The number of beneficiaries enrolled in Medigap plans increases every year. Original Medicare isn’t enough for most seniors, so chances are that they will enroll in either Medicare Advantage or Medigap. It’s especially popular among low-income Medicare beneficiaries who cannot afford Medicare Advantage but need another form of additional coverage. Let’s take a look at the changes coming to Medicare Supplement plans in 2018.
Plan F has become the most popular Medicare Supplement plan as it covers the most out-of-pocket expenses. It includes Parts A and B deductibles, coinsurance, and copayments as well as Part B “excess charges.” That means that if a medical service or good costs more than the Medicare-approved amount, Medigap Plan F can cover the remaining charges. Plan F even includes foreign care in the case of emergency! Plus, beneficiaries can opt for a high-deductible version of Plan F to reduce their monthly expenses. Plan C, though not available in a high-deductible version, covers most of the same items as Plan F.
Unfortunately, Plan F is disappearing for new beneficiaries as of January 1, 2020. The Medicare Access and CHIP Reauthorization Act of 2015 (MACRA) included new rules that prevent new Medicare beneficiaries from enrolling in a Medigap policy that covers the Part B deductible, which rules out Medigap Plan F and Medigap Plan C (two of the most popular plans).
Now that Medicare Advantage plans are able to offer even more (like transportation and grocery benefits), beneficiaries are starting to lean towards MAPD plans more than Medigap. It makes the most financial sense to combine all health-related benefits into one convenient plan. Most Medigap enrollees will still need a prescription drug plan and ancillary policies like dental, vision, cancer, etc. Plus, with the inclusion of more DSNP plans and even some options for commissionable ESRD-friendly MAPD plans, more and more seniors are eligible for great, affordable MAPD plans.
If you are not contracted with MAPD carriers or do not have an ESRD-friendly MAPD plan in your book of business, get in touch with us! We are contracted with every major carrier and can help you complete the contracts you increase your close rate. Click here to request more information or call us at 844-452-5020.