(This information concerns Medicare Health Plans. It does not concern you if you are either on an Employer-Sponsored Group Health Plan or an Individual & Family Health Plan)
Medicare Annual Enrollment Period (AEP) 2015
(A) When is the 2015 Medicare Annual Enrollment Period (AEP)?
Once again this year, Medicare AEP will run from Oct. 15th to Dec. 7th.
You may do the following during this time:
- Enroll or change your Medicare Advantage plan (MA-PD).
- Enroll or change your Medicare Rx (PDP) plan.
- Enroll in a Medicare Supplement and PDP plan (the supplement is not guarantee-issue).
(B) Is Medicare Supplement Plan F going away?
Yes, CMS (Center for Medicare Medicaid Services) has announced this year that they will not allow Medicare Supplement Plan F, the most popular supplement plan, to be offered after year 2020.
However, anyone who is already on an F plan at that time will be grandfathered and permitted to keep it indefinitely.
In other words, if you think that you may ever want a Plan F, you must enroll by 2020. If you lapse your F plan before 2020, you will never be able to get it back again. Those who will turn 65 after the year 2020 will unfortunately never be able to experience the benefits of Plan F.
(C) Are rates for frozen Supplement Plan F likely to skyrocket?
Some concerns were raised that the premium for F plans may skyrocket, after 2020, due to there being no new future new entrants into the risk pool. Although this is a possibility, it is unlikely to be a cause for alarm for the following reasons: (1) Unlike under age 65 plans, supplement plans are secondary payers (Medicare is the primary payer) and not subject to the brunt of the risk. (2) In the past when older supplement plans were frozen, such as the Anthem Classic J plan, there was no great increase in rates. (3) After the freezing of Plan F, other plans like G and N will still be available, although these other plans are not as comprehensive as F. (4) Even if premiums should escalate, the Birthday rule allows members to switch to like, or downgrade, plans, guarantee-issue, every year, on their birthday month.
The practical implication is that seniors may keep Plan F and take a wait and see attitude. If rates go out of line, then simply downgrade, guarantee-issue, on their next birthday.
We would be delighted to help you find affordable solutions to your health care needs.
Phil Lee
Lee Health Insurance Services
800-286-7445