2020 Medicare Changes – MACRA

What’s happening to Medicare in 2020?  While there’s sure to be more changes to Medicare Supplement Plans beyond 2020, MACRA is making a couple of changes you need to know about now.

So, what is MACRA?  It stands for Medicare Access and CHIP Reauthorization Act of 2015.  Congress reformed the Medicare payment system to share more health care costs with policyholders.  This was by no longer allowing “newly eligible” (see sections below) beneficiaries to obtain a Medicare Supplement Plan that covered the Part B deductible.  In addition, and to reduce the risk of fraud and identity theft, it will also eventually transition away from using Social Security numbers as identifiers.  MACRA will also change the way Medicare pays health care providers.  How?  Medicare will compensate these providers by the quality of care rather than how many services are performed.  It’s quite a nice change, is it not?

“Not Newly Eligible” Information

These are individuals who are currently eligible and enrolled into Medicare prior to January 1, 2020.  There will be no changes to plans for these individuals.  Medicare Supplement Plan C and Plan F are not disappearing.  Current policyholders can continue with their Plan C or F without concern.  Individuals whom are “not newly eligible” will still be allowed to purchase the two plans after 2020!  So just keep this in mind if you do not have these plans by then.  There’s no cause for concern!

The only change for existing enrollees is they will receive a new Medicare card.  They will have an individual and randomly-generated Medicare Beneficiary Identifier (MBI) in place of their Social Security number.  This is to reduce risk of fraud and identity theft!  These new Medicare cards will be issued starting in April, 2018 and through April, 2019.  Be sure to show your new Medicare card to your health care provider(s) promptly at your next appointment!

“Newly Eligible” Information

These are individuals who turn 65 years old on or following January 1, 2020, or anyone who first becomes eligible for Medicare due to age, disability, end-stage renal disease as defined by the Centers for Medicare and Medicaid Services (CMS) on or after January 1, 2020.  Individuals that are “newly eligible” will be prohibited by MACRA the sale of Medicare Supplement plans that cover the Part B deductible.  This means that Plan C and Plan F will not be available to them.  However, they will have access to plans that include some sort of cost-share component, such as Plan G and Plan N.  In conclusion, guaranteed plans for those that are “newly eligible” are as follows: A, B, D, G, K and L.  If you have any questions or to discuss your options are, feel free to contact us!  We’ll be more than happy to assist you.

Questions or Concerns with MACRA?

If you wish to discuss in detail of how this may apply to you, about your options, or any questions about any part of this article, feel free to contact me directly at 888-901-4870 or simply use this online contact form and we’ll get back to you promptly!  As usual, there’s never any fee for our services!  We’re here for you and we’d be more than happy to assist you in whatever way you need!

We’re looking forward to hearing from you!