Insurance companies are now offering a new Medigap policy and it’s High Deductible Plan G. This new Medicare supplement will be available for sale starting January 1, 2020.
As part of the recently passed MACRA legislation, all plans that cover the Part B deductible will be discontinued for those who are newly eligible for Medicare in 2020. This includes Plans F, C and High Deductible Plan F. The replacement for HD Plan F is going to be High Deductible Plan G.
The first thing will be low rates. HD Plan F already offers some of the lowest rates of all supplement policies, and most High Deductible Plan G Medicare supplement quotes will be even lower. Depending on your age, where you live, and any household discounts, most plans will be around $30 a month. That’s the lowest you can find for any supplement.
And of course, there will be an annual deductible to meet as well. In fact, there will be two. The first would be the Part B Deductible ($198 in 2020) and the second will be the actual High Deductible itself. For HD Plan F, that amount is $2,340 for 2020.
These numbers move with inflation, and inflation has been tame, so I would not expect them to increase much.
The question is whether owners will be required to meet two deductibles with this new version of Plan G. The answer we’re hearing is, no. In other words, you’ll be working off the overall deductible while meeting the smaller Part B deductible.
For example, if you’ve met the $198 Part B deductible, then that amount would count towards and lower your High Deductible from $2,340 to $2,142 for the year.
It should also be noted that one of our HD Plan G carriers offers a deductible waiver if you enroll mid-year. If you enroll in July (or after) your deductible would be reduced by $760. This provides a strong incentive for those who might want to change sooner than later.
They are certainly a good choice for savings. Between your Part B premiums, a Supplement and a Part D drug plan, you can have significant monthly insurance outlays. This is especially true if you’re in a higher income bracket and assessed an IRMAA charge. Keeping your Medicare supplement premiums below $50 a month can help when you’re on a fixed income.
The other advantage to almost all Medicare supplements is that you can see any doctor or hospital that accepts Medicare. There are no networks to worry about. That’s not necessarily the case with many Medicare Advantage plans.
But once you choose a Medicare Supplement (like High Deductible Plan G), it can be difficult to change to a more comprehensive plan later. For most, you only get your one Open Enrollment (6 month) window when you’re new to Medicare Part B to purchase any plan you want.
After that, you’ll likely need to pass medical underwriting to switch to a new one. This means you can be turned down – even if it’s the so-called Open Enrollment window in the fall (AEP) each year. So you want to choose wisely at onset as you there are usually guarantees for future changes.
Come 2020, there will be several companies offering High Deductible Plan G policies. Aetna, Cigan, Humana, Medical Mutual of Ohio, Mutual of Omaha, United American and several others will all be active in this market.
If you want to compare all plans and premiums at once, then you’re in the right place. Hyers and Associates in and independent insurance brokerage and we represent all companies direct to you – at no additional cost. Contact us today to learn about your best Medigap options.
Category: Medicare Supplements