What If?

H.R. 1470 that was replaced by H.R. 2 – Medicare Access and CHIP Reauthorization Act of 2015 is now law.

What does this bill mean to you? 

One major provision of the bill will eliminate "first-dollar" coverage on Medicare supplement plans.  Specifically the law dictates that Medicare supplement plan F -  as we currently know it, will not be available for purchase in 2020 and beyond.

So, does this mean you should buy plan F now?  If you purchase prior to 2020, you will be able to keep your plan for as long as you like - they are guaranteed renewable.   But, does that make sense?  We don't think so.

Typically when a health insurance product is discontinued, the remaining book of business ages (no people turning 65 in 2020 and beyond can get in), and the aging of that book leads to higher claims experience, and that higher claims experience leads to higher premiums.    Understand, you are eligible to change from plan F to a different plan in 2020 and beyond if you are still insurable. 

What is one to do?  If you are currently enrolled in plan F, and you can medically qualify to change Medicare supplement plans, we recommend changing.     Changing now will eliminate the risk of not being able to change down the road.

Give us a call to see if you qualify.

Lonnie