Let’s set the record straight on Medicare C & F

For those of you that are currently enjoying the benefits of Supplement/Medigap Plan C and F (& HDF), I say to you, “Don’t panic!!!”.  You are NOT going to just lose your plan on January 1st.  Just like when Medicare retired Plan J back in 2010, your plan will be grandfathered in.  What does this mean?  As long as you continue to pay your monthly premium, you can keep Plans C and F as long as you’d like.  There is absolutely no reason for you to change your plan.  I have already been getting phone calls from panicked folks telling me they have been contacted by agents suggesting they make a change from F to G.  The only reason I would suggest you do this is if Plan G is a better value for you; a much better value.  And, if you decide to make a change, never cancel your current plan until you receive confirmation of approval from the new plan.  Remember, unless you are in a Guaranteed Issue period, acceptance is not automatic – your application will be underwritten and you can be declined.

Back to Plans C and F.  Medicare has decided that beginning on January 1st, 2020 those plans will no longer be available to new Medicare beneficiaries.  Turning 65 next year?  Then that’s you.  However, if you entered Medicare prior to January 1st, then Plans C and F will continue to be available to you.  So, if you can no longer have Plans C & F, what will be the “best” plan then?  Well, the most benefit-rich plan after January 1st will be Plan G.  This plan requires that you pay the Part B deductible ($198/year in 2020) prior to the Plan picking up the balance of the 20% coinsurance, with Medicare paying the other 80% of Medicare covered services, as well as the Hospital deductible, etc.

The High Deductible Plan F has been a very popular plan that is also being retired.  Many companies will begin offering the High Deductible G plan.  Personally, I wish they would not use the term “deductible” as I think that’s misleading.  HDG requires that you pay your Medicare cost share (Parts A & B deductible, 20% coinsurance and other costs) until you personally have spent $2340 out of pocket, at which time the insurance plan will step in and cover the balance.  So your worst case catastrophic costs in one year will be no more than $2340 of Medicare covered services.  It’s more of a cap on expenses than a traditional deductible.  The premium is usually priced right, too.  I think this is a very good option for beneficiaries that are enjoying fairly good health and would like a plan offering great flexibility with a monthly premium that won’t break the bank.

So there you have it.  Don’t panic if you are currently enrolled in Medicare Plans C, F or HDF – you won’t lose your coverage.  And for those of you entering Medicare for the first time after January 1st, you still have Supplement/Medigap Plans:  A, B, D, G, K, L, M & N to choose from.  Questions?  Feel free to call, click or come in today.  You’ll be glad you did!  We give free advice and help you enroll in the plan of your choice.  Don’t go it alone!