Greater Focus on Medicare Plan Changes a Good Thing

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.

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