Is Plan F Going Away?

You don’t hear as much talk about Medicare Plan F as you used to. For that reason, many people think it’s been discontinued altogether. While that’s not quite true, it’s no longer available to all Medicare beneficiaries. And even the ones who are eligible to enroll may want to think about choosing a different plan. 

Who Can Enroll in Plan F?

MACRA of 2015 changed Plan F enrollment guidelines. MACRA stands for the Medicare and CHIP Reauthorization Act. It was passed in 2015 for a number of reasons, one of which was to allow more funding for provider reimbursement. 

While this was a great plan to entice providers to continue seeing Medicare patients, the program had to get funding from somewhere. One way to accomplish this was to increase payments from beneficiaries.

Plan F paid for all leftover expenses from Parts A and B. It pays for the following:

• Part A deductible
• Part A coinsurance and hospital costs
• Part A hospice care coinsurance
• Skilled nursing facility care coinsurance
• Part B deductible
• Part B excess charges
• Part B coinsurance and copayments
• First three pints of blood used in an approved medical procedure
• 80% of a foreign travel emergencies (up to plan limits)

By not allowing any new beneficiaries to enroll in Plan F, the program would force them to choose another plan that had out-of-pocket costs. Anyone who was not enrolled in Parts A and B by January 1, 2020, cannot enroll in Plan F. Individuals who already had Plan F were allowed to keep their plan.

Since Plan F offered more coverage than any other Medicare Supplement plan, many people were initially disappointed they could not enroll in Plan F. However, there are other reasons Plan F is not a popular choice for today’s Medicare beneficiaries.

An Alternative to Plan F

The closest alternative to Plan F is Medicare Supplement Plan G. Its coverage is nearly identical to Plan F, save for one small difference. Plan G does not pay the Part B deductible, which is $226 starting in 2023.

Another good alternative to Plan F is Plan N. Like Plan G, it does not pay the Part B deductible. In addition, it does not cover any Part B excess charges. Excess charges can amount to an additional 15% on top of the Medicare-approved amount for a service. Providers who do not accept Medicare assignment can implement the excess charge. This is a rare occurrence, and there are currently eight states that do not allow the practice of excess charges. Lastly, there are some copays involved in Plan N. Visits to your doctor will cost up to $20, and visits to an emergency room will cost up to $50.

Even if you are eligible to enroll in Plan F, you may want to consider choosing one of these “lesser” plans instead. The reason is that you will likely save more in monthly premiums than the cost of the potential out-of-pocket expenses. For example, if you enroll in Plan G instead, you can often save more than the amount of the $226 deductible.

If you are currently enrolled in Plan F and would like quotes for either Plan G or Plan N, call the Local Medicare Specialists today. We will help you determine if you are a candidate to switch your Medicare Supplement plan and help you find competitive rates.