Changes are coming to Medicare Supplement Plans C and F. The changes are a requirement of the Medicare Access and CHIP Reauthorization Act (MACRA) passed in 2015. MACRA prohibits insurers from selling Medicare supplement plans covering Medicare Part B deductible to people who first become eligible for Medicare in 2020 and beyond.
People who become eligible for Medicare (at age 65 or due to disability) will not be able to purchase Medicare supplement plans C or F on or after January 1, 2020. This change includes Select C and Select F plans.
Plans C and F will still be available for purchase after January 1, 2020. However, only people who were eligible for Medicare prior to 2020 can purchase them. Insured members with plan C or F will not be affected by this change.
For people who become eligible for Medicare in 2020 and after, Plan G becomes the Medicare supplement plan with the highest level of benefits. AARP Medicare Supplement Plan G will be available for applicants to have effective January 1, 2020.
Medicare Q & A
Q: I’m currently enrolled in Plan C or F. What do I need to do?
A: Nothing. Your current plan is not impacted by the changes in 2020.
Q: If I keep my plan C or F, will I have to begin paying for the Medicare Part B deductible in 2020?
A: No. Plans C and F will continue to cover the Medicare Part B deductible.
Q: How do I know if I am affected by the changes in 2020?
A: You are only affected if you enroll in Medicare on January 1, 2020 or later.
Q: Why are plans C and F impacted?
A: Plans C and F are impacted because they cover the Medicare Part B deductible and because the Medicare Access and CHIP Reauthorization Act (MACRA) mandates that plans no longer cover the deductible. It is believed this change will save Medicare money. Requiring insured members to pay for the Medicare Part B deductible may help reduce the use of Medicare Part B services.
Q: Plan F is the most comprehensive plan now. If I am first eligible for Medicare in 2020, what will the most comprehensive plan be?
A: AARP Medicare Supplement Plan G will be available in 2020. The only difference between Plan F and Plan G is the latter does not cover the Medicare Part B deductible.
Q: When is Plan G available?
A: AARP Medicare Supplement Plan G will be accessible in time for a January 1, 2020 effective date.
Q: I’ve heard the rates for Plans C and F may increase dramatically because the plans will no longer be sold to new Medicare beneficiaries as of January 1, 2020.
A: Plans C and F can still be purchased after January 1, 2020, but only for people who were eligible for Medicare prior to 2020. Also, MACRA is not the first legislation to impact Medicare Supplement plans. There have been other plans closed to new enrollees. While membership in these plans declined over time, the AARP Medicare Supplement plan rates remain stable with low annual increases.