Yes, but not until January 1, 2020 and not for everybody.
Medigap Plan F has been one of the most popular supplement plans for decades and this change will affect millions of people in the future. Most individuals who choose traditional Medicare, choose the Plan F supplement. It is the most popular choice, since it provides the most coverage for gaps.
Who will this affect?
- If you are on Plan F already prior to 2020, you will not be kicked off your coverage. You will also be able to continue to purchase Plan F policies from other carriers after 2020 as well.
- If you are eligible for Medicare prior to 2020 and have not enrolled because you still have employer insurance, when you leave that insurance and switch to Medicare, you will be able to enroll in Plan F.
- If you are a new Medicare participant starting in 2020, you will not be able to enroll in Plan F and will not have coverage for the Medicare Part B deductible benefit.
Why is this change happening?
This change is due to the Medicare Access and CHIP Reauthorization Act (MACRA) of 2015, also referred to as the “doc fix” law. Congress passed this legislation in an effort to help reduce cuts to physician payments for providing Medicare services. Many doctors have left the Medicare program or have threatened to leave if a change did not happen to ensure they are fairly compensated for the care they provide. The cost for making this change is estimated to be about $200 billion dollars over the next 10 years. Reforming the existing Medigap policies is part of the solution to create the funds.
Plan F is referred to as a “first-dollar” coverage plan because it covers the annual Medicare Part B deductible. This allows participants to get medical care without having to pay the annual deductible, which is $183 as of 2017. It is thought that, if Medicare beneficiaries have to pay the deductible themselves, they might be discouraged from seeing a doctor unnecessarily, which would decrease Medicare spending by the Government.
Medicare is also experiencing financial strain from the growing “Baby Boomer” generation enrollment and the growing cost of medical care.
What to do now?
There is still time to research the best option for you and to make the necessary changes based on your health, budget and state specific laws. If you determine Plan F is the best coverage for you, enroll. You will be grandfathered in if you choose to keep it past 2020.
Carol Chaudet
(Last Updated: 04/13/2017)