Plan F is no longer available for newly eligible Medicare beneficiaries.You think that MACRA is easy. You think that Plan F is gone from your portfolio, but it’s not! Plan F is the new Plan G. That will make sense by the end of this post, stay with me. Plan F was guaranteed issue and Plan G was not. Retirees losing their group health plan were not able to get a Plan G unless they qualified with their good health. That protected Plan G’s rates. Plan F got more of the sick people, therefore its rates went up faster. MACRA loomed so carriers brought out competitively priced Plans G to entice business away from Plan F.
Now that 2020 is here, Plan G will take in more sick people and see higher rate increases.
Only healthy people will be able to qualify for a Medicare Supplement Plan F, which will make it feel like the old Plan G. Is your MAPD plan exiting the state? You can get a Plan G, but not a Medicare Supplement Plan F. Losing your group coverage? You can have Plan G without answering any health questions, but Plan F only if you are healthy. The common thought is that Plans F will no longer be sold is false. Carriers are poised to bring out new Plans F to entice the health Medicare beneficiaries that are still eligible for Plan F to change carriers. You love the first dollar benefits of your current Plan F? Why not move to our Plan F at a lower rate! Same benefits, lower rate, and the agent gets a happy client.
There are millions of people eligible for Plan F prior to 2020 that will always have the option to move to a NEW Plan F!
For those who are Medicare-eligible on or before December 31, 2019, their Medicare options REMAIN THE SAME. They can purchase a plan that covers the Part B deductible (Plans C, F, and High Deductible F). This sounds foreign but makes sense if you think about it. Carriers still have a large pool of prospects who could pass underwriting and purchase a Plan F. It will all come down to the rates and rate stability! Expect to see some very competitive, new Plans F coming to market in 2020 on our free Medicare quote engine. Plan D will pop back up (last seen about 10 years ago!) as one of your go-to plan options. See Aetna’s MACRA at-a-glance here.
Sylvia Gordon and her sister, Rebecca, run Gordon Marketing, one of the nation’s largest Medicare FMO/NMA offices. They have a team of over 100 that train and support independent insurance agents in all 50 states. You can find Sylvia’s weekly posts on LinkedIn and the sisters Youtube channel posts 2 training videos each week. Contact Sylvia at firstname.lastname@example.org or 800-388-8342.