Medicare Supplement 2018

With 2018 fast approaching we are ever closer to the 2020 MACRA changes to Medicare Supplement insurance. While the changes associated with MACRA don’t take effect until January 1st 2020, there are changes that aren’t part of the law, but are a by-product of the law that are beginning to show.

 

  • For a couple years now carriers have begun to roll out a Plan G Medigap that does not provide first dollar coverage, as restricted by MACRA beginning 2020. This will continue into 2018 as Plan G becomes the more preferred plan over Medigap Plan F. (This is not necessarily a good thing) We expect these plans to remain competitively priced through 2018 as carriers try to grow their respective risk pools heading into 2020.
  • For certain carriers Plan F premiums will be intentionally raised, as to make the Medigap Plan F less attractive compared to their Medigap Plan G. Don’t fall for a teaser rate, get our FREE REPORT 5 Key Benchmarks for Choosing a Medigap Policy.

 

For 2018 Medicare Supplement plans will remain in their current form. However, we are following closely the Medicare Part B Deductible for 2018 that will be released in November. It is almost a certainty that, for the viability of Medicare, the Part B Medical Insurance deductible of $186 for 2017 and the Part A Hospital Insurance deductible of $1,316 will be combined into one Medicare deductible. This absolutely puts a higher burden on Medicare recipients’ on out of pocket costs. When this happens the premiums for all Medigap policies can be expected to increase reflecting this added cost. How much will depend on the amount of a single deductible.

 

In Summary, we see 2018 as more of a positioning year for most carriers as they prepare for MACRA and other changes to Medicare on the horizon. This will most likely be beneficial for Medigap policyholders, but now through 2018 will be the ideal time to examine their current position. Using our free report will ensure an individual has a carrier and policy going forward that will keep them protected and offer stable rates. Reminder: Plan F isn’t going away, and do not allow anyone to talk you into switching until you’ve done your own due diligence.