May 29, 2019

Changes Coming to Med Supp in 2020; Review FAQs

Applies to: Medicare Supplement Plans

As you may know, the Medicare Access & CHIP Reauthorization Act of 2015 (MACRA) was signed into law in April 2015. The law makes changes to Medicare Supplement (Med Supp) insurance plans that go into effect Jan. 1, 2020. The legislation affects those who are newly eligible for Medicare and does not affect those who are non-newly eligiblefor Medicare.

Who Is Newly Eligible?
Anyone who becomes eligible for Medicare on or after Jan. 1, 2020, is considered newly eligible under MACRA. This includes persons who:

• Turn 65 on or after Jan. 1, 2020
• Become eligible for Medicare due to disability on or after Jan. 1, 2020
• Are currently covered by their employer’s group insurance and will turn 65 on or after Jan. 1, 2020

Who Is Non-Newly Eligible?
Anyone who became eligible for Medicare before Jan. 1, 2020, is considered non-newly eligible under MACRA. This includes persons who:

• Turned 65 before Jan. 1, 2020
• Became eligible for Medicare due to disability before Jan. 1, 2020
• Are currently covered by their employer’s group insurance and turned 65 before Jan. 1, 2020

Essentially, MACRA makes changes to the plan options Medicare beneficiaries can choose.

• Plan C, Plan F, Plan F Select and high-deductible Plan F are not available for newly eligible beneficiaries.
• There are no changes for non-newly eligible beneficiaries.

That means:

• Medicare beneficiaries who currently have a Plan C, Plan F, Plan F Select or high-deductible Plan F policy will be able to continue renewing their policies even after Jan. 1, 2020.
• Anyone who becomes Medicare eligible before Jan. 1, 2020, but does not enroll by Jan. 1, 2020, (i.e., beneficiary is still working and has employer insurance) will still be able to get a Plan C, Plan F, Plan F Select or high-deductible Plan F even after Jan. 1, 2020.
• Those who qualify for Medicare on or after Jan. 1, 2020, due to age or disability cannot enroll in Plan C, Plan F, Plan F Select or high-deductible Plan F.

Members who are currently enrolled in Plan C, Plan F, Plan F Select or high-deductible Plan F will get emails the week of June 3 to let them know about the Medicare Supplement changes that are taking place. To learn more about MACRA and to be able to answer questions you may get, see our FAQs.