AARP/UHC Medigap Plans F/G

[MBSC]

As you may know, one of the best features for those enrolled in an AARP/UHC Medigap plan (except 'J') is the ability to switch between their plans with a simple phone call to customer service.

With AARP/UHC rolling out their Plan G in 33 states on July 1, those currently enrolled in Plan F may want to look into switching since the annual premium savings is usually greater than the $183 annual Part B deductible. Change requests become effective the first day of the following month.

A question that comes up often is, "If I have already met the Part B deductible, will I have to meet it again by switching to G mid-year?" The answer is no. Traditional Medicare, not the supplement, decides when you have met the deductible so if traditional Medicare shows the deductible as being met you will not have to meet it again for the same calendar year.

 

[FIRE'd@51]

Are you saying that you can switch plans without underwriting even if you have been on Plan F for more than 2 years?

 

[MichaelB]

Interesting, and good to know. Also helpful for us. I just looked at MediGap plans for my brother, using the Illinois Medicare webpage, which has a easy to use summary of all the plans and pricing. It didn't show that option, I think the "G" is the best option for my brother, and was set to recommend the BCBS. This UHC policy is $15 per month less expensive.

 

[Ian S]

When I was looking last year, I really wanted a G type plan but AARP/UAC didn't offer it and so for other reasons (including the Silver Sneakers benefit), I opted to still go with AARP/UAC's F plan. I will have to look into the new G plan if it's offered here in AZ. Thanks for the info.

 

[Ian S]

OK, here in AZ, the G plan is $21/mo cheaper than the G plan. Not too shabby. Will certainly look into it!

 

[MBSC]

Are you saying that you can switch plans without underwriting even if you have been on Plan F for more than 2 years?

As long as you do not have ESRD or closed Plan 'J', there is no underwriting within AARP. The underwriting occurs when you try to move to AARP from another insurer and do not qualify for a "guaranteed issue" provision.

 

[NoMoreJob]

I recently signed up for Medicare (in AZ) and chose plan G over F. It seemed to me that with F closing in a couple of years the insured pool is certain to begin ageing (no new younger sign-ups) which is likely to mean faster rate increases for F compared to G which will be getting the new sign-ons. I think may who have F will just opt to stay with it because that's what they know.

Also, with Congress working to hold Medicare spending down, I think it's likely that reimbursement rates to doctors will continue to be a focus which may lead to more doctors not accepting assignment. Plan G (and F) will pay 'excess charges' to those doctors accepting Medicare but not accepting assignment.

As some mentioned, the plan G premium savings were well in excess of the $183 deductible that plan G requires I pay so that seemed like a no-brainer.

FYI, I started with plan F from one carrier in June and then changed to UHC in July when they made G available. I got the deductible covered under plan F so will not be subject to it in 2017 (but will in future years).

 

[MBSC]

Update: UHC/AARP is revising their internal policy of allowing existing members to downgrade from Medigap plan F to G without underwriting. It looks like courtesy downgrades to Plan N will still be allowed.

Starting October 1, 2018, members currently enrolled in an AARP® Medicare Supplement Insurance Plan, including Medicare Select Plans, insured by UnitedHealthcare® Insurance Company, residing in all states and territories EXCEPT CA, CT, FL, GU, MA, ME, MN, MP, NY, OR, VI, VT, WA, and WI who wish to change to Plan G will now need to complete a new application and answer all medical underwriting questions to determine a premium rate. This new underwriting policy is in response to UnitedHealthcare’s efforts to maintain stable Plan G premium rates and product competiveness.

Reference: Alert: New Underwriting Policy for AARP Medicare Supplement Insurance Plan G

 

[MichaelB]

Update: UHC/AARP is revising their internal policy of allowing existing members to downgrade from Medigap plan F to G without underwriting. It looks like courtesy downgrades to Plan N will still be allowed.

Thanks for the update. Do you know the reason for the exceptions?

EXCEPT CA, CT, FL, GU, MA, ME, MN, MP, NY, OR, VI, VT, WA, and WI

Will downgrading still be allowed in any of these states?

 

[NoMoreJob]

Federal Law is overarching but states are allowed to make their own exceptions. Here's an excerpt from a KFF report that discusses the differences.....

Some states provide additional guaranteed issue rights for current Medigap policyholders. Two states (CA and OR) allow beneficiaries to switch each year to a different Medigap plan with equal or lesser benefits within 30 days of their birthday, and another state (MO) allows policyholders to switch to an equivalent plan within 30 days before or after the annual anniversary date of their policy. Medigap policyholders in Maine can switch to a policy with equal or less generous benefits at any time during the year (not only during the annual open enrollment period) if there is less than a 90 day gap in coverage. Some Medigap insurers may also provide guaranteed issue rights to their policies that go beyond the state requirements. In Illinois, Blue Cross Blue Shield of Illinois and Health Alliance provide ongoing guaranteed issue rights for all beneficiaries ages 65 or older.

Full report here.....
https://www.kff.org/medicare/issue-...-and-consumer-protections-vary-across-states/

This is one more reason that discussions here can be inadvertently confusing or misleading. A 'right' answer for one state may not be for another even though Medicare is a Federal Government program.

 

[kaneohe]

Update: UHC/AARP is revising their internal policy of allowing existing members to downgrade from Medigap plan F to G without underwriting. It looks like courtesy downgrades to Plan N will still be allowed.

Yes, thanks for this update. When I called UHC/AARP this AM, the rep swore no knowledge of the change but I'm believing you and the link over her. Even
if she is right, no harm done since I'll save $27+/mo. for the 4 mos. left in yr
and (12x27- 183)/yr =141/yr in the future........if I do it this month. Thought I would mull it over overnite but might not be able to resist doing it sooner.

 

[kaneohe]

Update: UHC/AARP is revising their internal policy of allowing existing members to downgrade from Medigap plan F to G without underwriting. It looks like courtesy downgrades to Plan N will still be allowed.

curious why the guy who wrote that piece knows this but the reps at UHC/AARP don't......................and is it real?

 

[NoMoreJob]

curious why the guy who wrote that piece knows this but the reps at UHC/AARP don't......................and is it real?

I don't think we can know for certain. My agent learned of a pending rate change when I was first signing up for Medicare. Neither he nor I could get multiple phone reps to confirm the change but it did happen a month or two later. So either the reps are poorly informed or told not to pass along certain information.

 

[Richard4444]

I'm still confused
I have plan F, and plan G is the same coverage but I would have to pay the deductible. Logically, so long as you use it, they should pretty much equal out at the end of the year but for some reason that I am missing .. they seem a bit too much off in price.

What am I missing ?

Thanks,

Rich

 

[NoMoreJob]

I'm still confused
I have plan F, and plan G is the same coverage but I would have to pay the deductible. Logically, so long as you use it, they should pretty much equal out at the end of the year but for some reason that I am missing .. they seem a bit too much off in price.

What am I missing ?

Thanks,

Rich

They often don't even out because with Plan G you save more on a year of premiums than the annual deductible. So for instance, the 2018 deductible is $183 which is $15.25/month (183/12=15.25). As long as Plan G is more than $15.25/month less than Plan F you come out ahead for the year. You pay the $183 deductible (assuming you use the plan to that degree) and save a greater amount in premiums. Often that difference can be substantial.

Now why they are (often) priced that way is another question and I have no idea.

 

[Richard4444]

Now why they are (often) priced that way is another question and I have no idea.

And that's what I'm missing ... and I wonder if either F or G is inherently more stable price wise for the future as plan F is being removed for new applicants.

What I am trying to figure out, being on plan F, is it wiser to switch to G which is less costly now (or if some magical formula says no), because I wouldn't be able to return to F in the future ?

Rich

 

[NoMoreJob]

And that's what I'm missing ... and I wonder if either F or G is inherently more stable price wise for the future as plan F is being removed for new applicants.

What I am trying to figure out, being on plan F, is it wiser to switch to G which is less costly now (or if some magical formula says no), because I wouldn't be able to return to F in the future ?

Rich

I have never seen an authoritative answer to that question and it's been being asked ever since we've known about G and the impending demise of F. As far as I'm concerned it's your best guess. I doubt that it's going to make a huge difference one way or the other but I also think that no one really knows.

 

[REWahoo]

I have never seen an authoritative answer to that question and it's been being asked ever since we've known about G and the impending demise of F. As far as I'm concerned it's your best guess. I doubt that it's going to make a huge difference one way or the other but I also think that no one really knows.

I agree the "what will happen to F premiums" question is unknown. A lot of speculation but only time will tell.

I was concerned enough to make the switch from F-HD to N and to another carrier after learning my insurer was already charging 50% higher premiums than many others in my area.

 

[ncbill]

When I helped an older relative sign up for Part B, Medigap, and drug plan early this year in our market Plan F premiums were so high that only Plan G made sense.

 

[MBSC]

curious why the guy who wrote that piece knows this but the reps at UHC/AARP don't.....and is it real?

The website simply posted the content of an email UHC sent to agents and brokers giving them a heads-up on the change. When agents call, they speak to a different set of UHC CSRs than members because agent questions are usually more technical. According to another message board, the agent CSRs are aware. I assume the member CSRs will get the memo in a few weeks since it does not impact them until October 1.

It looks like you can use the following website to find a local UHC agent and ask if they got the email. http://www.myuhcagent.com/

I have plan F, and plan G is the same coverage but I would have to pay the deductible. Logically, so long as you use it, they should pretty much equal out at the end of the year but for some reason that I am missing .. they seem a bit too much off in price.
What am I missing ?

Plan F members are sicker than Plan G members so the higher premium for F reflects both the Part B deductible and higher utilization.

 

[Richard4444]

Plan F members are sicker than Plan G members so the higher premium for F reflects both the Part B deductible and higher utilization.

I didn't know that, but now it certainly makes sense.
Thanks !

Rich

 

[haha]

Thanks for the update. Do you know the reason for the exceptions? Will downgrading still be allowed in any of these states?

In Washington one can always move laterally or down. Otherwise, it is very easy to get trapped. Washington has a standup insurance commissioner named Mike Kreidler.

I think California has a similar law. Not sure about any of the other states mentioned.

Ha

 

[kaneohe]

The website simply posted the content of an email UHC sent to agents and brokers giving them a heads-up on the change. When agents call, they speak to a different set of UHC CSRs than members because agent questions are usually more technical. According to another message board, the agent CSRs are aware. I assume the member CSRs will get the memo in a few weeks since it does not impact them until October 1.

It looks like you can use the following website to find a local UHC agent and ask if they got the email. http://www.myuhcagent.com/
Plan F members are sicker than Plan G members so the higher premium for F reflects both the Part B deductible and higher utilization.

Thanks for that link..............sure are a lot of them agents locally. Might have picked the wrong time to call........called 6 and only got 1 to answer and she sounded no different than the member CSRs. She knew about the CA birthday rule where you can switch w/o underwriting in the 30days +/- your birthday but
thought you couldn't otherwise while the memo seems to imply that you could at any time for UHC/AARP............so I don't know whether there will be an
actual change for CA or not.

Wonder what would happen if I call that Precision Sr. Marketing that wrote the memo.

 

[NoMoreJob]

For whatever it's worth here's another data point on the future of rates for plan F vs. plan G. I just received an email from my agent which included this....

Great News ! I just got an email from AARP / UHC with new rates starting April 1, 2019 in [my state name].

Your Plan G rates will stay flat at a 0% increase. (You will still incur 3% per year age increase on your birthday)

(By the way, Plan F is going up 8%.)