Medigap Tips: 2017 Medicare Supplement Plans
If you just started researching Medicare Supplement insurance, or you’ve been at it awhile, I’ll give you some tips about what’s changing and what’s staying the same in 2017.
Hi, Joann Quinn, insurance professional and co-founder of REMEDIGAP.com, just here to make Medicare and Medigap a little bit easier…one video at a time.
So, let’s see what’s happening in 2017 with benefit changes, new plans, and rate increases.
Plan benefit changes
Since CMS standardized Medigap plan benefits, they’ll remain the same in 2017.
So, essentially, that means…if Medicare approves your claim, then Medigap is required to pay according to the Outline of Coverage established for your Medigap Plan…when it comes to copays, deductibles and coinsurance.
Now, with that said, as of this recording, an announcement hasn’t been made regarding any increases to Medicare deductibles.
However, if there are increases, Medigap plans adjust according to the Outline of Coverage.
So, For instance, if the Part A Hospital Deductible increases, and your Medigap plan covers the Part A deductible, it will automatically adjust to pay the new deductible amount. This is a great safety net put in place by CMS.
And, Likewise, if you have Plan F or Plan C, those plans will also automatically adjust to pay the Part B deductible if it increases in 2017.
So, are there any New Medigap Plans in 2017?
Well, there aren’t any new plans, it’s still the same 10 standardized plans…however, you may begin hearing more about Plan D in 2017.
Now, this isn’t Part D (your drug plan), it’s Medigap Plan D…and, I can’t figure out why they just couldn’t give it a different letter to make it less confusing, but, nonetheless, it’s Medigap Plan D.
And, some insurance carriers are beginning to sell it. But, as of this video it’s still not super competitive, however, definitely one to keep an eye on in 2017. If insurance companies can get the rate lower than Plan G, it could be worth a look.
Okay, let’s address Rate adjustments
It’s always a popular topic….but, first things first, not all Medigap companies increase rates on January 1.
When you hear about first of the year changes, it’s usually in reference to Medicare Part D (drug plan) and Medicare Advantage Plans (the HMO /PPOs).
But what you need to be aware of is that Medigap rate adjustments can happen any time of the year. So, Let me show you an example of what I’m talking about…
And, as in 2016, Plan G & Plan N will probably continue to grow in popularity and grab more of the Medicare Supplement market share, which may mean Plan F will incur rate increases that aren’t as favorable as G or N. However, it all comes down to the insurance company and how they manage their Medigap plans and Medical Loss Ratios when determining their rate increases.
And, I have one quick Bonus Tip for you…
If you’re concerned about buying a Medigap Plan and getting a rate increase a couple months later (based on the fact that insurers
can raise rates any time of the year), don’t worry…most insurance companies offer a 12 month rate lock. Just make sure you add that
to your list of questions when doing your research.
And, Speaking of research, if you want to learn more about Medicare, sign up for my free
Medicare Ecourse. Where you can learn about Medicare on your schedule. You receive one email a day over 7 days where I cover all the parts of Medicare, enrollment guidelines, penalties and much more.
I hope you found this video helpful, please like it, share it and don’t forget to subscribe so you can get updates when my new videos are added.
Thanks for watching and I’ll see you next time.