Last updated on: November 08, 2022
2020 has been a challenging year in Kentucky. Everyone, but especially the senior adult community in Kentucky, has had to cope with changes: various fundamental changes to the daily routines of life, canceled plans, financial worries, health concerns, etc.
One of those changes, which was technically made in 2015 but did not go into effect until January 1st, 2020, was a change in Medicare Supplement coverage – Plan F and Plan C were phased out to new enrollees, which means rate changes for existing enrollees in these and other plans in Kentucky. This change and its consequences are extremely important for both new enrollees and existing Medicare beneficiaries to understand, especially as it pertains to Medicare Supplement rate changes. If you are currently enrolled in a Medicare Supplement Plan in Kentucky or will become Medicare-eligible soon, learning more about this update to Medigap insurance can help you make the right choices about your health and coverage.
We are here to help simplify any confusion you may have over Plan F rate changes and Plan G rate changes in Kentucky! Here at Enroll Medicare, we know how complicated health insurance can be, and we want to make it easy. If you use enrollmedicare.com, we help guide you through comparing plan benefits and rate so that you can make your own informed decision about your coverage, entirely online. You can enroll online from the comfort and convenience of your home!
What exactly is changing in Kentucky?
Congress passed a law (you may have heard of MACRA) in 2015, which prohibits new Medigap plans from covering the Part B deductible in KY. The idea behind this was to reduce Medicare spending and medical overuse; if Medicare beneficiaries have some financial stake in their health care, they are less likely to make unnecessary doctor visits.
Medigap Plans C and F cover the Part B deductible, so these plans were discontinued on January 1st, 2020. After that date, these plans are rendered unavailable to new enrollees.
That means if you turned 65 or became eligible for Medicare due to age, disability, or ESRD (End Stage Renal Disease) after January 1st, 2020, you do not have the option of purchasing a Plan C or a Plan F in KY.
If you already had Plan C or Plan F, you may keep your plan.
If you became Medicare-eligible before that date, you can purchase a Plan C or Plan F, but you will have to pass medical underwriting. If your health is poor or if you have certain preexisting conditions, you may not be able to purchase Plan C or Plan F.
How will it affect plan rates in Kentucky?
Just because you can keep your Plan C or Plan F, or you can purchase one because you pass underwriting, does not mean it is going to be in your best interest to do so. Insurance experts are warning retirees in Kentucky that as insurance carriers adapt to the government’s changes, rate increases will ensue for both Plan C, Plan F, and even Plan G (the new most comprehensive Medigap plan).
It may not make sense initially that Plan G rates are increasing – after all, nothing about the new law going into effect changed Plan G, at least not directly. However, previously, more healthy beneficiaries enrolled in Plan G because it was less expensive than Plan F, and they didn’t need the same amount of coverage that unhealthier senior adults who chose Plan F needed. Now, however, the pool of people coming into Plan G will be less healthy, so insuring them will become more expensive, and insurance companies will charge higher premiums.
Plan F rates will go up (and indeed, already have gone up, in some cases by double digits). New Plan Fs offered are going to be an underwritten product, which means they will be more competitively priced, but existing Plan F rates are increasing. Because no new enrollees – no younger, healthier 65-year-olds in Kentucky are going to be able to purchase Plan F, beneficiaries currently enrolled in Plan F are noticing that it is getting more expensive. This already happened before when Medicare similarly phased out Plans H, I, and J (beneficiaries on those plans saw rate increases over time).
However, rates may not increase at the same time or by the same amount in all states. To find out your best option for coverage in Kentucky, visit enrollmedicare.com and answer a few basic questions. We will match you with top plans in Kentucky! You can also connect with one of our expert agents and discuss your budget and health needs in order to understand more about the different Medigap plan types and choose a plan.
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