Plan N Could Become the New Best Policy With Lower Rate Increases
Plan N could become the new best policy option in 2020, with a lower rate increase than other plans. The big changes to the Supplement plans, starting as early as next year will impact those who are new-to-Medicare after 2020.
Meaning, Plans C, Medigap F, and High Deductible F will no longer be an option for those eligible for Medicare after January 1, 2020. However, individuals eligible for Medicare before this date will be grandfathered into those coverage options.
If beneficiaries choose, they may keep this coverage for as long as they like. Medicare Supplement Plan N has the lowest premium cost when comparing to Plan F and Plan G. However, the difference between Plans N and G may be very little.
One example, beneficiaries may save an average of $10 a month between Plans N and G on premiums alone. Although, the savings between Plans N and F are about $40 a month, on average.
Plan N Could Become the New Best Policy
No need to worry, Plan N may be the next best option for coverage! This option for coverage may be the new best policy with lower increases in their rates compared to other plans. Both Plans G and N are expecting to flourish starting in 2020 and continuing in the years after.
The anticipation of Plan N being the best policy option for beneficiaries is due to the (fairly) normal cost-sharing amount for members. Enrollees can expect to pay $20 copayments for regular office visits and copayments of $50 for trips to the emergency room when no hospital admission occurs.
Additionally, beneficiaries don’t pay a copayment for Urgent Care Facilities since those services don’t fall under an office visit or a hospital visit.
As all standard Medigap plans will eventually increase their rates over time, certain factors may affect these rates increases. Plan N may have the lowest of all rate increases than the other policy options because this policy is only Guarantee Issue when beneficiaries age into Medicare. So, if a beneficiary loses creditable coverage at age 70, the Plan N won’t be Guarantee Issue.
Although, it’s important to understand that Medicare Supplement rates rise with age, inflation, insurance company policy reasons, or all three. The “best Medicare Supplement” plan is subjective to the client’s healthcare coverage needs as well as their budget.
However, Plan N makes sense for both short and long term
Medigap Plan N Excess Charges
One major issue with Plan N is the excess charges that the policy doesn’t cover. Unlike Plans F and G, excess charges aren’t something Plan N covers. While this may be a downside to Plan N, beneficiaries must know most providers accept Medicare assignment and participate in the program.
Beneficiaries can easily avoid any excess charges by asking their healthcare provider if they accept Medicare assignment prior to their office visit.
The Mayo Clinic is a facility that is well-known for not accepting Medicare assignment. However, patients should ask their provider before a visit to be sure.
GI Changes with Plan G
Plan G is going to become a Guarantee Issue policy for beneficiaries eligible for Medicare in 2020; meaning, more sick people can acquire this coverage in the future. The rate increase will reflect those claim increases. More competitive rates are seen because Plans D and G are becoming the new Guaranteed Issue (GI) plans for newly eligible beneficiaries.
For beneficiaries eligible before 2020, Medigap Plans F, C and High Deductible Plan F will be available when losing creditable coverage. These beneficiaries won’t be eligible for Guarantee Issue with Plan D or G.
When enrolling at 65 then plan will have no medical underwriting; yet, rates will increase. This means the premiums become higher.
Now, individuals eligible for Medicare prior to January 1, 2020, may always purchase a Plan F policy now or in the future. This means over 60 million Americans will be eligible for enrolling in Plan F.
As Plans D and G become GI plans and rates increase, those 60 million+ people eligible for Plan F may decide to enroll. Plan F could those eligible with pre-existing conditions.
However, for beneficiaries new to Medicare, Plan N could be the best policy because its an opportunity to offer lower rate increases than other plans on the market post-2020. Additionally, the low premiums and small out of pocket expenses.
High Deductible Plan G
The introduction of High Deductible Plan G is coming in 2020 due to the high deductible plan F going away. Both new and old beneficiaries may enroll in the High Deductible Plan G option. However, this plan may be a bit different.
The standard $2,000+ deductible cost in addition to the Part B deductible is a requirement for enrollees of this plan. However, in most situations, the Part B deductible may apply towards the $2,000+ the high deductible.
So, for many beneficiaries, only one amount must be met before coverage will apply. However, if the high deductible is only met for Part A costs, the beneficiary is still responsible for the Part B costs. Although, this should only occur under rare circumstances.
Once it’s on the market, High Deductible Plan G will likely be a popular seller. The low premiums, coverage options, and provider freedom make this plan a great option for beneficiaries.
Plan F Rate Increases
Medigap Plan F has a higher rate increase and it’s still on the marketplace until the end of the year. However, enrollees must be eligible for Medicare BEFORE January 1, 2020, to join Plan F.
Certain states have specific rules about their rate increases. One example; Medicare supplement insurance companies may not increase rates due to age in Arizona.
For those with supplement Plan F residing in Arizona, this is a good thing. However, the state you live in, your policy, and the company you receive coverage from will determine the increase amounts.
The main reason for Plan F raising its’ rates is due to the lack of new enrollees. Fewer people enrolling means fewer sales for that plan.
Likewise, Plan F will need to raise the rates of coverage to continue providing benefits to members. Beneficiaries who have or continue to keep Plan F coverage can expect rate increases by 2021 due to the lack of new business.
It’s possible that Medigap Plan N will become the best policy after 2020, simply because of the lower rate increases that make the coverage a better long term option.
To Get Help With Plan N Rates
Still unsure what the most comprehensive and budget-friendly plan is for your healthcare needs, don’t worry – you’re not alone! Our team of Medicare agents will happily compare rates, look at plans and provide beneficiaries (future and current) with all the information needed to make the right decision.
Eligibility can be a tricky thing to figure out along, especially if you’re not a Medicare expert. Our brokers have extensive training in identifying coverage options for clients.
This means you save time and money by allowing our professionals to walk you through the process.
Health-care coverage can be a hassle, but it doesn’t have to be! Give us a call at the number provided above to discover if Plan N is the best policy for you, or fill out an online contact form here.