If you’re an agent who writes Medicare Supplements, you might want to lift your head up and survey the landscape.
Some fairly major changes are looming as elderlawanswers.com points out here: http://www.elderlawanswers.com/congress-schedules-end-to-insurance-coverage-of-medicare-part-b-deductible-15094 and it’s going to in all likelihood affect your clients.
If your clients are like the majority, they’re utilizing the popular Plan F which – for a relatively low premium – covers all medical expenses including Part A and Part B deductibles. For reasons that the article explains far better than I, Center for Medicaid Services is phasing that out as part of a plan to fund the doc fix bill that overhauls the way Medicare pays docs and that is expected to cost $200 billion over 10 years.
That means that new clients need a home that has a chance to be permanent and older clients will likely see rates begin to move on existing Plan Fs. Why not Plan G?
The only difference between F and G is the $166 deductible for Part B. And right now, the premium savings more than offset that small deductible.
And there are other ways to attack the problem as senior65.com notes here: https://www.senior65.com/medicare/article/3-medigap-plan-f-alternatives and here: http://www.fool.com/retirement/general/2016/04/23/3-reasons-original-medicare-may-be-right-for-you.aspx .
This article from the Steel City offers some interesting perspective on the options and why decisions are made: http://www.post-gazette.com/business/healthcare-business/2016/04/26/New-enrollees-rethinking-Medicare-Advantage-option/stories/201604260015
It’s getting more complicated in this sector but thankfully, there are plenty of resources to help.