Medigap Plan F Is Officially Phasing Out: What to Do Now

Medigap Plan F has started its phase-out process as of January 1, 2020. It is now only available to those who became newly eligible for Medicare before 2020. Anyone who became newly eligible for Medicare on or after January 1, 2020 cannot purchase a Medigap Plan F.

We wrote a comprehensive article about why Plan F is going away, what to do if you currently have Plan F, what will replace Plan F, and more, but now that 2020 is here, our clients have more questions than ever!

Here’s what to do now as Plan F has officially started to phase out of the Medicare Supplement market.

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Keep Your Plan F – Or Not!

If you already have a Plan F, you can keep it if you like it! However, if the company you’re with starts to experience rate increases, you might consider switching to a different company.

There are some excellent buys right now on new companies who are coming out with Plan Fs, so if your health qualifies you, reach out to us! We can almost certainly save you money on your Plan F monthly premium.

Alternatively, you may choose to switch plan types altogether. Plan G and Plan N are the new go-to Medigap options, so it may be worth comparing your current premium to what’s available on the market.

Each individual’s situation is unique, so please reach out to us and let us know what company you have and what you’re paying in premium. We can quickly let you know if you’re doing just fine or should consider making a change.

Rely On Your Medigap Agent

If all of this sounds foreign to you and you can hardly spell Medigap, rely on your agent! If you do business with us here at Medicare Allies, your agent will be monitoring your rates throughout the year. If they get too high or you experience any rate increases, you’ll be hearing from us.

We are always proactive and will make sure you’re not overpaying for your Plan F. Beyond monitoring your rates throughout the year, we also do an annual review with you. Rest assured that we are on your side and are ensuring you’re well taken care of, regardless of the changes happening to Medicare plans.

Further Reading: 6 Reasons to Work With a Medicare Allies Insurance Agent Instead of Buying Direct from the Carrier

Consider Medicare Advantage as an Alternative

If you already have a Medicare Supplement, you may first consider switching to a different company or plan type. However, if you want to branch out and consider alternative Medicare plans, you might look into Medicare Advantage (MA) or Medicare Advantage plans that come with drug coverage (MAPD).

Big cities often have dozens of excellent MA and MAPD options, often for $0 premium and low copays. MA and MAPD plans also often come with extra benefits like dental, vision, and hearing coverage as well as access to free gym memberships through programs like SilverSneakers.

Medicare Advantage is more of a “pay as you go” plan, where it costs little to carry the plan, but you will have out-of-pocket expenses when you use it.

Individuals who are not good candidates are often those in rural areas. Small cities and rural areas have access to fewer plan options, and we often find that the options aren’t competitive enough to be worthwhile.

Additionally, those who travel often or who migrate south for the winter are not good candidates for a traditional Medicare Advantage PPO or HMO plan. The restrictive networks don’t travel with you.

For the right person, a Medicare Advantage plan can be a great alternative to a Medicare Supplement.

Check it out: Available Medicare Advantage Plans This Year

Consider a Medicare Medical Savings Account (MSA)

Another alternative option to those looking to move beyond a Medicare Supplement is the Medicare MSA. An MSA is a $0 premium health plan combined with high-deductible health coverage and a special medical savings account.

Money is deposited into your account, and you decide what healthcare services to spend it on. There are no provider networks, and once you reach your plan deductible, 100% of your Medicare-covered expenses are paid for.

Read More: How Do Medicare MSA Plans Work, and Do I Need One?

With an MSA, you don’t have to worry about small provider networks or high monthly premiums. See your favorite doctors and even use your special deposit on qualified medical expenses that Medicare won’t cover, like eyeglasses and dental work.

For 2020, the largest MSA provider, Lasso Healthcare, is offering a $3,240 annual deposit. The Lasso Healthcare deductibles range from $7,400-$9,400 depending on which county you’re in. Ultimately, the deposit that comes with an MSA plan is yours to spend, move to your own bank, and/or invest.

If you have a Plan F that is starting to experience some rate increases, you may be able to save a lot of money by switching to the Lasso Healthcare MSA.

We were recently discussing the MSA with a couple living in a small town. Their total combined premium for their Plan Fs was $8,000 per year – they’re in their early 80s. Between them both, they’d start out with over $6,400 in their medical savings accounts. PLUS they avoid paying $8,000 per year in premiums. That is an immediate difference of over $14,000!

It’s a pretty great feeling to help a couple in their 80s experience a $14,000 difference in their budget.

Call Us For Extra Help

As Plan F starts its long phase-out process, we encourage you to call us with any questions you might have.You shouldn’t notice any immediate changes, but if you do get some rate increases, lean on us for guidance!

We love educating our clients, and nothing brings us more joy than helping our clients save money on their Medicare premiums.

Call us at 833-801-7999 for assistance, or feel free to use our Contact form! We look forward to helping you.