Legislators and non-profits in Colorado passed legislation that allowed people with Medicare Supplement Plans F, C, and High Deductible F to move to Plans G, D, and High Deductible G without answering any health questions. The opportunity to change took place in the first half of 2021. It was not well-explained nor promoted by any of the health plans, of course. Sadly, only about 20% of Coloradans with supplements took advantage of it. Those who did saw significant premium decreases as well as lower rate increases in 2022, in most cases.
What if you lived in a different state that didn't offer this no-underwriting opportunity? What if you missed the chance to save $1000 per year in premiums because you didn't know about it? Sounds suspicious - how does this savings work anyway?
As of January 2020, Medicare no longer allowed people who were new to Medicare to join Plan F, Plan C, or High Deductible Plan F. The reason behind the change is that they wanted people to experience first-dollar responsibility when they went to the doctor. New enrollees have the option of Plan G, Plan D, or High Deductible Plan G. The only difference between the former and the latter is the Part B Deductible.
In 2022, the Part B Deductible is $233. Basically, this means that you would have to pay the 20% that Medicare doesn't pay for doctors, ER, Ambulance, outpatient surgery, MRI, etc. - up to $233. Only once during the calendar year. Why bother when you have a plan that already covers the Part B deductible? It all comes down to dollars and sense.
Above are examples of four clients who I personally assisted with these changes. Check out the first-year savings! Many of the Plan F's saw hefty rate increases year after year after year. A plan that was affordable at age 65 became prohibitively expensive. Believe it or not, though, that is not the number one reason to change.
Since Plans F, C, and HD-F no longer allow the new 65-year-olds to join, there are no younger people that can offset the higher claims experience of an aging group of people. The result is that rates will increase more rapidly on the old plans.
In most cases, changing now will mean answering health questions. It is still worth investigating whether you qualify. There are exceptions to this in different states and with among health insurance companies, which is why you should always speak with an independent insurance broker who is contracted with many plans.
Integrity Insurance LLC is a team of tenured agents who are Friendly, Ethical, Reliable, Informed, and Strategic. To learn more about Medicare options, visit insure-integrity.com/medicare or call us at (720) 990-1680.
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