On January 1, 2020, it became official that Medigap plans C and F were discontinued for new enrollees. The reasons behind the discontinuation have to do with the 2015 Medicare Access and Re-Authorization legislation, which stated that no Medigap plans are allowed to cover the deductible for Medicare Part B.
Why the Discontinuation?
Legislation is concerned that because beneficiaries on Medigap Plans C and F are not paying for their Part B deductible, seniors are visiting their doctors more than necessary, costing the program money. They believe that without plans C and F covering the deductible, beneficiaries will be more choosey about when to see their doctor.
What Does This Mean For You?
As an agent, you are aware that Medigap Plan F was one of the most popular plans sold due to its high coverage. Because of the discontinuation, your current clients may be nervous about what it means for them. You can assure your clients that if they already have either of these 2 plans (or the high deductible version of Plan F), or are covered by one of these plans before January 1, 2020, they’ll be able to keep the plan. Additionally, if a client was eligible for Medicare before January 1, 2020, but not yet enrolled, they may be able to buy one of these plans.
Do not pressure a client to switch plans. If you do so, you will not only be violating the states’ unfair trading law, but also Medicare’s Supplement Insurance law.
You may also have to field many questions from new clients that do not know about the discontinuation of Medigap Plans C and F. To assure them of their options, inform them that Medigap Plans D and G are replacement plans with great benefits.
- With these plans, beneficiaries will be required to pay their Part B deductible.
- After the deductible has been met, Plans D and G will cover the part A deductible, part B coinsurance, and other benefits.