What you need to know about the 2020 Medicare Supplement Changes
The Medicare Access and CHIP Reauthorization Act of 2015 (MACRA) made some significant changes to Medicare. Here’s what they are and how they affect individuals who become eligible for Medicare on or after January 1, 2020.
What is MACRA?
MACRA is a bipartisan legislation signed into law on April 16, 2015 that introduced changes to how Medicare pays providers for seeing and treating traditional Medicare beneficiaries.
What is the purpose of MACRA?
MACRA created the pay-for-performance program that rewards providers for quality over quantity. The focus is on quality, value, and accountability by rewarding healthcare providers for improving their patient’s overall health.
How does MACRA impact Medicare Supplement Plans?
A component of MACRA impacts only newly eligible individuals looking to purchase Medicare Supplement Plan options starting January 1, 2020.
Note: This does not affect those individuals enrolled in Medicare Advantage Plans.
Who is affected by MACRA?
This new legislation defines who is considered newly eligible for Medicare Supplements and who is considered non-newly eligible for Medicare Supplements.
Who is Newly Eligible?
MACRA defines newly eligible as anyone who is eligible for Medicare Supplements after January 1, 2020.
Beginning in 2020, newly eligible Medicare individuals won’t be able to purchase Medicare Supplement Plans that cover the Part B deductible. This includes Medicare Supplement Plans C, F, High-Deductible F (and Minnesota and Wisconsin Part B deductible coverage).
Newly eligible individuals can chose from Medicare Supplement Plans A, D, G, High-Deductible Plan G, and N. The guarantee issue plans that will be available to them are plans D, G and high deductible G, which is a new plan.
Plans D, G and high deductible G will be newly available under the guaranteed acceptance rules for Medicare Supplement Plans.
Who is Non-Newly Eligible?
Those who are non-newly eligible for Medicare Supplements are individuals who qualify for Medicare benefits before January 1, 2020. Their Medicare Supplement Plan does NOT change. NO action is required.
Individuals will still have the same Medicare options as they did before. They will be able to keep their existing plan and will continue to be able to access any plan that covers the Part B deductible. They can purchase Plan C, F and High Deductible F.
Plans D and G are not available under the quaranteed acceptance rules for Medicare Supplement Plans.