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2014 Medicare Supplement Insurance

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Each year the Centers for Medicare & Medicaid Services (CMS) make changes to Original Medicare that affect all Medicare supplement insurance polices – both old and new.  We highlight those changes below.

Purchasing a Medicare supplement insurance policy can be a stressful endeavor.  Using our independent insurance brokerage and the information below, you can take the guesswork out of the coverage that will best fit your needs and budget.

Like most years, the changes to Medicare are subtle and incremental. The Part A deductible has increased slightly while the Part B deductible has stayed the same. The chart below highlights the differences between 2013 and 2014.

2014 Medicare Part A and Part B Deductibles

Medicare Feature 2013 Amount 2014 Amount $$ Increase
Medicare Part B Premiums (for most) $104.90 $104.90 $0
Part A Deductible (Inpatient Hospital) $1,184 $1,216 $32
Part B Deductible (Physician’s Services) $147 $147 $0
Hospital Coinsurance Days 61-90 $296 $304 $8
Hospital Coinsurance Days 91-150 $592 $608 $16
Skilled Nursing Facility Coinsurance $148 $152 $4
High Deductible Plan F $2,110 $2,140 $30

The good news is there are no significant changes to Medicare for 2014.  Sometimes there are fears that CMS will shift more costs toward seniors, but that is not the case for 2014. This simply means that Original Medicare Parts A & B (when coupled with a good supplemental policy) will cover most if not all Medicare approved out-of-pocket costs.

Medicare Insurance Highlights

Since the changes to Medicare are minimal year over year, there is little cause for concern.  Most seniors will be happy to see that their Medicare Part B premiums have not increased.  This news is welcome relief for those on a fixed income.

High income earners who are subject to the Income Related Monthly Adjustment Amounts (IRMAA) will continue to pay higher premiums – just as before. There will be no increases to the IRMAA numbers for 2014 and they will still be assessed on a sliding income scale.

Plan G Medicare Supplement Insurance Changes

It is also important to note that the Part B deductible has not changed year over year.  In our opinion, this continues to make Plan G a very good choice for Medicare supplement insurance.  There are two reasons for this:

  1. Plan G rates tend to be much lower than Plan F – usually offering annual savings when factoring in the $147 Part B deductible amount
  2. Plan G is NOT a guaranteed issue plan.  This means there are fewer enrollees and smaller rate increases when compared to Plan F

Consumers in good health or who are new to Medicare should continue to ask about Plan G in order to save money on their Medicare supplement insurance premiums.

High Deductible Plan F 2014 Deductible Amount

HD Plan F is a popular plan for those who want a low-priced Medicare supplement policy, but are comfortable with a deductible. As indicated in the chart above, the deductible has only increased by $30 year over year.

Unlike Medicare Advantage plans, High Deductible Plan F has no network restrictions – seniors can see any doctor or hospital that accepts Medicare. Additionally, there is usually less out-of-pocket exposure with HD Plan F when compared to most Medicare Advantage plans.

In Summary

The changes to Medicare were measured and consumer friendly. These adjustments continue to make Plan G and High Deductible Plan F good choices for 2014 Medicare supplement insurance.

If you are in need of assistance with Medicare Supplement, Advantage, or Part D Drug insurance – please contact our agency and we will walk you through your options online, over the phone, and where possible in person.

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Category: Medicare Supplements, Retirement Planning