Changes Are Coming to Medicare Supplements. How Will They Affect You?
It seems a new administration means changes to government programs, as with every change of the guard. The coming changes will have certain Supplement programs cancelled, with current participants grandfathered, and others changed. However, even those grandfathered in will have changes.
Understanding what these will be, how they affect you, before they take place is crucial for making some informed decisions on what will work best for you. Each person is different, so the following information serves to inform you, but it’s recommended that you speak with your insurance professional to get answers to your specific needs.
Medicare Supplement Plan F, AKA MediGap
As of 2020, Medicare Plan F will no longer accept new enrollees. However current enrollees can continue to participate, if they choose; but it does come with caveats. Since the government is trying to control costs, those who choose to purchase MediGap coverage will see an increase in their premiums. Why? Like any business, if there are fewer people paying, it means to provide a certain level of service, more money is needed. That money comes from raising prices. Since no more enrollees will be allowed (the younger healthier member who would use less, allowing the money to be used to provide services for the less healthy individual) the pool of resources will be diminished and will need to be replenished. This will come at your expense.
Medicare Part B and D
In order to try and make this as affordable as possible for all involved, a sliding scale premiums table will be created, where those with higher income will pay more for Part B (doctor services) and Part D (prescriptions). The increase is projected to be around 15%, but that remains to be seen.
Medicare Part B Deductible
Outpatient services will be affecting all Medicare recipients, as the Part B deductible will continue to increase. The Part B deductible, which is currently $183 annually, is indexed for inflation. As inflation increases, so does your deductible, which is predicted to increase again in the next few years.
Home Health Services
If you are a current Medicare member, this won’t affect you. However, new enrollees will see a new $100 copayment for home-health services. The only exception will be if the person was just discharged from the hospital or nursing home, and it was requested by the physician.
What Are My Options?
You do have some options. Which is best for you needs to be discussed with your insurance professional, as each person has different needs and levels of income. However, some things to consider are the following.
Medicare Supplement Part G – MediGap Part G
MediGap Part G is a lower premium policy. This will allow your budget to support any increase by reducing your premium. However, Part G has no Part B deductible coverage. Therefore, while you are saving in the interim, you are responsible for Part B costs not covered by Medicare.
Part G will save you approximately $150 – $160 a year and Part B deductible is $183 a year; hence you will have to come out-of-pocket anywhere from $22 to $32. Ask your insurance professional what is and is not covered for a more comprehensive understanding to see if this is the right solution for you.
Move to a Lower Medicare Advantage Plan
Another option is to consider a lower-premium Medicare Advantage plan that includes prescription coverage and dropping your stand-alone Part D plan. This will absorb the cost of Part D, lowering your expenses and allowing you to save money. Your Medicare coverage is offered thru a private insurance company contracted with the Federal government to provide the same coverage under Original Medicare, but something provides additional benefits, (dental, vision, hearing, fitness clubs, etc.) However, you are responsible to use a Network of providers to insure coverage from the plan.
These changes are here to stay for the time being. So, before making any decisions, speak with your insurance professional and get answers. Compare the changes in coverage with what you currently have, see where the saving in money are good, and where the loss of certain coverage may cost more than the savings. Weigh it out carefully and plan. Your health is too important to wait until the last minute.
