Medicare F, F-HD or Plan G?

[CRLLS]

DW has signed up for Medicare starting in February. We are looking at supplement plans. We are considering Plan F-HD, but are worried about what happens after 2020. Plan F-HD will be closed to new applicants. The plans will be continuing but I expect the rates to increase greatly. Plan G is very similar to F(non -HD) right now but is not a guaranteed issue Plan. From my research in 2020 Plan G will be a guaranteed issue and they will offer a Plan G-HD. So here is my question.

Our health is such that, in the long run, an HD policy is our best plan. Even if it should go south, I don't see the two of us using the $2200 (2017) deductible in the same year. If one of us hits that, then we are OK based on current Plan costs. Truth be told, we can handle both of us using the deductible for many, many years.

Should we sign up for F-HD now and try to change to G-HD in 2020 (of after), or sign up for G now and then downgrade to G-HD later on.

Too many unknowns and it seems that changing plans later on is iffy, at best. As they said in Indiana Jones and the Last Crusade movie, "Choose wisely".....for you may be locked into that plan for 30+ years. but we do need to decide soon.

 

[REWahoo]

We are considering Plan F-HD, but are worried about what happens after 2020. Plan F-HD will be closed to new applicants. .

Perhaps something has been announced recently that I missed, but it is my understanding there has been no decision on whether or not the 2020 rules closing Plan F to new applicants will also apply to Plan F-HD. I've not heard about the possibility of a new Plan G-HD either. Do you have a link?

The rules changes were designed to stop the sale of new Medigap policies that pay the Medicare deductible, thus keeping "skin in the game" for all Medigap policy owners. Since this is not the case for the HD version of Plan F, I don't see any reason they would not continue making it available to new applicants. But since it is the govt, ya never know.

 

[MichaelB]

I agree with REWahoo. The reason F will be closed is because it pays everything, and policyholders have no incentive to not use it. With F-HD the policyholder has a very high deductible. F-HD is a much less expensive option compared with G unless you have significant regular / ongoing expenses.

 

[MBSC]

The HD-F "deductible" is expected to insulate it from the rate increases anticipated for "regular F". I would sign up for HD-F when you are eligible.

With HD-F, Medicare still pays first. You pay the remaining Medicare cost share until you hit the $2200 limit, then HD-F takes over.

Perhaps something has been announced recently that I missed, but it is my understanding there has been no decision on whether or not the 2020 rules closing Plan F to new applicants will also apply to Plan F-HD. I've not heard about the possibility of a new Plan G-HD either. Do you have a link?

The rules changes were designed to stop the sale of new Medigap policies that pay the Medicare deductible, thus keeping "skin in the game" for all Medigap policy owners. Since this is not the case for the HD version of Plan F, I don't see any reason they would not continue making it available to new applicants. But since it is the govt, ya never know.

The 2015 MACRA did not address HD-F. CMS delegated the decision on how to handle HD-F to the state insurance commissioners and private industry.

The NAIC decided it would be confusing for new enrollees in 2020+ to be able to choose this F but not that F. Their recommendation to CMS was to close HD-F to new enrollees and create an identical HD-G. (You can choose this G or that G.) CMS recently adopted the recommendation and is in the process of drafting a proposed rule to appear in the Federal Register with the usual 60 day public comment period.

2020 benefit chart as adopted: http://www.naic.org/documents/commi..._exposure_medigap_plans_sold_after_200101.pdf

 

[REWahoo]

2020 benefit chart as adopted: http://www.naic.org/documents/commi..._exposure_medigap_plans_sold_after_200101.pdf

Thanks.

 

[CRLLS]

Everything I read said that F-HD was a subset of F. Without F, there would be no F-HD. It makes sense to me, otherwise it would have been called Plan Q, Plan S or even T. I agree with the comment about F-HD not being first dollar coverage.

I think Plan F-HD is probably what I would get. However I would like to get AARP Plan, as it has the only non-age based Plans in my state (Illinois). They offer an F Plan but not an F-HD plan. I can only assume that they will replace the F with a Plan G by 2020. But I think that since they do not offer F-HD, chances are they won't offer a G-HD later on.

I understand the intricacies and possible needing to meet underwriting when changing plans later on down the road. Has anyone got any family experience in changing their Medicare? How difficult was it really? What problems did you face?

Oh, and thanks MBSC for the link confirming my research.

 

[meierlde]

More important is to look at how the premiums for Medigap increase with age some companies go far higher than others. Combine this with the fact that not all companies offer both plan f and g (depending on your area).

 

[MBSC]

I think Plan F-HD is probably what I would get. However I would like to get AARP Plan, as it has the only non-age based Plans in my state (Illinois). They offer an F Plan but not an F-HD plan. I can only assume that they will replace the F with a Plan G by 2020. But I think that since they do not offer F-HD, chances are they won't offer a G-HD later on.

I understand the intricacies and possible needing to meet underwriting when changing plans later on down the road. Has anyone got any family experience in changing their Medicare? How difficult was it really? What problems did you face?

UHC/AARP will begin rolling out their "regular G" in mid-2017. As a data point, in NC their G will be about $32/month less than F. I agree they will probably not offer HD-G.

Changing Medigap plans after open enrollment depends on state regulations and the insurer's rules. Several states allow a lateral move or downgrade without underwriting once a year. UHC/AARP is the most lenient. Typically, the questions center around having surgery in the past couple of years, being told you need surgery, and medications. One insurer will allow a certain Rx while another rejects those applicants. A local independent agent will give you the most accurate information for your area.