Is It Time to Switch Your Medicare Supplement Plan?
Are you enrolled in Medicare Supplement (Medigap) Plan C, F or F+? If so, you may see premiums start going up.
Medicare officials closed those popular plans to new enrollees as of Jan. 1 as part of the Affordable Care Act.
The plans had higher premiums to begin with. But seniors flocked to them because there were little or no out-of-pocket costs, other than the Medicare Part B and Medicare Supplement premiums. Medigap plans C, F and F+ covered all out-of-pocket premiums and copays for covered services.
They provided the maximum protection available against unexpected health care costs for Medicare beneficiaries. But Medicare officials and legislators believed that seniors should share at least some of their health care costs, so they closed these plans, grandfathering in anyone who was already currently enrolled.
As of Jan. 1, 2020, the law also began requiring enrollees in these plans to start paying their Medicare Part B deductible, which is $148.50 as of 2021.
Because plans C, F and F+ are closed to new enrollees, some Medicare planning experts expect premiums to begin increasing, as the number of beneficiaries enrolled in the plans gets older and fewer in number. The risk pool will eventually deteriorate, and costs are likely to escalate as a result.
It may therefore make sense to shop for a new Medicare Supplement plan now. If you want to keep a robust Medicare Supplement plan with a lot of protections and minimize your risk of out-of-pocket health care costs, consider purchasing a Plan D, G or G+.
Plan G provides all the same benefits as Plan F, except for the Part B deductible. Plan D offers all the same benefits as Plan F, except the Part B deductible and Part B "excess charges."
Note also that by law, Medicare Supplement plans are uniform. They don't vary with each carrier. A Plan D policy at one carrier offers the same benefits and coverage as a Plan D policy at any other carrier, except in Wisconsin, Minnesota and Massachusetts. But premiums may differ, so shop around for the best rates.
Your 'free look' period
Once you receive your new Medicare Supplement policy, you have up to 30 days to decide to keep it.
Caution: Don't cancel your coverage at your old Medicare Supplement insurance company until you're accepted in a new plan, coverage is in force and you've decided to keep the new policy. You'll have to pay both premiums for a month. But if the new plan doesn't work for you, you can cancel it within 30 days for a full refund.
Act now
These policies can only be purchased through a licensed insurance agent. There are open enrollment periods and special enrollment periods in some states.
Purchasing a new Medicare Supplement plan is easy ― contact us for more information. We are standing by to help you choose the Medicare Supplement plan that is right for you.
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