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Medicare Plan F Going Away (and Plan C)

Kelsey Davis Medicare, Medicare Supplement, Medigap

When you enroll in Original Medicare (Part A and Part B), you have the option of increasing coverage by purchasing a Medicare Supplement plan (also called Medigap). These plans work alongside Original Medicare and add financial benefits (like help paying for your copayments, coinsurance, and yearly deductibles). Every state (except Massachusetts, Minnesota, and Wisconsin) has ten different types of plans. Each plan is represented by a different letter (A, B, C, D, F, G, K, L, M, and N). Plan F and Plan C are the most inclusive, and in turn, are the most popular. But did you know both plans are going away in 2020? 

Make sure you do not confuse Medigap Plan A with Medicare Part A – they are two very different things! 

Medicare Plan Finder

Medicare Plan F Benefits

Plan F has been a top-seller in many states for years and is the most comprehensive Medigap plan. Medicare Plan F covers: 

  • Blood work copays up to three pints (100%)
  • Foreign travel emergency (80%)
  • Hospice coinsurance and copayments (100%)
  • Part A coinsurance and hospital costs (100%)
  • Part A deductible (100%)
  • Part B coinsurance and copayments (100%)
  • Part B deductible (100%)
  • Part B excess charges (100%)
  • Skilled nursing facility coinsurance (100%)

Medicare Plan C Benefits

Medicare Plan C covers all of the gaps from Original Medicare except for Part B excess charges. More specifically, Plan C includes the following:

  • Blood work copays up to three pints (100%)
  • Foreign travel emergency (80%)
  • Hospice coinsurance and copayments (100%)
  • Part A coinsurance and hospital costs (100%)
  • Part A deductible (100%)
  • Part B coinsurance and copayments (100%)
  • Part B deductible (100%)
  • Skilled nursing facility coinsurance (100%)
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Plan F vs Plan C

Plan F is very similar to Plan C. The only difference is that Plan C does not cover Medicare excess charges. If a doctor does not accept Medicare assignment rates, you will be responsible for excess charges, but it can not exceed 15% of what Medicare pays. Some states do not allow doctors to issue excess charges. If this is the case, Plan C will operate identically to Plan F.

Why is Plan F Going Away?

Back in 2015, Congress passed the Medicare Access and CHIP Reauthorization Act. According to the act, starting on January 1, 2020, Medicare Supplement plans can no longer cover the Part B deductible, something that only Medigap Plans F and C currently cover. 

Congress supports this law because they worry that all-inclusive plans may encourage people to access medical attention more often, even when it’s not necessary. Congress hopes that requiring individuals to pay for their Part B deductible will stop people from taking advantage of their coverage.

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Can I Keep My Plan F After it’s Discontinued? 

If you currently have Medicare Supplement Plan F, don’t fret! This policy change only affects new beneficiaries. While your rates may increase (as they technically do every year), you will not lose your current coverage. However, if you leave your Medigap Plan F for whatever reason, you will not be able to go back to it after 2020. If you do not have Plan F, but you would like to, you can lock yourself in by enrolling NOW. You must enroll before January 1, 2020, to receive Plan F coverage. 

Due to this change, Plan F beneficiaries will be given a chance to compare rates and switch to a new policy. If you decide you may want to switch, you can start by using our Medicare Plan Finder tool to decide what plan option (other than F) is best for you. If you still need help, click here to request a call from a local and licensed agent!

What is a Good Alternative to Plan F?

Many seniors and Medicare eligibles who already have Plan F are deciding to drop Plan F altogether and switch to Plan G. Plan G covers everything that Plan F does minus the Part B deductible, and it typically has a lower monthly premium. Another popular plan is Plan N. The only benefit that is included in Plan G and not Plan N is the coverage for Part B excess charges. However, the thing to remember about excess charges is they are relatively rare. You will only be charged an excess charge if your provider does not accept Medicare.

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Medicare Plan F vs Plan G

Great news! Plan G is almost identical to Plan F! The only difference is that Plan G does not cover the Part B deductible. Plan F may technically cover more, but many people consider Plan G to be a better value. Yes, you will need to pay your Part B deductible upon your first outpatient visit, but after you pay the deductible, you won’t need to pull your wallet out for the remainder of the year. Since you have to pay the Part B deductible yourself, Plan G has lower monthly premiums, and you could save more than $400 a year! The standard Part B deductible for 2019 is $135.50, so the savings from choosing G over F significantly outweighs the cost of the deductible.

Is Medicare Going Away?

The only Medicare plans going away in 2020 is Plan F and Plan C. We get it, Medicare coverage and plan options can be confusing and stressful. Policies are constantly changing, and healthcare will continue to evolve. At Medicare Plan Finder, our agents are kept up to date on all the plans in your area and can help you find a plan that suits your needs and budget. If you’re interested in arranging a no-cost, no-obligation appointment, click here or give us a call at 833-438-3676.

This blog was originally published on 10/23/18 but was updated on 7/11/19.


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