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Articles From Lumsden McCormick

How Medigap Choices Have Changed

What you need to know about Plan F and Plan G.

Provided by Jeffrey M. Budzinski, CFS®

As many may recall, seniors who previously enrolled in Medicare are facing some changes.

Medigap Plan F might not be sold after 2020 and Medigap Plan G will be undergoing some changes.1

These changes only impact new Medicare enrollees, however. If you enrolled in Medicare prior to 2020, and have Plan F or Plan G coverage, you can keep that coverage.2   

Why do people like Plan F? Plan F is basically a “Cadillac plan”: it is not cheap, but it lets you see any doctor or hospital that accepts Medicare patients, and the upfront cost is the total cost. If you have Plan F coverage, it’s rare to be surprised by subsequent requests to pay a deductible, a copayment, or coinsurance.2  

How does Plan G differ from Plan F? While both plans provide similar coverage, one of the many differences comes down to dollars and cents. Plan G asks you for the $198 Part B deductible while Plan F does not.3

According to Medicare.gov, Plans F and G also offer a high-deductible plan in some states. With this option, you must pay for Medicare-covered costs (coinsurance, copayments, and deductibles) up to the deductible amount of $2,340 in 2020 before your policy pays anything. But remember, Plans C and F aren't available to people who are newly eligible for Medicare on or after January 1, 2020.4  

Are you thinking about switching Medigap policies? In most cases, you won't have a right under federal law to switch Medigap policies unless you're eligible under a specific circumstance, guaranteed issue rights, or if you’re within the 6-month Medigap open enrollment period. One thing to keep in mind is that you don't have to wait a certain length of time after buying your first Medigap policy before you can switch to a different Medigap policy.

If you do switch you also have 30 days to decide if you want to keep the new Medigap policy. This is called your “free look period” and it starts when you get your new Medigap policy.5

Jeffrey M. Budzinski, CFS®,  Director of Wealth Management, may be reached at 716-856-3300 ext. 112 or jbudzinski@lumsdencpa.com

www.fslumsden.com


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This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting, or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax, or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Securities offered through Avantax Investment ServicesSM, Member FINRA, SIPC.  Investment Advisory services offered through Avantax Advisory ServicesSM.

Citations

1. Ehealthinsurance.com, October 13, 2020

2. Medicare.gov, October 7, 2020

3. CMS.gov, November 8, 2019

4. Medicare.gov, October 7, 2020

5. Medicare.gov, October 13, 2020


 

How Medigap Choices Have Changed

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Jeff has been in the financial services industry for over 20 years. He is a Certified Fund Specialist® from the Institute of Business and Finance and has passed his SIE, Series 6, 7, and 63 exams as well as holding Life, Accident, and Health insurance licenses. He is experienced in qualified plan design as well as custom income strategies and cash flow. Jeff also has significant experience with insurance planning as a strategy to protect wealth and future generations. Jeff has studied modern portfolio theory, which is vital to efficient portfolio modeling, allowing for mean-variable analysis with a mathematical framework that is consistent with individual risk factors. 

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