Many changes are coming to Medicare in 2020. These changes will impact all current and future Medicare beneficiaries. Below, we’ll review all of these changes to keep you informed regarding your Medicare benefits.
Medicare Changes in 2020
In 2020, there will be no more first-dollar coverage plans available to those who are Medicare-eligible after 2020. First-dollar coverage plans are Medicare Supplement Plans that leave you with zero out of pocket costs. The Medicare Part B premium will also be increasing.
The three Medicare Supplement Plans considered first-dollar coverage plans are:
- Plan C
- Plan F
- High Deductible Plan F
Why First Dollar Coverage Plans are Being Discontinued
The Medicare Access and CHIP Reauthorization Act of 2015 eliminates all Medigap Plans that cover the Medicare Part B deductible.
The reason for the change is due to some members of Congress believing Medicare beneficiaries are over-using healthcare services.
With no out of pocket costs, playing it safe was priceless.
By making everyone meet the Medicare Part B deductible, legislators hope to prevent beneficiaries from running to the doctor for every minor ailment.
Critics argue that the deductible may keep people from getting the care they need.
When people don’t see a doctor, they can end up with more serious conditions down the road.
Medicare Premiums for 2020
CMS officially announced the increases, and it looks like the 2020 Medicare Part B premium will be $144.60. That’s an increase of $9.10 from 2019.
For those that collect Social Security or Railroad Retirement Benefits, this amount will be automatically deducted from your monthly benefits check.
Medicare Part B Deductible 2020
The Part B deductible in 2020 is going to increase from $185 to $198. That’s a $13 increase from the previous year.
How Medicare Changes in 2020 Will Impact Beneficiaries
These changes only impact beneficiaries who are not “Medicare-eligible” until after 2020. As long as you turned 65 before January 1st, 2020, you can continue to enroll in these first-dollar coverage plans after they have been discontinued.
They’re only being discontinued to those who are not considered Medicare eligible until AFTER 2020.
For those with a first-dollar coverage plan, you’re able to remain on that plan. You don’t need to make any changes to your coverage unless you’re merely comparing benefits and rates to see if there’s a better plan for you.
Even if you’re Medicare-eligible before 2020, but don’t enroll in Medicare Part B for one reason or another until after 2020, you can still join in a first-dollar coverage plan to supplement your Medicare benefits.
Again, as long as you’re Medicare-eligible BEFORE 2020, you can still sign up for a first-dollar coverage plan after they’re discontinued.
For Those “Medicare-eligible” After 2020
For beneficiaries that are not eligible for Medicare until after 2020, you still have alternatives that will keep yours out of pocket costs low.
The only difference between the alternative plans listed below and first-dollar coverage plans is the Part B deductible, which is $198 for 2020.
Alternatives to First-Dollar Coverage Plans
One good thing about Plan N is that if you go to urgent care, vs. your primary care physician or emergency room, there is no co-pay.
Another alternative to Plan C is Plan D. Plan D offers the same protection as Plan C, except for covering the Part B deductible.
If you don’t want the co-pays that come with Plan N, then Plan D is the way to go. Nither Plan D or Plan N covers excess charges. If you want coverage for excess costs, you would want to go with Plan G.
This plan covers virtually all your medical and hospitalization costs, including excess charges. Plan G is already a popular plan because it offers excellent coverage with a much lower premium than Plan F.
Plan G is useful if you want a full coverage policy at a lower premium. Once you meet the annual Part B deductible, you shouldn’t have any further expenses for services covered by Medicare.
Plan N is the right choice if you’re looking to save money on premiums, don’t mind a small copay, and aren’t concerned about excess charges.
Excess charges aren’t allowed in some states, and even where they’re permitted, not all providers charge them. Only 3% of providers charge excess fees.
Plan D and Plan G Will be Guaranteed Issue Plans Starting 2020
Another important fact, MACRA is making both Plan G and Plan D Guaranteed Issue (GI) plans for “newly-eligible” Medicare beneficiaries who are not able to sign up for Plan C or Plan F.
Remember, if you’re Medicare-eligible before 2020, then you won’t be given GI for Plan D and Plan G. However, you’re still eligible for GI with Plan C and Plan F.
New High Deductible Plan G Coming in 2020
Even though Medigap Plan F High Deductible is not a first-dollar coverage plan, it’s being discontinued since it’s a plan that falls under Plan F.
The good news is, there’s a new high-deductible plan coming in 2020, High Deductible Plan G. The deductible will be $2,340 for the year.
In 2020, any beneficiary can sign up for High-Deductible Plan G, regardless if they’re “Medicare-eligible” before or after 2020. However, it won’t be available until 1/1/2020.
Compare Medicare 2020 Rates
At MedicareFAQ, our mission is to help you find the best Medicare coverage at the best price. We strive to keep our clients informed on any changes regarding their Medicare benefits.
Trump’s executive order to protect and improve Medicare could mean more affordable plans for seniors.
Let us research the top insurance companies in your area to find you the best rates on Medicare Supplement policies. Whether you’re inquiring for yourself or a loved one, our services are 100% free. Give us a call or fill out our rate comparison form to get started.