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, but 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 sick people, therefore raising its rates faster. MACRA loomed, forcing carriers to bring out competitively priced Plan G’s 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.