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Summary: Changes are coming to some Medicare Supplement insurance plans in 2020. Plan C and Plan F will no longer be available to new enrollees. Out-of-pocket maximums are also changing for Plan L and Plan K.
If you have a Medicare Supplement insurance plan, you should know about some of the changes coming in 2020.
New beneficiaries that are planning to enroll in a Medicare Supplement insurance plan also need to be aware of these changes. This updated information can help you make the right choices in your health care coverage for the upcoming year.
What is a Medicare Supplement Insurance Plan?
A Medicare Supplement insurance plan helps to cover costs you normally pay with Original Medicare. Those costs might include copayments, coinsurance, and deductibles. Private insurance companies offer these plans to Medicare beneficiaries who are enrolled in Original Medicare. These plans are not available to beneficiaries who are currently enrolled in a Medicare Advantage plan.
If you enroll in a Medicare Supplement insurance plan, you will pay a monthly premium for this coverage. The costs can vary, although the coverage for a specific plan will be the same. It is helpful to compare plans to find the best one for you.
If you have a Medicare Supplement insurance plan, Medicare will pay the Medicare-approved portion of your medical bill first. Your Medicare Supplement insurance plan will then pay its share
Options in Medicare Supplement Insurance Plans
Insurance companies can offer different Medicare Supplement insurance plans. Some plans are not available in every state. Plans are categorized by a letter of the alphabet, such as Plan A or Plan F. Don’t confuse these plans with Part A and Part B, which make up Original Medicare.
Each Medicare Supplement insurance plan offers the same basic benefits. Some offer additional benefits. For example, some plans cover coinsurance for skilled nursing facility care. Another benefit might be coverage for medical care if you travel outside of the United States. Some plans cover 100% of certain coinsurance and copayments, while others cover a percentage of those costs.
Medicare Supplement Insurance Plans 2020: No More Part B Deductible Coverage
Beginning in 2020, new Medicare beneficiaries will not be able to enroll in a Medicare Supplement insurance plan that covers their Part B deductible. Your deductible is the amount you pay before your Medicare coverage starts. Currently, two Medicare Supplement insurance plans pay this deductible.
The two plans that currently offer this benefit are Plan C and Plan F. These plans will no longer be available to beneficiaries enrolling in Medicare for the first time. If you currently have one of these Medicare Supplement insurance plans, you will be able to keep your plan and coverage.
In 2020, the Part B deductible will be $198. Once you pay your full deductible, you usually pay 20% of your Medicare-approved cost for medical services, durable medical equipment, and outpatient therapy. Your Medicare Supplement insurance plan will generally pay the coinsurance after your deductible is paid in full.
Out-of-Pocket Increases for Some Medicare Supplement Insurance Plans
Two Medicare Supplement insurance plans, Plan K and Plan L, have out-of-pocket maximums. Once you pay the full amount, your Medicare Supplement insurance plan pays 100% of your covered services for the rest of the year. In 2019, the out-of-pocket limit is $5,560 for Plan K and $2,780 for Plan L. In 2020, those amounts will increase to $5,880 for Plan K and $2,940 for Plan L.
The increases are based on estimates of the United States Per Capita Costs (USPCC) of the Medicare program. The estimates are determined by appropriate inflation adjustments specified by the Secretary of the United States Department of Health and Human Services.
Medicare Supplement Insurance Plans 2020: Making the Right Choice for You
In 2020, new Medicare beneficiaries will be able to choose between up to eight different Medicare Supplement insurance plans: A, B, D, G, K, L, M and N. Your specific choices will be dependent on the laws in your state and the plans offered by insurance companies in your service area.
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