The National Association of Insurance Commissioners (NAIC) is trying to help consumers understand the coming 2020 Medicare supplement (Medigap) insurance letter plan shift.
The regulator group has posted a notice on its website about the federal Medicare Access and CHIP Reauthorization Act of 2015 (MACRA) taking effect Jan. 1, 2020.
The notice includes links to a bulletin aimed at consumers, a consumer alert, and a bulletin aimed at agents. The materials were developed earlier this year.
Medigap policies help users of “Original Medicare” coverage pay the co-payments, deductibles and coinsurance amounts included in the Medicare Part A hospitalization plan and the Medicare Part B physician services and outpatient care plan. Issuers are supposed to build each Medigap policy around a standardized template. Federal law has assigned each template a letter.
Traditionally, Plan F policies — the policies with the richest benefits — have been the most popular.
Members of Congress put the Medigap letter plan changes in MACRA because of concerns that some Medigap policies have been too generous, and have been encouraging policyholders to get too much health care.
MACRA includes a provision that prohibits the sale of new Medigap policies that pay the Medicare Part B deductible. In 2020, the Medicare Part B deductible will be $198.
In practice, the MACRA provision has required insurers to end sales of Medigap plans C, F and F High Deductible starting Jan. 1, 2020.