In 2010 Medicare initiated changes to the available standardized Medicare plans a person could buy from various private insurance companies. This was in part due to the Medicare Prescription Drug, Improvement, and Modernization Act. The most notable change for most beneficiaries was Medicare Supplement Plan J being replaced by the new Medicare Supplement Plan F.
What Is Medicare Supplement Plan J?
Medicare Supplement Plan J was the best plan in terms of the coverage and benefits a Medicare beneficiary could buy for many years. It offered the most extensive benefits beyond that of Original Medicare. People on this plan often have zero out of pocket costs other than their monthly premium as the plan covers all of Medicare’s deductibles, co-pays, and co-insurances
What Is Medicare Supplement Plan F?
Plan F is often referred to as the “full coverage plan” or “Cadillac plan” because it pays for the remaining part of healthcare bills that Original Medicare does not cover which is around 20%. It is important to note that not everyone can purchase this plan, you must have been eligible for Medicare Parts A and B before January 1st, 2020 to do so.
Medicare Supplement Plan J vs. F
The chart above shows the benefits covered under both a Medicare Supplement Plan J and those covered under a Medicare Supplement Plan F. Medicare Supplement Insurance Plan J coverage provided two main benefits that are not found in Plan F:
With the changes in Original Medicare’s coverage of those, Plan J essentially became obsolete. With the advent of Plan F keeping J open to new applicants just didn’t make sense.
Is Keeping Medigap Supplement Plan J An Option?
With the discontinuation of Medicare Supplement Plan J, current policyholders are “grandfathered,” meaning you can keep this coverage as long as you pay your premiums.
Switching to Medicare Supplement Plan F is the better option!
Beneficiaries who are enrolled in Plan J can continue in the plan but, between annual age-attained increases, rate increases due to claims paid out as the original pool ages and seek more treatment and general statewide increases, Plan J has become an economic disadvantage to many. Beneficiaries who are healthy enough to replace their coverage with a Medical Supplement Plan F are often shocked by the savings they see.
Still Not Convinced?
If you are fond of the benefits of J, we understand it was a great plan when available for purchase. But, Plan F is another great option to lower your costs without losing any actual benefits except for the now redundant and seldom utilized at-home recovery and preventive care. If you were eligible for Medicare Parts A and B before January 1st, 2020 now is the time to compare your rates.
Tagged: Medicare Supplement Plan F, Medicare Supplement Plan J, Medicare Supplement, Switching to Medicare Plan F, Medigap Plans