Medigap F High Deductible

[HadEnuff]

I didn't want to hijack an existing thread, so I am starting yet another Medigap thread.

I'll be 65 in September of this year.
Someone mentioned in another thread that the F-High Deductible option is to phased out in 2020.

It is the plan that makes the most sense to me, for me, so that is how I was planning on going.

If you have and maintain Medigap coverage, can you switch types without underwriting at certain times of the year (the way you can with Part D plans)?

If not, any insights as to how pricing might be affected when they stop letting the new players in?

 

[REWahoo]

HadEnuff, check out this recent thread for info on your questions: http://www.early-retirement.org/for...just-how-does-that-deductible-work-91566.html

 

[MichaelB]

I think you’re safe, it’s the traditional F (no deductible) being phased out, and replaced with F Hi - Ded.

Your second question about switching, no, you only have guaranteed issue with no underwriting when you first became eligible. After that, ability to change plans without underwriting requires some very specific circumstances, such as your current plan being withdrawn.

 

[REWahoo]

I think you’re safe, it’s the traditional F (no deductible) being phased out, and replaced with F Hi - Ded.

Actually, both Plan F and Plan F-HD will no longer be available to new Medicare beneficiaries beginning in 2020. A Plan G-HD will be introduced in 2020 with similar benefits to the current Plan F-HD.

http://www.naic.org/documents/commi..._exposure_medigap_plans_sold_after_200101.pdf

 

[Dtail]

Actually, both Plan F and Plan F-HD will no longer be available to new Medicare beneficiaries beginning in 2020. A Plan G-HD will be introduced in 2020 with similar benefits to the current Plan F-HD.

http://www.naic.org/documents/commi..._exposure_medigap_plans_sold_after_200101.pdf

Good chart.
So no Medigap plan starting in 2020 will cover the Medicare Part B deductible?

 

[REWahoo]

So no Medigap plan starting in 2020 will cover the Medicare Part B deductible?

Correct.

 

[TrvlBug]

I... ...

Your second question about switching, no, you only have guaranteed issue with no underwriting when you first became eligible. After that, ability to change plans without underwriting requires some very specific circumstances, such as your current plan being withdrawn.

There are some state exceptions. California allows switching during one's birthday month for any reason. DH switched recently.

 

[REWahoo]

There are some state exceptions. California allows switching during one's birthday month for any reason. DH switched recently.

Note that the California law allows only a switch to a plan with equal or lesser benefits.

How does California’s Medigap Birthday Rule work?

 

[TrvlBug]

Note that the California law allows only a switch to a plan with equal or lesser benefits.

How does California’s Medigap Birthday Rule work?

Yes, you're correct. DH has Plan F so it wasn't an issue. He switched because premiums increased 9% from prior year and that was too high for us. New company also offers add'l bens such as 'silver sneakers' which we'll check out when I am Medicare eligible. It should save us well of $1K/yr in gym membership costs.

 

[REWahoo]

New company also offers add'l bens such as 'silver sneakers' which we'll check out when I am Medicare eligible. It should save us well of $1K/yr in gym membership costs.

Sounds like he switched to a Medicare Advantage plan?

 

[TrvlBug]

Sounds like he switched to a Medicare Advantage plan?

No way, no Advantage plan for us. He switched to AARP's United Healthcare Plan F. Once they close Plan F in 2020 we'll see where the premiums go and/or they drop Plan F and will then switch to a Plan G.

 

[TrvlBug]

... ...

If not, any insights as to how pricing might be affected when they stop letting the new players in?

I specifically asked that question when DH switched companies but decided to stay with Plan F. The Medicare insurance broker we used (she only deals in Medigap/Advantage insurance and represents all the major players in our area).

She had no idea but guessed they would drop F if premiums skyrocketed. If that happens anyone can change companies/plans. This is one of the few exceptions where you can switch at any time and we felt comfortable staying with F.

 

[MichaelB]

Actually, both Plan F and Plan F-HD will no longer be available to new Medicare beneficiaries beginning in 2020. A Plan G-HD will be introduced in 2020 with similar benefits to the current Plan F-HD.

http://www.naic.org/documents/commi..._exposure_medigap_plans_sold_after_200101.pdf

I’ve learned something new today, as I was sure the F-HD was designed to ensure continuity. Reading the Medicare explanation, it’s pretty clear that HD will also be closed.

Well, something else to think about as I look for my own plan this year.

 

[MichaelB]

I’ve learned something new today, as I was sure the F-HD was designed to ensure continuity. Reading the Medicare explanation, it’s pretty clear that HD will also be closed.

Well, something else to think about as I look for my own plan this year.

Looking back at a half-dozen MediGap threads from the past 2-3 it seems general consensus has been that the "first dollar" aspect of the F-HD plan satisfied the requirement that plans not cover the Medicare B deductible. This is really the first discussion I can recall where the conclusion is F-HD will close to new enrollees.

The reason for the change, as described in the link REWahoo provided, is that while the F-HD policyholder pays first dollar with a high deductible, the plan itself still pays the Medicare B deductible, which is contrary to the letter of the mandate. It's really a but silly, but it makes sense to plan for this to happen as described here.

 

[ncbill]

Why the obsession with covering the Part B deductible?

When pricing F vs. G for an older relative recently the premium difference was more than the deductible, at least for the plans available in our market.

 

[TrvlBug]

Why the obsession with covering the Part B deductible?

When pricing F vs. G for an older relative recently the premium difference was more than the deductible, at least for the plans available in our market.

In our case, there isn't any. The company we first went with didn't offer G; very few in our market did. In the case of UHC, there was no difference in premium between F and G. Bottom line cost to us was the same so we opted to go with the less paperwork route until we're forced to change to G.