2017 Medicare Supplement Plans | Any Changes to Medigap?
If you just started researching Medicare Supplement insurance or you already have Medigap coverage, you’ll be pleased to know there aren’t any significant changes to 2017 Medicare Supplement plans.
One of the greatest safety nets put in place by CMS (Centers for Medicare and Medicaid Services) is the standardization of Medigap plan benefits. So, for 2017, all Medigap plan benefits will remain the same.
That means if Medicare approves your claim, then your Medigap plan is required to pay according to the Outline of Coverage established for your lettered plan (for example, Plan F, Plan G, Plan N).
For instance, if the Part A Hospital Deductible increases, and your Medigap plan covers the Part A deductible, it will automatically adjust to pay the new deductible amount. This is another great safety net put in place by CMS.
And, likewise, if you have Plan F or Plan C, those plans will also automatically adjust to pay the increase in the Part B deductible ($183 in 2017).
Will there be any new Medigap Plans in 2017?
There aren’t any new 2017 Medicare Supplement plans. The 10 standardized plans still remain. However, you may begin hearing more about Medigap Plan D in 2017.
Now, this isn’t Part D (the drug plan), it’s Medicare Supplement Plan D. It would be nice if CMS gave this plan a different letter to make it less confusing. Nonetheless, it’s Medigap Plan D.
And, some insurance carriers are beginning to sell it. But, as of now it’s rate is still not very competitive. However, if insurance companies can reduce the rate and make it lower than Plan G, it could be worth a look.
2017 Medicare Supplement Plan Rates
This is always a popular topic. But, it’s important to note that not all Medigap companies increase rates on January 1.
When you hear about first of the year changes, it’s usually in reference to Medicare Part D (drug plan) and Medicare Advantage Plans (HMO /PPOs).
Keep in mind that Medigap rate adjustments can happen any time of the year. It all depends on when the insurance company files their rate request with the Department of Insurance.
In 2016, we saw rate adjustments every month as they were approved by the Department of Insurance. The good news is most insurance companies give one rate increase a year. And, some may even reduce their rates on Plan G and Plan N.
Speaking of Plan G and Plan N, these plans will probably continue to grow in popularity and grab more of the Medicare Supplement market share in 2017, which may mean Plan F will incur rate increases that aren’t as favorable.
However, it all comes down to the insurance company and how they manage their Medigap plans and Medical Loss Ratios when determining their rate increases.
2017 Medigap Plans | BONUS TIP
If you’re concerned about buying a Medigap Plan and getting a rate increase a couple months later because insurers can raise rates any time of the year — don’t worry.
Most insurance companies offer a 12 month rate lock. This means your rate is secure for 12 months from the policy effective date. Just make sure you add this to your list of questions when comparing companies.
Thank you for reading 2017 Medicare Supplment Plans. REMEDIGAP is proud to provide valuable information so you can make informed decisions about your Medicare benefits.
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