Medicare change 2020
As you know, most years the CMS makes some changes to Medicare. We will try and explain the Medicare change 2020.
Medicare has discontinued first dollar plans starting 1/1/20.
This means that any person who becomes eligible for Medicare In 2020 will not be able to purchase a First-dollar Medicare Supplement plan. These plans leave members with no out-of-pocket costs. This includes the cost of Medicare Part B deductible. There are 3 Medicare supplements that fall into the first dollar plan category and they are; Plan C, Plan F as well as High deductible F.
Although , High Deductible F is not a first-dollar coverage plan, It falls under Plan F and therefore, it is being discontinued.
Because some members of congress thought that Medicare beneficiaries were using healthcare services too often:
The Medicare Access and CHIP Re-authorization Act of 2015 was put in place. The Re-authorization act eliminates any Medigap Plan that covers the Medicare Part B deductible. This is meant to save the government some of the expense of Medicare.
Making everyone meet the Medicare Part B deductible, will prevent some beneficiaries from visiting the doctor for every little ailment.
On the other hand, some critics think that the deductible will keep people from getting needed care. This could result in a minor problem turning into something more serious.
The first dollar plan changes will only effect those individuals who reach Medicare eligible age starting 1/1/20. If you are Medicare eligible before that date, but did not sign up for Medicare Part B yet, you are still able to join a first dollar plan, although they are discontinued for anyone who reaches eligibility age on or after 1/1/20.
Medicare change 2020: Low out-of-pocket plan choice options for Medicare eligible individuals in 2020:
Anyone who is not eligible to collect Medicare until after 1/1/20 will have access to alternative plan choices that will keep their out-of-pocket cost down. There is only 1 difference between the first dollar coverage plan choices and the following options; that is that client’s will have to pay the Part B deductible ($198 in 2020).
There are a couple good alternatives to the Plan C. The first is the Plan N, this is a cost sharing plan. In other words, if you visit your doctor, you can have a co-pay of up to $20 per visit. If you go to the emergency room, your co-pay can be up to $50. The good news is; if you have a plan N and visit urgent care instead of your primary doctor or the emergency room, you will not have to pay a co-pay. This is a great option if you want a low premium and don’t mind paying possible excess charges.
Please note; certain states do not allow excess charges. Only a small percentage of providers charge excess fees and many providers will not charge them even when they are permitted to.
The other alternative to Plan C is called Plan D. Plan D offers clients the same coverage as Plan C with the exception of the Part B deductible. If you do not want to pay co-pays for doctor visits, you should consider opting for plan D. Unfortunately, neither Plan D nor Plan N cover excess charges.
There is a plan available that will cover the excess charges. That plan is Plan G.
Plan G is a good alternative to Plan F. If you choose Plan G you receive the same coverage that you would receive with a Plan F aside from the payment of the Part B deductible. This plan is a great option because, it covers almost all medical and hospital costs. That includes excess charges. This plan, Plan G, is being chosen quite often due to the excellent coverage and lower premium.
With a Plan G, after you have met the Part B deductible, all your approved Medicare expenses should be fully covered.
There will be a new High deductible Plan G available in 2020.
The high deductible Plan G will have a low premium and the annual deductible will be $2,340. All Medicare beneficiaries are eligible for the High Deductible Plan G no matter when they qualify for Medicare benefits.
Good news for people eligible on or after 1/1/20; both Plan G and Plan D will be guaranteed issue.
MACRA has made Plan G as well as Plan D Guaranteed Issue for Medicare beneficiaries who are eligible for benefits on or after 1/1/20. If you are eligible for Medicare benefits before 2020, you will not be Guarantee Issue for these plans. You are however guaranteed issue on both Plan C and Plan F. (Limited to certain situations however)
Medicare Premium increases for 2020:
The Medicare Part B 2020 premium increase has been announced by CMS. For 2020, the Medicare Part B premium has been raised by $9.10 from 2019. The new cost is $144.60. Anyone who collects either Social Security or Railroad Retirement benefits will automatically have the cost deducted form your monthly benefit check.
Medicare Part B Deductible increase for 2020:
Starting on 1/1/20, the Medicare Part B deductible will increase from $185 to $198. This means, the deductible has gone up $13 from last year.
The Part A deductible will also be raised from $1,364 to $1,408 this year. That amounts to a$44 increase. Most beneficiaries do not pay a Medicare Part A premium. They do however, have to pay the deductible.
Medicare Advantage Changes 2020:
This year there will be a few changes to Medicare Advantage plans. They will be offering some additional benefits in 2020 that include; adult daycare, transportation and telehealth as well as home health benefits and meal delivery.
Would you like to offer these plans to your clients?
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Please contact our office if you have any questions. You can reach us either by phone at (203)796-5403 or by email at teal@croweandasssoicates.com.
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