According to Congress, the Medigap or Medicare Supplement Plan F will be discontinued in 2020. This means that new enrollees will no longer be able to purchase Plan F. Those Medicare beneficiaries who already have Plan F will be able to keep their plan. So, what does this mean for the Medigap market?
Naturally, enrollees are going to wonder what other Medigap plan comes close to Plan F coverage wise. Plan G covers just about everything that Plan F covers except for the Part B deductible which as of 2019, is $185. Plan G is a great alternative if Plan F is discontinued. In most cases, Plan G makes sense financially over Plan F. Remember, the difference between Plan G and Plan F is about $185. If the difference in premium between Plan F and Plan G is more than $185 annually, than it makes more sense to select Plan G. This factor is overlooked in most cases because most Medicare beneficiaries are programmed to think they must buy Plan F because it is the “Cadillac” of Medicare supplements and in certain cases, they are right but not always. It is always worth a second look to see if Plan G is the better option.
Medicare Beneficiaries have until the end of the 2019 to purchase Plan F before it is said to discontinue. However, it is important to look down the road. If Plan F is discontinued, that means that no new enrollees can be added which means the “doors have closed” so to speak. Therefore, all the Medicare beneficiaries on Plan F are going to continue to get older and naturally have more and more claims to file with their respective carriers which in turn means potential rate increases. Up to this point, the younger Medicare Beneficiaries were able to purchase Plan F which helped with the balance of claims versus premiums. That concept will go away if and when Plan F is discontinued. So, it is important to keep this in mind when selecting the right Medigap policy. Here at Next Level Benefits, we are independent agents who can shop the different carriers in your area to find the right fit. Give us a call to take your Medicare experience to the Next Level.
