Is Plan F Going Away?

As of January 1, 2020, Supplement Plan F will no longer be offered for sale in the United States. What does this mean for you and is it time to start thinking about alternatives for your existing supplemental coverage? Plan F is indeed popular, and many seniors rely on having deductibles and coinsurance paid in full. Unfortunately, come 2020, supplement plans will no longer be allowed to offer coverage for the Part B deductible ($183 in 2017). As a result, Plan F, Plan C and high deductible Plan F are being phased out. Here’s what you need to know. 

Plan F will no longer be offered to new enrollees after 2020!  Current Medicare policyholders will not be forced to give up their Plan F coverage. Existing policyholders and those who buy before 2020 will be eligible for deductible coverage. In other words, if you have Plan F now, you can keep it. However, for new recipients, Plan F may not be an attractive option as premiums are likely to become more expensive. Why?  Well, it has-to do with the costs of claims processed. After 2020, when Plan F is no longer taking new applicants, claims will increase due to an aging membership pool, which will increase premiums. It is possible that another version of high deductible Plan F will be offered, but that remains to be seen.

Plan G is a great alternative to Plan F-Currently, Plan C and F are the only two supplement plans available that offer coverage of the Medicare Part B deductible. As they are pushed out, Plan G may be a smart alternative as it provides the exact same coverage without the Part B deductible.  If you are currently enrolled in Plan F, you will not lose your coverage in 2020. However, as has been the case with other plans that have been eliminated, premiums for Plan F are expected to rise and it may be a good strategy to switch from Plan F to Plan G now, securing the same benefits – of course, without coverage for the Part B deductible.