As of 1 January, 2020, Medicare Supplement Plan FMedicare Supplement Plan F is the most comprehensive Medicare supplement plan available. This plan covers all Original Medicare deductibles, coinsurance, and copayments, leaving you with no out-of-pocket costs on all Medicare-approved services. is no longer available to people turning age 65. But, don’t fret, you can still get excellent gap coverage for your Original MedicareOriginal Medicare is private fee-for-service health insurance for people on Medicare. It has two parts. Part A is hospital coverage. Part B is medical coverage..
Key Takeaways
- Medicare Supplement Plan CMedicare Supplement Plan C, also called Medigap Plan C, is one of the most comprehensive of the 10 standardized supplemental Medicare plans available in most states. In fact, only Medicare Plan F offers more coverage. and Plan F are not available to anyone qualifying for Medicare benefits after 31 December 2019.
- For people who qualify for Medicare on or after 1 January 2020, Medicare Supplement Plan GIf you're turning age 65 this year, Medicare Supplement Plan G is the most comprehensive Medicare supplement you can buy. It's also the most popular. You might be thinking that Medicare Supplement Plan F is... offers the most coverage.
- In most cases, a Plan G policy plus the annual Medicare Part BMedicare Part B is medical coverage for people with Original Medicare benefits. It covers doctor visits, preventative care, tests, durable medical equipment, and supplies. Medicare Part B pays 80 percent of most medically necessary healthcare services. deductible will be less than a Plan F policy (annualized). The only difference between the two plans is the Part B deductible.
What Happened to Plan F?
For decades, Medicare Supplement Plan F (aka, Medigap Plan F and Medicare Plan F) was the most popular supplemental Medicare insurance available. But, Congress passed a bill that forbids Medicare supplementsMedicare Supplements are additional insurance policies that Medicare beneficiaries can purchase to cover the gaps in their Original Medicare (Medicare Part A and Medicare Part B) health insurance coverage. from covering the Medicare Part B (medical coverage) deductible. The two policies that offer this coverage are Plan F and C, so they are no longer available to new policyholders.
Going forward, our plan options include A, B, D, G, (including a high deductible version), K, L, M, and N. As a result, Medicare Plan G is now the plan that offers the most coverage.
Why Did Congress Make This Change?
Every ten years or so Congress passes new laws that “modernize” Medicare. Back in 2003, they passed the law that gave us Medicare AdvantageMedicare Advantage (MA), also known as Medicare Part C, are health plans from private insurance companies that are available to people eligible for Original Medicare (Medicare Part A and Medicare Part B). and Medicare Part DMedicare Part D plans are an option Medicare beneficiaries can use to get prescription drug coverage. Part D plans provide cost-sharing on covered medications in four different phases: deductible, initial coverage, coverage gap, and catastrophic. Each... for prescriptions. Before that, in 1990, they passed a law that standardized Medicare supplements into the letter plans we have now. Then in 2010, they passed another law that eliminated Medigap plans E, H, I, and J.
Medicare Plan C and Plan F got the ax in 2020 because Congress wants seniors to have a little more skin in the game when they see their doctor. The Medicare Access and CHIP Reauthorization Act (MACRA) of 2015, signed by President Obama, is the law that made this happen. Congress and President Obama felt that, by allowing insurers to pay the Part B deductible, too many seniors were seeing their doctor needlessly, driving up costs.
Related Article: Is Medicare Plan G Better than Plan F?
MACRA is better known as the “doc fix” law. Congress passed the legislation so they could better compensate doctors for treating Medicare patients. And, there’s no doubt that we need our doctors to be fairly compensated or they will stop seeing us.
Taking Medigap Plan F away may seem like a slap in the face, but savvy seniors have known all along that they can get a Medicare Plan G, pay their own Part B deductible, and pocket the savings. That’s because most Medicare Plan F policies have an annual premiumA premium is an amount that an insurance policyholder must pay for coverage. Premiums are typically paid on a monthly basis. In the federal Medicare program, there are four different types of premiums. that’s greater than Medicare Plan G plus the annual Part B deductible.
From 2020 On, New Medicare Beneficiaries Must Pay Their Part B Deductible Out-Of-Pocket
As you probably know, both Medicare Part AMedicare Part A is hospital coverage for Medicare beneficiaries. It covers inpatient care in hospitals and skilled nursing facilities. It also covers limited home healthcare services and hospice care. and Part B (Original Medicare) have deductiblesA deductible is an amount a beneficiary must pay for their health care expenses before the health insurance policy begins to pay its share.. Deductibles are what you pay out-of-pocket before insurance kicks in to pay its share.
With Original Medicare, the largest deductible is your Part A coverage for inpatient careInpatient care refers to care provided in a hospital or other inpatient facility. Inpatients are admitted and stay at least one night depending on their condition.. Fortunately, Medicare supplements can still cover this deductible. However, as of 1 January 2020, plans can’t cover the Part B deductible for your medical services (doctor visits, lab tests, etc).
Since Plan F and Plan C cover that deductible, these plans are no longer available to new enrollees. However, if you already have one of these plans you can keep it.
People with a Plan F policy have what’s known as first-dollar coverage. That simply means that from day one they are fully covered on all Medicare-approved services. Medicare covers 80% and their Plan F policy covers the rest. That’s a nice convenience, but it does not necessarily result in savings.
Going forward, Congress now knows that every Medicare beneficiaryA person who has health care insurance through the Medicare or Medicaid programs. will pay their deductible out-of-pocket and think twice before seeing their doctor or going to the emergency room instead of making an urgent care appointment. Basically, they want you to think about whether a doctor’s visit is truly necessary.
Medicare Plan F in 2020 and Beyond
As previously mentioned, Medicare Plan F is no longer available to new beneficiaries. However, people enrolled in Medicare prior to 2020 will continue to have Plan F and C options in the future. For this reason, you will still see Plan F and Plan C listed on MedicareWireMedicareWire is a Medicare insurance consulting agency. We founded MedicareWire after seeing and hearing how confusing and frustrating it is to find, understand, and choose a plan. Our services are free to the consumer..
We’ve received calls and emails from people with a Medigap Plan F policy worried that they would lose their coverage. Don’t worry, because that won’t happen. If you have a Plan F policy already, you can keep your coverage. In fact, you find a better rate on a policy from another carrier you can purchase a new Plan F policy, as well. The new law only prohibits the sale of Medigap Plans C and Plan F to newly eligible Medicare beneficiaries as of 1 January 2020.
There has also been some concern coming from people who are still working and delayed enrolling in Medicare Part B. Here again, if you turned age 65 before January 2020, but you have delayed you delayed enrolling in Medicare Part B because you have insurance through your employer, you have no need to worry. When you switch to Medicare you retain your right to buy a Medigap Plan F or Plan C policy.
What Does the 2020 Plan F Change Mean for You?
In all cases, make the best decision for you. If you have a Medicare Plan F or Plan C policy, and your carrier hikes your rates to a ridiculous level, you have the right to shop for a new policy. If first dollar coverage isn’t a concern for you, and you can pass all of the medical questions, you might consider choosing a Plan G or Plan N policy to get extra savings.
Do you have questions that we haven’t answered here? Call 1-855-728-0510 (TTY 711) and speak with a licensed HealthCompare insurance agent. There’s no obligation, and they offer more plan options than any other national agency.