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Medicare Supplement Changes in 2020

Gavel on books

A change in Medicare Supplement law took in place in 2020 affecting Medicare Supplement plans, F and high deductible F.

The Basics

Medicare Supplement plans are sold by private companies to fill the gaps in traditional Medicare Part A and Part B. Medicare Supplement plans help pay for things like coinsurance, copayments or deductibles on Medicare-covered services.

The new law change prohibits the sale of Medicare Supplement policies that cover the Part B deductible to "newly eligible" Medicare beneficiaries on or after January 1, 2020.

Frequent Asked Questions

Why are these changes being made? How will these changes affect my Medicare Supplement coverage? Do I need to change plans? Read the answers to a few of the most common questions we've received about the 2020 Medicare Supplement law changes.

Who is considered a “newly eligible” Medicare beneficiary?

“Newly eligible” is defined as anyone who:

  • Attains age 65 on or after January 1, 2020, or
  • Who becomes eligible for Medicare benefits due to disability or end-stage renal disease on or after January 1, 2020.

Why are these changes being made for “newly eligible” Medicare beneficiaries?

Plans C, F and high deductible F are the only plans that cover the Part B deductible. Individuals enrolled in these plans have no out-of-pocket costs for Medicare covered services. Medicare beneficiaries eligible after 2020 will be required to share in the cost of services by paying for the Part B deductible.

Do I need to change plans if I currently have a Plan C, F or high deductible F?

If you are currently enrolled in a Medicare supplement Plan C, F or high deductible F, you can keep it and the Part B deductible will continue to be covered. These plans are not going away. Your plan is guaranteed renewable. This means as long as you pay your premiums the insurance company cannot cancel your coverage.

Can I purchase a Plan C, F or high deductible F after January 1, 2020?

If you are age 65 prior to January 1, 2020 or eligible for Medicare due to disability or ESRD you may buy a Plan C, F or high deductible F and companies must continue offering Medicare Supplement plans C and/or F after January 1, 2020.

Will I see a significant increase in my Plan C, F or high deductible Plan F premium after 2020 because no new people will be sold these plans?

Your premium rate is based on your individual age, not on the number of younger and healthier policy holders buying these plans. Consumers who currently have Plans C, F and high deductible F can keep these plans and the Iowa Insurance Division does not expect the rates for these plans to dramatically increase.

Will new plans be offered for those “newly eligible” after January 1, 2020?

The high deductible Plan F will be replaced with a new high deductible Plan G. Plans A, B, D, G, K, L, M and N will continue to be offered.

Who can I call if I have questions?

SHIIP is a free, confidential service of the State of Iowa that helps consumers make informed decisions about Medicare and other health insurance coverage, including Medicare Supplements. Contact us by phone at 1-800-351-4664 (TTY: 1-800-735-2942) or email shiip@iid.iowa.gov.

Factsheet

For a printer-friendly version of the information on this page, click the link below to download our factsheet.