Medicare Supplement Plan Options are Changing

     If you are turning 65 before the end of this year and considering your Medicare Supplement options you need to know that Plan F, which has been the most popular plan, will not be offered after January 1, 2020. Plan F is popular because it covers all your out of pocket expenses including the $185 Part B deductible. 

    Even if you are able to enroll in Plan F, you may want to consider Plan G.  Although Plan G does not cover the Part B deductible, the difference between rates for Plan F and G can be more than the cost of the deductible. 

     The only reason to consider Plan F may be for the high deductible plans offered by some companies.  These plans require you to pay a deductible of $2,300 before services are covered.  Premiums for high deductible plans can be as little as one third of regular Plan F premiums.  If you have a Health Savings Account, you can pay premiums and deductible payments from your HSA.   And, although contributions to HSAs are not allowed after age 65, you can transfer assets from an IRA before turning 65 to fund the account and get the tax benefits an HSA offers. 

    Regardless of when you become eligible to enroll in a medigap plan, it’s worth your time to shop around.  Policy benefits in most states are uniform, but premiums from insurance company to insurance company can vary widely. 

     For instance, the highest and lowest rates for Plan G policies in Kansas range between $1,395 and $2,918 for a male, non-smoker, age 65. All of the rates can be found in the 2019 Kansas Insurance Department Medicare Supplement Insurance Shopper’s Guide.  Cost should not be the only factor when choosing a policy.  A company’s financial stability should always be considered.

      If you would like to know more about this, please give me a call.