I hope all is going well in your part of the world. I thank you for taking the time to read this blog. I wanted to touch on a Plan that has kind of been dormant for a while but is going to start to make a comeback, Plan D.
Plan D is not to be confused with Part D the drug coverage for Medicare. Plan D is a Supplemental Plan that works with traditional Medicare, Part A & Part B. It is the mixture of Plan G and Plan N.
Plan D will cover all of Part A, no deductible or daily co-pays. You will still have the additional 365 days of inpatient coverage. You will also get 100 days of Skilled Nursing Facility.
If you are enrolled in a Plan D you will be responsible for the Part B deductible, $183.00 for 2017. You will not have any co-pays when you go to the doctor or to the emergency room. So this is how it is similar to Plan G.
Now Plan D will not cover the Part B excess. This is the 15% that a doctor can charge above the Medicare-approved cost. The most recent study shows that only 5% of the doctors charge the excess. They are out there but not as common. This is how Plan D is similar to a Plan N without having the co-pays.
Here is where Plan D is going to explode in the coming years:
Plan G is going to replace Plan F as the preferred Plan for Guaranteed Issue. Guaranteed Issue, or GI for short, is when someone has Medicare but use a work plan as a Supplement. When they quit work and lose their work coverage, for the first 63 days the can enroll into Supplement under GI. Right now GI options are limited to Plan A, C, or F. These Plans have a larger rate of increase than the other options Plan G or Plan N.
After 2019 Plan G will replace Plan F as the GI preferred plan. It will not happen right away, but after a few years after Plan F goes away then we could be looking at a higher rate of increase. I am not trying to scare you I am just stating facts and looking at what is going on in the market. As time goes on Plan D is going to be a more viable option for a lot of people.
If you have any questions please give me a call or shoot me an email.
Wishing you all the best I am,
Randall J. Lawson
The HgO Group
National Producer Number #9276045