You may have heard the news of Medicare Supplement plans C and F no longer being offered in 2020 and beyond. However, there is a misconception about this fact.
The truth is, that change only applies to people who turn 65 in 2020. So, if you turn 65 January 1, 2020 or later, this change does affect you. If you were already 65 in 2019 or earlier, plans C and F are still available for you to purchase.
Why all the fuss about Medicare Supplement plans C and F?
A few years ago, the Medicare Access and CHIP Reauthorization Act of 2015 passed and barred Medicare Supplements (Medigap plans) from offering first-dollar coverage of Medicare Part B’s deductible starting in 2020. Supplement plans C and F offer that first-dollar coverage as they cover 100% of Part B’s deductible.
In fact, these two plans are among the most comprehensive in their coverage among the Medigap plans. In turn, this made the two plans a couple of the most popular chosen by Medicare beneficiaries.
Plan F offers the greatest coverage. It covers 100% of:
- Medicare Part A coinsurance and hospital costs
- Medicare Part B coinsurance or copayment
- First three pints of a blood transfusion
- Part A hospice care coinsurance or copayment
- Skilled nursing facility coinsurance
- Part A deductible
- Part B deductible
- Part B excess charges
It also covers 80% of a foreign travel emergency.
The only difference between C and F is that it does not cover Part B’s excess charges — the allowable limit (15%) by Medicare in which doctors can charge more than what Medicare covers.
Which Medigap plan offers the best coverage now?
Even before 2020 disallowed newly eligible Medicare beneficiaries to choose Medicare Supplement Plans C and F, Plan G was the second most often chosen Medigap plan. That is because it covers all leftover costs other than Part B’s deductible.
That deductible is $198 in 2020.
Even if you still have plans C and F available to you, Plan G might make fiscal sense to you. If plan G is more than $16.50 cheaper per month than plan F, you are saving money.
When can I enroll?
If you are becoming eligible by turning 65, once you have Medicare Part B you have six months to enroll in a Medicare Supplement plan with no health questions. This is a one-time open enrollment in which you cannot be turned down for any health conditions, you cannot be asked any medical questions, and you cannot be charged an additional premium for health reasons.
However, once this one-time enrollment is over, insurance companies can begin to refuse you based on health.
Sometimes, states have different rules that open other windows of opportunity for guaranteed coverage. So, be sure to speak to a licensed Medicare insurance agent to be certain of your eligibility.
If you are under the age of 65 but are enrolled in Medicare, be sure to give us a call to check your eligibility.
Just to be clear, you are allowed to enroll in a supplement at any time once you are enrolled in Part B. You will just be subject to health questions.
I’m interested in a Medicare Supplement plan. Now what?
We welcome any questions you may have. We love to educate people on Medicare and 100% honesty is our standard. We’ll never trade your trust for money and we’ll never promote a product that’s not right for you. So, contact us today and we’ll get you the information you are looking for!