Q. What is happening to Medicare Supplement Plan F on 1/1/2020?
A. Medicare Supplement Plan F will no longer be sold to new enrollees. What we know at this time if the client has turned 65 before 1/1/2020 then he or she will be able to purchase or switch their Plan F to another company. Individuals turning 65 after 1/1/2020 will have the choice to enroll in one of the other Medicare Supplement Plans available (A, B, D, G, K, L, M, or N.) The Plan F premiums will be increasing at a higher rate than other Plans that are not impacted by this change. Each plan is individually rated based on the costs (e.g., claims) for that specific plan type. In 2020, when Plan F is no longer accepting new enrollees, the pool of Plan F members will begin to age more so than other plans, which will drive higher claim costs and drive up the premiums.
Now may be a good time to check with your clients and review their situations. Those who are healthy may consider acting now and changing into another Medicare Supplement Plan. For more information on how to guide your agents through this process, or how to explain the Plan F situation, please feel free to contact your Regional Sales Director at Agent Pipeline.