Summary:  Changes are coming to Medicare Supplement insurance plans in 2020. Plan F will no longer be available to new Medicare beneficiaries. Other plans will still be offered to allow beneficiaries to match their needs and budget.

Medicare Supplement insurance plans offer coverage for out-of-pocket expenses you pay with Original Medicare.

There are different Medicare Supplement insurance plans to choose from, depending on where you live. The 8 Medicare Supplement plans available to new beneficiaries in 2020 are: A, B, D, G, K, L, M, and N. 

What is a Medicare Supplement insurance plan?

A Medicare Supplement insurance plan, also known as Medigap, helps beneficiaries cover some of the costs not included with Original Medicare. These expenses might include copayments, coinsurance and deductibles. Private insurance companies approved by Medicare can offer these plans to beneficiaries enrolled in Original Medicare. The plans are not available for beneficiaries with a Medicare Advantage plan.

Medicare Supplement insurance plans generally only cover the costs of Original Medicare. They do not typically offer extra benefits like vision or dental care. Some provide coverage for medical care if you travel outside the country. Once you enroll in a Medigap plan, you are able to renew it every year if you choose. A plan cannot cancel you or charge you more if you develop health problems.

Medicare Supplement insurance plans are labeled with a letter of the alphabet. All Plan A Medicare Supplement insurance plans will offer the same basic benefits, but the cost might vary. It is helpful to compare these plans to ensure you enroll in the one that fits your needs and budget best.

Features of Medicare Supplement insurance plan F

Medicare Supplement insurance Plan C and Plan F are the only two plans that cover the Part B deductible. Plan F is also available in a high-deductible option. If you have this plan, you must pay the deductible in full before the policy begins to pay benefits.

Plan F covers all the following expenses:

  • Part A coinsurance and hospital costs for an additional 365 days after you use up your Medicare benefits
  • Part A deductible
  • Copayment or coinsurance for Part A hospice care
  • Coinsurance for skilled nursing care
  • Part B coinsurance or copayments
  • First three pints of blood

These plans also cover 80% of medical bills for emergency care outside the country up to plan limits. They also include the Part B deductible and the Part B excess charge.

Medicare Supplement insurance plan F 2020

Beginning January 1, 2020, Medigap plans will no longer cover the Part B deductible. Once this rule goes into effect, new Medicare beneficiaries will not be able to enroll in a Plan C or a Plan F. If you are a Medicare beneficiary who already has one of these plans, you will be able to keep your current policy. If you are eligible for Medicare before January 1, 2020, but haven’t enrolled yet, you may also be able to purchase a Plan F.

People with a high-deductible Plan F will also be able to keep their policy if they purchased it before 2020. In 2020, the deductible amount will be $2,340.

Options for New Medicare Beneficiaries

If you are a new beneficiary enrolling in Medicare for the first time, you will not be able to purchase a Medigap policy that includes coverage for your Part B deductible. The Part B deductible is the amount you must pay out-of-pocket before your Part B coverage begins. In 2020, the Part B deductible is $198.

Once you have paid your deductible in full, you will pay 20% for most of your medical services and equipment for the rest of the year. That percentage is known as your coinsurance. Your Medicare Supplement insurance plan may cover that coinsurance amount.

Which Medicare Supplement insurance plan is Right for You?

Although Medicare Supplement insurance Plan F will no longer be an option for new beneficiaries in 2020, there are other Medicare Supplement insurance plans to choose from. To get started, simply click the Get Quotes button to schedule a phone call or to request a personalized email.