Do you want to know the latest news and more about the goings-on with Medicare Plan F? Are you concerned that you won’t get any of the benefits of Medicare Plan F anymore? Before you start looking for a new health insurance plan, let’s talk about some Medicare facts.
We’ll talk in-depth about Medicare Plan F and what’s happening to it. We’ll also discuss which alternative health care plans you can take if you can’t get Plan F anymore. Continue reading to learn more about Medicare Plan F and why it’s going away.
Medicare Facts: What Is Medicare Plan F?
Let’s begin this list with a Medicare fact every reader needs to know about first. The plan is the most popular type of plan, often because it’s the most comprehensive one.
The plan covers inpatient hospital costs and coinsurance for a year after your coverage runs out. You also get coinsurance for nursing facilities, Part A, and Part B deductibles.
If you are overseas, the plan can also cover emergency care overseas. It also covers hospice care as well as excess charges. Finally, the plan may cover three pints of blood that you’ll need for any medical situation.
As you can tell, the plan is the type of insurance plan that covers a lot of things. This extensive coverage is what makes it such a big hit with those who want to buy health insurance. Since it’s so popular, you can find many private companies that also offer the plan to their customers.
Who Uses Medicare Plan F?
Did you know that there will the median age in the US grew to 38 years in 2018 from 37 years in 2010? In that same year, 16% of the population in the US also reached 65 years and older.
Your open enrolment period for Medicare Plan F starts on the month when you turn 65. It also starts after you enrolled in Medicare Plan B insurance. This means that the people who can only have Plan F health insurance are senior citizens.
Thus, the people who will most get affected when the plan gets discontinued are senior citizens. Given that everyone will reach that age at some point, it will affect everyone at some point. Now, it affects people who are turning 65 and 65-year-olds and older who have yet to get their Medicare.
Is Medicare Plan F Getting Discontinued?
For this Medicare facts section, the short answer is yes. Many people won’t have any more access to Medicare Support Plan F soon. This is part of the Medicare Access and Chip Reauthorization Act of 2015 (MACRA).
Some people will still have some access to it. However, the government will stop operations that entertain new enrollees soon. This also applies to Medicare Supplement Plan C.
When Is It Going Away and Who Can Still Use It?
You now know for sure that Medicare Plan F is getting discontinued. The next questions you likely have are questions of when and who. We’ll also answer the “why” question later in another section below, so keep reading.
Today, you can’t buy Medicare Plan F or C anymore if you qualified for Medicare on January 1, 2020, or later. If you were eligible for Medicare before that date, you may buy any of the two plans. This suits those who delayed getting Medicare for work and having employer insurance.
As long as you were eligible for Medicare before 2020, you still have the right to enroll for Plans C and F of Medigap. If you were already on the plan before 2020, you keep the plan. You can even buy Plan F policies from other carriers after 2020.
Did you know that 27.5 million Americans did not have any health insurance in 2018? While this change closes the doors to new Medicare buyers, it changes nothing for old eligible members.
This change prohibits the buying of Plans F and C to only new and eligible members. Even if you are a beneficiary of Medigap Plan G, you can switch your options to the plan without issue. These are the simple Medicare plan facts for Medigap Plan F.
Medicare for All Facts: Why Is Medicare Plan F Going Away?
Like other plans, the idea behind Medicare Plan F is to cover your out-of-pocket spending. However, the problem with this is that people took too much advantage of it. They ran to the doctor over common colds and minor health issues.
Imagine what happens to its fundings if everyone that Plan F covers uses their plan each time. Also, let’s say that everyone saw the doctor every time they had small coughs, sneezes, and sniffles. As you can guess, the Medicare (and the federal government’s) budget gets used up fast and soon.
Another problem with this is that Medicare isn’t paying doctors more, but rather less. Congress passed legislation that ensures doctors who provide Medicare services get paid better. However, there are also laws that contradict this and will even decrease doctors’ wages.
These pay cuts discourage doctors to stay in the Medicare program. Even as Congress tries to stall the cuts to doctors’ wages, they can’t keep doing it for long. There’s a big hole in the budget of the doctors, and Medigap won’t be helping anybody if it stays open to everyone.
Alternative Medigap Plans
If you wanted to get Medicare Plan F or C and can’t anymore, here are some alternatives.
Medicare Plan G is the next most comprehensive health insurance plan. The only difference is it doesn’t cover the Part B deductible. However, most of the other cost-sharing will get covered.
Find the Right Medicare Plan for You
Even if Plans F and C aren’t accessible to you anymore, there are always other ways to get good Medicare.
We hope you enjoyed reading our Medicare facts. If you want to learn more about other Medicare facts 2021 has to offer, check out our other guides now.