The House Approves a Doc Fix Bill that is designed to discontinue the Medicare Supplement Plan F.

April 9th, 2015

Impact of new Bill to Medicare Beneficiaries:

It will change the way your Doctor and Providers are paid:

In the current system, you’re Doctor and Providers are paid using a “Fee for Service” system, meaning that they are paid by Medicare for every service rendered to you. The new Bill, if approved by the Senate will instead pay your Doctor and Providers a lump sum of money upfront and any money that is not spent on your care will be profit for your Doctor or Providers. The “Doc Fix Bill” will also focus on the “quality” of care provided by your Doctor or Provider, if the quality of care is considered as satisfactory then your Doctor or Provider that rendered the service will be paid a bonus.

Center for Medicare & Medicaid Services (CMS) currently monitors and grades the performance of Medicare Advantage Plans in the form of a “Star Rating”. The higher the Star Rating, the more money the private company offering the Medicare Advantage Plan receives; the better the care equals a larger bonus.

The elimination of “First Dollar Coverage”:

Medicare Supplement Plan F and Plan C pay for all of the copays and deductibles that Medicare does not pay, thus making these Medicare Supplement Plans “First Dollar Coverage”. Both Parties in the House feel that these Medicare Supplement Plans are a key factor in what is considered “over utilization”. The theory, is that because Medicare Beneficiaries with a Medicare Supplement Plan F or C do not have to pay each time to use the Plan, they use it more. Congress thinks that if all Medicare Supplement Plans had a deducible or copay, the Medicare Beneficiary would use Medicare less, thus saving Medicare money.

Starting in 2020, this new Bill will eliminate “First Dollar Coverage”, meaning that at least Medicare Supplement Plans F and C will be eliminated for new Medicare Beneficiaries.

Note, Medigap is another term for Medicare Supplement.

A problem I see with discontinuing the offering of Medicare Supplement Plan F and C is that most of my clients that have one of those Plans are on a very limited fixed income and it is much easier for them to budget their Plan F premium than it would be to try and budget for deductibles and copays for their care. In fact, in 2013 AARP reported that 46% of all Medicare Supplement policy holders had incomes of $30,000 or less.

I also do not love that the Government’s Plan to save Medicare is to discourage seniors from receiving care… Discontinuing the Plan F and C shows that the Government believes that requiring seniors to pay their own Medicare deductible will reduce “utilization”; it might but at what cost? Why should a senior on Medicare who is paying a monthly premium for a Medicare Supplement Plan have to decide if meeting their deductible or paying a copay is worth going to their Doctor?

It is not clear if this new “Doc Fix Bill” will result in the Medicare Supplement Companies to simply stop offering the Medicare Supplement Plan F and C, then continue to offer the popular Medicare Supplement Plan G and the newer Plan N. Or, will this new “Doc Fix Bill” result in Medicare restructuring all of the Medicare Supplement Plans?

It is now more important than ever to work with a Broker that you can count on.

Whether the Senate passes this “Doc Fix Bill” or not, changes are going to start happening. It is important that you work with an Agency, like Senior Healthcare Direct that is going to keep you informed on how these changes will affect you. I own Senior Healthcare Direct, we are a nationwide Medicare Insurance Agency. All of our agents are AHIP Certified by Medicare, licensed in over 30 states, and appointed to offer both Medicare Supplement Plans and Medicare Advantage Plans with all of the top Insurance Carriers. We are paid by the insurance companies, not you.

We will:

  • Educate you on all of your Medicare Insurance options, as well as legislation changes to Medicare.
  • Offer you more options than any other Medicare Insurance Agency.
  • Provide great Service; we will not only help you choose the right Medicare Insurance Plan, we also provide exceptional Customer Service after you enroll.

Alternative to Medicare Supplement Plan F: 

Medicare Supplement Plan G offers the SAME EXACT coverage as Plan F except for one benefit. The only difference between Plan F and G is that Plan G requires you to pay the Part B Deductible (which is only $166.00 for 2016.)

To learn more about Medicare Supplement Plan G, Click: Videos about Medicare Supplement Plan G.

To get a Medicare Supplement Plan G Quote, CLICK FREE QUOTE.

Written by:

Robert Bache, “Medicare Bob”

President of Senior Healthcare Direct

Toll Free Phone Number to speak with a licensed Agent: 1-855-368-4717

Learn more at: www.SeniorHealthcareDirect.com