You may have heard about this or read something online. A lot of clients are asking us about Medigap Plan F and Plan C going away. We have a lot of people very confused because they are calling their state or have contacted the insurance company to ask questions and are being told they can keep Plan F and C and there is nothing they need to do. Well, yes & no.
What's the deal with Plan F & C?
These are 2 of the most popular plans because they provide comprehensive coverage to clients. These plans cover the Medicare part B deductible, which is no longer going to be allowed in 2020.
What's happening?
It is true that effective Jan 1, 2020, those plans will be going away. These plans, according to public law which you can download and read HERE, are being discontinued. If you are currently on one of these plans, you can keep the plan, you will be grandfathered in. However, there is a very high probability that you'll be subject to an abnormally large rate increase.
Come January 1, 2020, people aging into Medicare will not be able to enroll in Plan F or C. What's then going to happen, is over time, if you've elected to continue with those plans, the people on that plan will get older. As this population gets older and most likely claims increase, rates will increase. We've seen this happen with the Blue Cross Blue Shield Legacy plan this year.
So, yes you can continue to keep this plan, however, as rates increase you will be subject to those.
What should you do?
What we should suggest is taking a look at other plan options as soon as possible. Why? Because you can change Medigap plans at any time as long as your are healthy. If you wait until 2020, you may not qualify to switch Medigap plans. You DO NOT have to wait until Open Enrollment.