Medicare Supplement plans (Also called Medigap plans) have been around for many years. Plan F Supplement which is offered by a number of companies is the most popular supplement mostly because it covers 100% of medical expenses not covered by Medicare.
Utilization for people with plan F has trended much higher than that of other supplements. If someone is paying for a plan that will cover all of their Medical expenses, they are probably going to be more inclined to go to the doctor or get a test than someone who has a cost share. Given that Medicare is primary when using a supplement, people with a plan F supplement are utilizing more than someone without a plan F supplement.
At one point, I thought Medicare Advantage plans would be phased out over the next few years but now it is time to admit that I was way off. Cost share plans are the ones that will be around and it is the covered in full plan F that is going to be on the chopping block.
I predict that 2014 will be the last year that Plan F will be offered. I am sure it will be grandfathered to those that already have it but they will no longer offer it to new customers at some point in 2014.
