Medigap is ‘grandfathered-in’

Passed by Congress earlier this year, the Medicare Access and CHIP Reauthorization Act (MACRA) of 2015 will prohibit the sale of Medicare supplement plans that cover the Part B deductible, beginning in 2020.

However, the prohibition will apply only to those who become newly-eligible Medicare beneficiaries on or after January 1, 2020.

Current beneficiaries with Medigap plans that cover the Part B deductible will be allowed to retain their coverage.

“We want to make sure Minnesota seniors don’t drop their Medigap coverage because of any misunderstanding,” said Rothman. “Beneficiaries who are already eligible or enrolled in Medicare will be able to continue their Medigap plans even beyond 2020.”

Medicare supplement plans are sold by private insurance companies to cover gaps in Medicare coverage.

They help pay for out-of-pocket costs (coinsurance, copayments and deductibles) related to Medicare-covered services.

For Part B, these include physician, outpatient, preventive and some home health services.

Generally, the best time to purchase a Medicare supplement policy is when you first become eligible for Medicare Part B, because lower rates are available, the application process is simplest and coverage cannot be denied due to pre-existing health conditions.