What Happens to My Medicare Supplement in 2020?
November 12, 2019
A Medicare supplement plan, also known as a Medigap plan, is an insurance policy sold by a private company that helps pay for costs Medicare doesn’t cover. Since Medicare typically pays up to only 80% of costs, many people find it necessary to purchase a supplemental plan. If you currently have a Medicare supplement plan, or are thinking about getting one, changes coming to Medicare in 2020 may affect you. Read on to discover the changes on the horizon.
Medicare Supplement Plans F and C
If you become eligible for Medicare on or after January 1, 2020, you cannot sign up for Medicare Supplement Plan F, Medicare Supplement Plan F High-Deductible, or Medicare Supplement Plan C. Previously, these plans covered the Medicare Part B deductible, which included outpatient services like annual wellness exams. This change means that Medicare recipients must now pay a small deductible for outpatient services, which could save the Medicare program money by encouraging people to visit the doctor only when it’s really necessary.
However, if you enroll in Medicare Part A on or before December 31, 2019, and you have a Medicare Supplement Plan F, Plan F High-Deductible, or Plan C, you are able to keep those plans. The above change in these plans affects only people whose Medicare eligibility date lands on or after January 1, 2020. Additionally, you can even apply for these plans in the future, as long as you signed up for Part A by December 31.
Medicare Supplement Plan G
Even though you can’t supplement Part B if you sign up for Medicare on or after January 1, 2020, Plan G is a great option. Plan G is similar to Plan F—the only difference is that you’ll have to pay a $185 Part B deductible. Once you’ve met the deductible, Medicare-approved healthcare services will have no further out-of-pocket costs for you.
2020 will also bring the newly available Plan G High-Deductible supplement plan. With this higher deductible plan ($2,300 in 2019), you pay your out-of-pocket costs—usually 20% of your bill—until you reach the amount of the deductible. Once you meet the deductible, this supplemental plan pays the rest of your costs.
We know it’s hard to navigate all the ins and outs of Medicare. Classic Insurance & Financial Services is an independent brokerage that specializes in helping clients select the right type of Medicare health insurance for their specific needs. To seek out our resources, services, and advice, click here or subscribe now to our quarterly newsletter.
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