If Plan F Doesn’t Work Out, Do You Have a Plan G?

BeginEndOn March 31st, 2015 the H.R. 1470- SGR Repeal and Medicare Provider Payment Modernization Act of 2015- was referred to the Subcommittee on the Constitution and Civil Justice. This bill, also known as the “SGR Package” addresses the Repeal and Replace of the SGR formula, CHIP program, and other Medicare reforms. One of the additional proposed Medicare reforms included a provision to Medigap plans that would prohibit “near first dollar coverage” for Part B premiums beginning in 2020, which is one of the major benefits of Plan F. When Medicare recipients have no fear of paying the deductible, they tend to visit the doctor more often- which costs Medicare money. It may be time to start considering our options- if Plan F is eliminated, what is the most comparable option for our customers?

Plan G may be the best solution because the difference between Plans F and G is that Plan G requires the customer to pay the Part B deductible. The price of Plan F is usually priced a little higher than Plan G to compensate for deductible payments which can result in a cost offset, and potentially savings in the long run.

The Senate is set to reconvene on April 13th, 2015 with H.R. 1470 as the first order of business. If the SGR Repeal and Medicare Provider Payment Modernization Act is passed, it may be time to start preparing for the transition from Plan F to G.

To view the Working Framework for SGR Package click here: Working Framework for SGR Package

Posted in Industry News, Legislative News, Medicare Supplements