New Changes in 2020!

New Changes in 2020!

So here we are in 2020! If you can believe that... but with the new year comes new changes to Medicare and your health insurance. You've probably gotten a letter in the mail already, but some changes occurred to the Part A and B Deductibles, in which they increased (you probably could've guessed that). If you have been on Medicare and have a Plan F Supplement, you're in luck! None of these changes make a difference. Your Plan F Supplement will pay for all of your medicare-approved charges, no matter the increases.

Now, if you have a Plan G Supplement, the annual deductible for 2020 has increased to $198. This will be the amount you have to pay out of pocket before your supplement kicks in and returns to 100% coverage. In regards to the other Part A Deductible increases, those do not matter to Plan G Supplement holders either. Medicare Part A is free to individuals who have at least 40 calendar quarters of work in any job where you paid Social Security taxes. The only increase Plan G Supplement holders have to worry about is the increase from a $185 annual deductible to $198 in 2020.

Will My Plan F Premium Raise?

We have gotten this question a lot so far, and to be honest, nobody will be able to give you a definite answer. According to some studies, the Plan F premium will increase because it is currently being discontinued for new members to Medicare starting January 1, 2020. If Medicare is choosing to discontinue the Plan F Supplement, it only makes sense that, over time, the premium may increase for the plan they want off the market. None of this has been confirmed, and your Plan F premiums may very well stay consistent, but it is always a concern.

If you happen to see a high increase on your Plan F Supplement, it might be time to compare prices on a Plan G Supplement and see if there is a sizable difference. A Plan G Supplement will require you to pay $198 out of pocket for the year, but the savings in premium may be worthwhile. Give us a call or stop in if you have any questions about your current supplement!

CHANGES TO THE PART D DONUT HOLE

In addition to the changes to Medicare Supplements, there will be (good) changes to the Part D (Prescription Plan) Donut Hole!The "Donut Hole" is the nickname given to the part of your Part D plan in which your costs are the highest. As the Donut Hole closes, the percentage that you pay in the coverage gap will decrease.

If you're in the Donut Hole, you will now get a discount on your brand-name drugs and additional savings on your generic and brand-name drugs until it's officially closed in 2020. Manufacturers will continue paying large percentages of the drug, while Medicare drug plans will increase the amount they cover.

Currently, Medicare pays 56% of the price of your generic drugs while you're in the Donut Hole. You're responsible for the remaining 44%. In 2020, the number you will be responsible for is only 25% of the cost. This results in a huge saving for Part D beneficiaries in the Donut Hole. That is a huge savings! From research, this seems to be standard with Medicare itself, so all plans should show the same savings. As a reminder, your Part D Prescription Plan can only be changed during the Annual Enrollment Period which is from October 15th through December 7th. If you see increasing prices in your prescription prices or you have a change in medication, come see us in October so we can review your plan!

Give us a call at (815) 673-1237 or stop in our office at 415 N. Everett St., Streator, IL 61364 for any help with your health insurance!

Tyler Ringle

Liptak Insurance