Bye Bye Plans F and C Starting in 2020

medicare supplement hardin insuranceBeginning on January 1, 2020, no NEW Medicare Supplement Plan F or C policies will be available in the United States. If you currently have a Plan F or C policy—Don’t Panic! You are grandfathered in and can keep your Plan F or C as long as you like. You’ll also continue to be able to shop rates and switch to a lower cost plan of the same type after 2020 if one becomes available, even though no new polices will be written.

Why did Congress pick Plans F and C to discontinue? These are the only two Medicare Supplement (Medigap) plans that cover the Part B deductible (currently $183). The thinking is that people who have Plans C or F are more likely to go to the doctor unnecessarily (for sniffles and minor injuries) since they have no deductible to worry about. So, in the minds of the legislators, they can reduce Medicare spending by discouraging such “unnecessary” care.

For years, Plan F was the “Cadillac” of Medicare Supplements, but I’ve actually been steering my clients away from them for a while now. Rates have been on the rise and the rate at which those monthly premiums are rising is also increasing.

Instead, I routinely recommend Plan G. It is exactly the same as Plan F except for covering that $183 Part B deductible. And, Plan G premiums are significantly lower than Plan F has been, so your savings on the premium more than covers that $183.

Bottom line… If you already have a Plan F or C and want to keep it, you have NOTHING to worry about, Keep paying your monthly premiums and your plan will remain unchanged. If you have a different supplement plan, or will become Medicare eligible before January 1, 2020, and you want to enroll in a Plan F or C, you must do so before that 2020 deadline.

Questions? Let me know!

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