The Medicare Access and CHIP Reauthorization Act (MACRA) is a law that will change Medicare Supplement plans in all states, which becomes effective January 1, 2020. MACRA is a federal law that will change who can buy Medigap Plans F, High F, and C. As of 2020 only beneficiaries that are not newly eligibles will be able to keep Plan F, High F and C.
What’s new with Medigap?
Due to MACRA, on 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 will be accessible for “newly eligible” Medicare recipients: Plans D, G, and high deductible G (which is brand new!)
What is the meaning of “newly eligible” Medicare recipients?
People who are 65 years of age or become 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 have Medicare part A and B and are reading this in 2019, then you are NOT considered “newly eligible” and the MACRA rules do not apply to you.
How are present enrollees in Plans C, F, and High Deductible F influenced by these changes?
Current enrollees (those qualified for Medicare before January 1, 2020) with 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 have the capacity to purchase the new Plan High Deductible G on or after January 1, 2020.
What will happen 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, current 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 when you hear rumors that “plan F is going away” those statements are misleading because Medigap plan F will always be available to current enrollees.
Since MACRA is coming in 2020, which Medigap Plan should I purchase now?
You want to select the gap 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 this isn’t true for everyone in every area. 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.
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