What Were the 2020 Medicare Reform Changes?
Do you have plans to purchase a Medicare Supplemental insurace policy? If so, it’s important to be aware of insurance plan changes that went into effect on January 1, 2020.
On April 16, 2015, the Medicare Access and CHIP Reauthorization Act of 2015 (MACRA) was passed, and it came into effect on January 1, 2020. MACRA prohibits first-dollar Part B coverage (first dollar means coverage of all claims without paying any out-of-pocket costs).
MACRA affects Medigap Plans C, F, and HDF, which cover the Part B deductible. Because of MACRA, these plans are no longer available to newly-eligible Medicare beneficiaries.
MACRA defines newly eligible as anyone who:
- Turns age 65 on or after January 1, 2020
- First becomes eligible for Medicare benefits due to age, disability, or end-stage renal disease on or after January 1, 2020
Those who were already enrolled in a Medicare plan before MACRA went into effect on January 1, 2020 did not need to take any action and did not lose their coverage in 2020. Those who were already enrolled in Plans C, F, or HDF before MACRA went into effect on January 1, 2020 were able to keep their guaranteed renewable coverage as long as their premiums continue to be paid on time. Moreover, they can continue to purchase Plans C, F, or HDF and are also able to buy the newly available High Deductible Plan G.
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Learn more about Medicare Supplement insurance options.
The new High Deductible Plan G replaced the High Deductible Plan F as an option for newly-eligible beneficiaries. Insurance experts predict Plan G will become an increasingly popular choice in the coming years for newly eligible Medicare enrollees that want the most coverage without surprises.
It’s important to select the best plan based on your budget, unique health needs, and state specific laws. If you have questions regarding your current coverage, please contact a licensed insurance agent or producer.