I hope this blog finds you all doing well!
I wanted to touch base on some changes coming around as we get closer to the closure of Plans C & F. Remember, after Dec. 31, 2019 these two options will no longer be available to people new to Medicare. If you are already on Medicare and have one of these two plans, you will be able to keep them, but as I have said before the rate of increase after 2019 could be in the double digits. If you are on a Plan C or Plan F, now would be a good time to see about making the change to a Plan G, Plan N, or the not so well known, Plan D.
Please keep in mind that after 2019, Plan G will be the go-to for Guarantee Issue. Guarantee Issue is when you lose creditable coverage involuntarily and are on Medicare-you will be able to purchase a Supplemental Plan, but your options are limited.
Let’s say you are 67 and have been on Medicare for 2 years and still working. Your employer required you to enroll into Medicare and no one told you all you had to enroll into Part A. So, for two years you have had Part A & Part B and now you have decided to retire due to health reasons. Because you have been on Part B for two years, if you wish to purchase a Supplemental Plan you are going to have two options-pass an underwritten review or Guarantee Issue. Right now, you have limited options for Guarantee Issue. Plan A and Plan F are the most popular. This is one of the reasons the rate increases for these two plans are higher-because the insurance company does not have the ability to limit Guarantee Issue and the people going on to these plans through GI are going to be sicker and use the insurance more.
After 2019, Plan G will be the go to for GI, it will not happen immediately, but after a few years the rate of increase could start to be higher than they are currently, around 3-5%.
Start looking into your options, it will save you money and provide great coverage. Your doctor will still accept the Supplement, no matter the company.
If you have any questions, please give me a call and let’s have a no pressure/no obligation conversation about your current coverage and make sure it is still the right plan for you.
Thanks for your time and have a great day!
All the best,