Medicare Supplement Changes

MACRA stands for the Medicare Access and CHIP Reauthorization Act of 2015, and it does three things: Change payment systems for doctors, enhances security, and changes the Medicare supplement plan offering for those “newly eligible” for Medicare starting January 1, 2020.  These plan changes take effect January 1, 2020.

One of the most talked about changes is that those that are eligible for Medicare after January 1st will not be able to enroll on a supplement that pays the Part B deductible.  These plans are: Plan C, Plan F or High-Deductible Plan F.  Any one currently enrolled on one of these plans will NOT need to change plans.  Similarly, someone that was eligible and enrolled on another plan will still have the option to enroll on one of these plans after January 1, 2020.     

What does “newly eligible” mean?
“Newly eligible” are those who:

  • Have attained age 65 on or after January 1, 2020
  • First become eligible for Medicare due to age, disability, or end-stage renal disease, on or after January 1, 2020

What if I am already on one of these plans?
Those that became eligible for Medicare prior to January 1, 2020, may continue to keep or even purchase plans that cover the Part B deductible. NO ACTION IS NECESSARY ON YOUR PART. Your plan will not change or go away. If you are on a plan that covers the Part B deductible today you can keep the plan you are on now.

What if someone became eligible for Medicare prior to January 1, 2020, and wants to purchase a Plan F for a January 1, 2020 effective date?
Individuals are eligible to continue to enroll in a Plan C, F, or F(HD) after January 1, 2020, if they became Medicare eligible prior to January 1, 2020.
For individuals who will be “newly eligible”, what plan options will they have?
Currently, the closest substitute for Plan F is Plan G, which is already becoming a very popular choice for many Medicare-eligible individuals. The only difference between the two plans is coverage of the Part B Deductible, which is $185 for 2019.