After signing up for Original Medicare Part A and B, many people also choose Medicare Supplement Plan, also known as Medigap to cover the cost of Medicare, such as co-insurance, co-payments and deductibles. About a fifth of Medicare beneficiaries age 65 acquired a Medicare supplement directive in 2010; so reports the Kaiser Family Foundation (KFF).
Out of the over 400,000 beneficiaries included in the Medigap in 2010, over half of them had either Plan C or F, as reported by KFF. Out of the ten complementary Medicare plans available in most states (A, B, C, D, F, G, K, L, M, N), Plan C and Plan F are the only two complementary plans of Medicare available Part B coverage of Medicare deductible. Plan F is one of the most complete Medicare supplement plans available. In addition to the Part B deductible, it also covers:
- Medicare Part A Deductible
- Medicare Part B in excess
- Part A Hospital costs and co insurance cost about 356 days after Medicare benefits have run out
- Part B coinsurance or additional payment
- The first 3 pints of blood used in an approved medical procedure (annually)
- Part A Hospice or coinsurance
- SNF Insurance (Specialized Nursing Facility)
- Emergency medicine for trips abroad (80% up to the limits of the plan)
Among the standard Medicare supplement plans, Plan F may have the lowest cost of Medicare expenses and possibly the easiest way to budget for your health care expenses.
Will the Medicare F Supplemental Plan be suspended?
Access to Medicare and the 2015 CHIP Reauthorization Act (MACRA), passed by Congress and enacted on 16th April, 2015, has modified the law in several areas of health care, which include some Medigap plans.
The new law requires that beginning January 1, 2020, a Medicare supplement policy that covers the Part B deductible cannot be sold or issued to a newly registered Medicare beneficiary. This means that people who have a birthday on December 31, 1954 (65 years on December 31, 2019) may be the last group to enroll in the Medicare Supplemental Plan. You can not sign up for the Medicare supplement after January 1, 2020. Plan C is one of the following alternatives to plan F, because it also covers the deductible of Part B. If you have Plan F already, you can hold on to it. The law only affects new entrants.
The good news for participants who buy a Medicare Supplemental Plan after January 1, 2020 is that the Part B deductible, which is not included in their plan, is not among the largest health care costs in the world of Medicare The deductible for Part B will be $ 183 per year in 2018. The deductible for Part A is about seven times more than that amount. Nearly all standard Medigap plans present in many states, apart from Medicare Supplemental Plan A, can still cover at least 50% of the Medicare Part A deductible, which will be $ 1,340 for each period of service in 2018.
If you cannot enroll in either Plan F or Plan C, you may consider purchasing the Medicare Supplemental Plan G, as it covers all Plan F plans except the Part B deductible.