F, High F and C.
What’s new with Medigap?
Due to MACRA, as of January 1, 2020:
- Medicare Supplement plans with Part B deductible coverage (Plans C, F and high deductible F) cannot be purchased by “newly eligible” Medicare recipients.
- The following guaranteed issue plans are accessible for “newly eligible” Medicare recipients: Plans D, G, and High Geductible G (which is brand new!)
What is the meaning of “newly eligible” Medicare recipients?
People who are 65 years of age or became first eligible for Medicare because of age, disability or end-stage renal sickness on or after January 1, 2020 are considered “newly eligible”. If you already had Medicare part A and B in 2019, then you are NOT considered “newly eligible” and the MACRA rules do not apply to you.
How are prior to 2020 enrollees in Plans C, F, and High Deductible F influenced by these changes?
Those qualified for Medicare before January 1, 2020 including those who had Plan C, F, or High Deductible F are able to keep their plan. What’s more, they can keep on purchasing Plans C, F, and High Deductible F after January 1, 2020. Current enrollees will likewise be able to purchase the new Plan High Deductible G on or after January 1, 2020.
What happened to Guaranteed Issue Medigap?
Medicare Supplement Plans D and G will be two of the guaranteed issue plans for “newly eligible” beneficiaries on or after January 1, 2020. As stated before, prior to 2020 enrollees can stay with their purchased Plans C, F, and High Deductible F. Even after 2020, people who don’t fall inside the category of “newly eligible” will still have the capacity to buy Plans C, F, and High Deductible F for the first time as well. So don’t be alarmed when you hear that “plan F is going away” since Medigap plan F will always be available to prior to 2020 enrollees and Medicare qualified seniors.
Since MACRA is coming in 2020, which Medigap Plan should I purchase now?
You want to select the Medigap plan that best meets your needs now and in the future. For most of our clients, Medicare Supplement Plan G is usually the best short and long-term fit but there are lots of variables when it comes to choosing a plan. You can get prices and enroll in Medigap Plan F and G here. If you want to discuss your specific case, give us a call at 800-930-7956.