Medicare has recently passed and will implement the following changes to Medicare supplements June 1, 2019:
Plans E, H, I, and J will cease to exist. These plans will not be provided by any insurance company after June 1, 2019. Yet, if you are currently enrolled in Plans E, H, I, or J, then you can be “grandfathered” in to retain the policy. Please keep in mind that some insurance companies will let you convert your coverage to one of the new “modernized” Medicare supplement policies. This may be a good opportunity as there could be higher renewal premiums for E, H, I, and J in the future caused by the lack of premiums from new recipients of that coverage. If you wait to convert beyond the allotted time period, then you may need to go through medical underwriting and thus risk decline.
Plans M and N will be introduced. Medicare supplement insurance Plans M and N will have lower monthly premiums in exchange for higher out of pocket payments for medical expenses. For instance, Medicare supplement Plans M and N will not cover the Part B deductible or Part B excess charges. Plan M will cover half of the Part A deductible, while Plan N will cover all of the Part A deductible. Plan N also will have instances in which co-pays will be required. Plans K, L, M and N could be suitable low cost alternatives to Medicare Advantage Plans (minus the prescription drug coverage.)
New Medicare supplement policies will issue with lower premium rates. An advantage associated with this Medicare modernization should be lower monthly premium rates for those who choose a conversion plan who are healthy (enough to pass medical underwriting qualifications.) As new plans are introduced they nearly always offer lower rates as there are no claims associated with them. New risk pools equal lower rates.
In contrast to all the aforementioned changes, Plans A, B, C, D, F, G, K and L will have nearly the same benefits as before with Plan F being the most comprehensive.
For more information, please be sure to do your research and contact a trusted Medicare supplement agent.