Important Medicare Supplement Plan Changes for 2020

November 11, 2019
Rick Gawenda

Big changes are coming in calendar year 2020 for Medicare beneficiaries who purchase Medicare Supplement plans (known as Medigap). The changes are a result of the Medicare Access and CHIP Reauthorization Act (MACRA) that will change Medicare Supplement plans in all states, and this becomes effective January 1, 2020.

Who will this change impact in calendar year 2020?

The changes will effect ONLY newly eligible Medicare beneficiaries. Newly eligible is defined as “people who are 65 years of age or become first eligible for Medicare because of age, disability or end-stage renal sickness on or after January 1, 2020”.

Why is this change important?

MACRA law states that new Medigap plans will no longer be allowed to cover the annual Part B deductible after January 1, 2020. The only plans that did cover the annual Part B deductible were Plans C and F so this change will only affect plans C and F. Newly eligible Medicare beneficiaries will not be able to purchase Medigap Plan C, Plan F or High Deductible Plan F. This means that newly eligible Medicare beneficiaries will have to pay their annual Part B deductible out of their own pocket.

What about Medicare beneficiaries who do not meet the definition of newly eligible?

Medicare beneficiaries who do not meet the definition of newly eligible will still have the option to purchase Plan C, Plan F and High Deductible Plan F in 2020 and beyond. This change only impacts individuals who become eligible for Medicare on and after January 1, 2020.

Click HERE to access a Benefit Chart of Medicare Supplement Plans Sold on or after January 1, 2020.

I hope you found this article helpful. If you want to know about the 2020 Medicare Part A and B premiums and deductibles as well as how the Medicare Part B deductible impacts the annual outpatient therapy threshold dollar amount, click HERE.

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This article is not intended to and does not serve as legal advice or as consultative services, but is for general information purposes only.

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