The Medicare Access and CHIP Reauthorization Act of 2015 (MACRA)

Changes to Medicare Supplement policies (also known as Medigap) go into effect on January 1, 2020, nearly five years after the bipartisan legislation known as MACRA was signed into law.

In addition to creating a Quality Payment Program and removing Social Security numbers from government-issued Medicare cards, MACRA authorized the following changes to Medigap:

• Medigap plans are prohibited from providing first dollar coverage of the Medicare Part B deductible for newly eligible Medicare beneficiaries on or after January 1, 2020.  Since Medigap Plans C and F traditionally have included coverage for 100% of the Medicare Part B deductible, these two plans no longer will be available to newly eligible beneficiaries.

• Newly eligible beneficiaries who will not be able to purchase Medigap Plans C and F include those turning age 65 on or after January 1, 2020 and anyone gaining eligibility for Medicare benefits due to disability or End-Stage Renal Disease on or after January 1, 2020.

• Plans C and F are NOT being discontinued.  Medicare beneficiaries currently enrolled in either Plan C or Plan F will retain access to their plan; additionally, all beneficiaries who became eligible for Medicare prior to January 1, 2020 still have the option to purchase either plan.

• For newly eligible beneficiaries, Plans D and G are available and feature similar health benefits to Plans C and F except for 100% payment of the Medicare Part B Deductible.

• Medigap Plan G will now have a “High Deductible” option, since Medigap Plan F has a High Deductible coverage option and can no longer be purchased by newly eligible Medicare beneficiaries.  Under the new Plan G High Deductible option, the Medicare Part B deductible is paid by the Medicare beneficiary and counts toward the plan's deductible amount.

Until next time,

Andrew Herman, President

AH Insurance Services, Inc.