Changes to Medicare Supplement Insurance Plans 2020: Three Changes You Need to Know
Summary: Here are the three changes to Medicare Supplement Insurance plans in 2020:
- Medicare Supplement Insurance Plans in 2020 cannot pay your Part B deductible.
- A new high deductible Plan G will be available.
- Lastly, the out of pocket maximums for Plans K and L will increase.
Medicare Supplement insurance (Medigap) Plans are popular with people who choose Original Medicare. According to America’s Health Insurance Plans (AHIP), over 13 million Medicare beneficiaries are covered by Medigap plans.
If you’re preparing to enroll in Medicare and worried about your out-of-pocket costs, you’ll want to know about changes to Medicare Supplement Insurance Plans in 2020 that may affect you. These are the three major changes you should know about before you enroll.
Medicare Supplement Insurance Plans 2020 cannot pay your Part B deductible
This is one of the biggest changes going into effect in 2020. Medicare Supplement Insurance Plans C and F are two of the most popular plans because they offer first-dollar coverage—they pay 100% of your Part A and Part B deductibles. Unfortunately, when Congress reauthorized the Medicare program in 2015, the legislation passed phased out Medicare Supplement Insurance Plans that covered the Part B deductible effective January 1, 2020.
If you buy either Plan C or Plan F prior to that date, you’ll be allowed to keep your plan after the new rule goes into effect. In some cases, you may even be able to buy a plan after the effective date if you became eligible for Medicare prior to December 31, 2019, but haven’t yet enrolled. If you become eligible after that date, these two plans won’t be available due to Medicare Supplement Insurance Plan C and Medicare Supplement Insurance Plan F changes in 2020.
The good news is that Plan G will still be available. Medicare Supplement Insurance Plan G has the same comprehensive coverage for your Part A and Part B out-of-pocket costs, except it doesn’t pay your Part B deductible.
A new high-deductible Medicare Supplement Insurance Plan G will be available
Some people like to lower their monthly premiums by choosing a high-deductible Medicare Supplement Insurance Plan. Plan F had a high-deductible option, but changes to Medicare Supplement Insurance Plans in 2020 mean even the high-deductible Plan F is going away.
For that reason, the Centers for Medicare and Medicaid Services authorized a new high-deductible Plan G option. The new plan will be available as of January 1, 2020, and anyone eligible for Medicare can apply.
Although the new high-deductible Plan G can’t pay your Part B deductible, money you spend on your Part B deductible can be applied to your Plan G deductible.
The out-of-pocket maximum for Plan K and Plan L will be higher
In 2019, the out-of-pocket maximum for Plan K is $5,560, and for Plan L, it is $2,780. As part of the changes to Medicare Supplement Insurance Plans in 2020, these limits will increase to $5,880 for Plan K and $2,940 for Plan L.
Plan K and Plan L cover 50% and 75% respectively of your Part B coinsurance, Part A deductible, and Part A hospice and skilled nursing facility coinsurance amounts. Once you reach the out-of-pocket maximum, however, these plans pay 100% of your qualifying Part A and Part B expenses.
If you live in one of the three states that standardize Medicare Supplement Insurance Plans differently (Massachusetts, Minnesota, and Wisconsin), there may be additional changes to Medicare Supplement Insurance Plans in 2020. Contact your state’s health insurance assistance program, or SHIP, for specific information.
If you already have Medigap coverage with Plan C or Plan F, the new changes typically won’t affect you. However, if you’re shopping Medicare Supplement Insurance Plans 2020, you’ll need to carefully consider your options before you buy a plan.