06/17/2019
Medicare Changes in 2020
Starting in 2020, there will be no more first-dollar coverage plans available to those who are considered Medicare eligible after 2020. First-dollar coverage plans are Medicare Supplement Plans that leave you with zero out of pocket costs.
The three Medicare Supplement Plans considered first-dollar coverage plans are:
1. Plan C
2. Plan F
3. 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 since they don’t have to pay anything out of pocket at all.
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 care they need. When people don’t see a doctor, they can end up with more serious conditions down the road.
How Medicare Changes in 2020 Will Impact Beneficiaries
These changes will only impact beneficiaries who are not considered Medicare “eligible” until after 2020. As long as you turned 65 prior to 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 currently enrolled in a first-dollar coverage plan, you’ll be grandfathered in. You don’t need to make any changes to your coverage, unless you’re simply comparing benefits and/or rates to see if there’s a better plan for you.
