The effects of Medicare supplement changes for 2020.

The most recent change brought about in the Medicare world is the elimination of Medicare supplement plans F and C. This means that these policies will not be available to people becoming eligible for Medigap from 1st January 2020. This means that from 1st January 2020, the sale of policies covering Part B deductibles will be prohibited. The companies who try to sell these policies after the mentioned period will be subject to fines, imprisonment or civil penalties no more than $25,000.

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The effect of this depends on the eligibility date, resident state, health status, and current Medigap provider. Provided below are the effects:

  • State of residence:

A lot of people might drop Plan F and try to purchase Plan G because of agents who might convince them that it is a better idea but it could be just for business. If the state of residence allows an open enrollment on birthdays than keeping Plan F makes more sense. The rule allows people to switch from one Plan F to another Plan F during the open enrollment without any underwriting questions. This also helps people to stay away from any possible rate increases by carriers.

  • Health status:

Everyone has some health issues in his or her lifetime. But if currently, a person does not have any health issue than it will be easier to purchase any Medigap policy as long as they pass the underwriting questions and review.

  • Eligibility date:

If anyone becomes eligible before January 1st, 2020 then they can buy Plan F or C. So these plans do not become closed risk pools and new beneficiaries are allowed to join. So everyone who is eligible for Medigap policies can purchase Plan F or C but will be closed after 2020 as it won’t be a purchase option anymore. This is also easy to understand. The people who become eligible for Medigap policies will have to find an insurance agency and also pick up the plan that suits the needs best. Guaranteed issue rights will be applicable to plans G and Plan D. Plan G has become fairly popular as the plan was not open to Guaranteed issue rights which made the rate increases or decrease more stable.

  • Current insurer:

Insurance companies rate Medigap plans using the below mentioned three ways:

  • Community rating: this means that everyone has the same premium for a particular policy taken through the same insurer. This is for the people with the same zip code and regardless of age.
  • Issue-age rating: This means that the premium will be based on the age at which the plan was purchased. In short, if a person wants to change policy at the age of 75 than the rating will be according to the current age.
  • Attained-age rating: This means that the rate is based on current age.



When it comes to insurance professionals, the marketing opportunities are generally seen as always turning out to be positive. Bringing into the insuring public millions of previously uninsured and underinsured younger people may be a good thing. Supplementing health insurance for seniors will be there. We need to work hard at staying in the game and not getting squeezed out by federal competition. All people out there will certainly still need competent financial services professionals, maybe even more than at present.

There are those in professional positions of economics, demographics, medicine, actuarial science, and other disciplines who think that any public option may not drive out the insurers, especially knowing that private enterprise, ingenuity, innovation, increased efficiency, would allow the private sector even to drive out the public option. Look at how the Post Office, Medicare, Medicaid, VA hospitals, Social Security, and other entitlements have worked out. Remember that trillions of unfunded liabilities and where that has put the nation and the American People. As these liabilities keep coming due, they increase the federal budget! This doesn’t sound like great efficiency.

Finally, in considering Medicare advantage Plans 2019, which help can be found at there is this prediction regarding earned and renewal compensation. Don’t look for some sudden drop off just because of Reform. This author has found from experience that most people are quite cautious and suspicious of new programs and will tend to retain what they have for just as long as they can, until they gain confidence in such programs, or are forced into them. Even then, many, if not most, will still retain current health insurance coverage in some form to pick up what Reform does not. That was this writer’s great surprise with Harris County here in Texas, when in 1970, the County government replaced an outdated and woefully inadequate set of fringe benefits with full comprehensive coverage. Most all the supplemental coverages that were marketed to large numbers of employees from 1965 to 1970 remained on the books for many years. That is likely to happen in our national future.

Seniors should not worry about choosing the right plan being difficult. There is plenty of information on the Internet with detailed answers to their questions and insurance plans with very competitive rates suitable for any budget. Health planning should be taken seriously and handled with care in order for seniors to make the right decision – medicare advantage plans handle this.


In the first part, things will proceed at more or less normal conduct of business in an atmosphere of continuing inflation and increasing taxes. As practitioners, we can expect to market the same or similar coverages as we do now. Adverse Selection(taking into account pre-existing conditions) will still be there to control premiums on life, individual, family, group healthcare, disability coverage, long term care insurance, retirement plans(more on this later), to mention the prominent ones. We still will be doing our due-care, due-diligence, financial planning, fact finding, observing compliance, and doing what is best for the client. There are going to be less people and businesses with which to work, and they will have less money with which to do things. Remember, the client always comes first – words to live by.

Considering Medicare advantage Plans 2019, then visit are several perspectives of view here. Of course, we tend to owe it to those who favor us with their business to let them know what is coming as soon as we know what is in store for them and for ourselves. For the most part, we will try to continue as before – for about the next several years. After that, things begin to get very different.

In the second part however, health insurers drop Adverse Selection and pre-existing conditions no longer play a part in the health underwriting process, at least for much of the individual, family, small group medical insurance, and Medicare Supplementary coverages. We’ll all most likely be undergoing training, certification testing, and more state/federal regulation. There’s an upside to all of this. As long as the health insurance industry remains in play, we should be able to make as much or even more money. Nobody knows what the effect of some U.S. Health Insurance Company, Co-op, or Exchange might have on the viability of the health insurers. The CBO states that some very small percentage of the public will enroll in the Public Option plans. That remains to be seen. Many people will be subject to non-enrollment penalties and fees. . It may be that, since the great majority of Americans probably generally qualify by providing medical evidence of insurability anyway, the impact of accepting all applicants by the commercial insurance companies may not send the overall individual/group premiums skyrocketing (an outcome with which this author does not agree). Those who can’t afford health insurance may get federal subsidies.



The collapse of some 3rd world country’s currency, say the Peso, not long ago, lead to black markets, swap meets, trading for needed goods with hard assets, such as gold, bartering and trading in kind, not to mention increases in violence and crime. When new prices and wages readjust to some new currency, the resultant pricing of goods and services is extremely unfavorable to individuals and businesses. One can hope and pray that this does not happen or at least is some years away. Some experts suggest anything from 2 to 20 years—-read: nobody knows for sure! That said, this leads to strategies that we in the financial services industry can and should probably look into and maybe adopt. If all this sounds like gloom and doom and just too ridiculous, let me assure readers that this writer has done his research, can back it all up, and is most assuredly not making it all up as he goes along! Independent corraboration and documentation on all of this is readily available on the internet, libraries, university papers/archives, and other public records.


Get information on supplement plans at

Here are some practical suggestions for Financial Services Professionals. While nobody can predict the future, this portion of the narrative is best described within some arbitrary time frames. This time division is established for specific reasons. At the time of this writing, the U.S.

Government is poised to pass and place into effect a national healthcare/health insurance reform act. It doesn’t much matter whether or not one is in favor of this particular piece of legislation or some others, reform is necessary and will come very soon regardless of what the final act turns out to be.

The projected costs of the one that looks like it will become the law of the land, warts and all, is estimated at between $1 and $2 trillion over the next 10 years. It will no doubt end up by 2019 considerably more. If it doesn’t, it will stand alone among all the U.S. entitlement programs in the history of the Republic to come in at or below the CBO cost estimates. Look for increasing income taxes, fewer paychecks to tax, very slow employment recovery, very fragile equities markets, more federal currency creation, more inflation, weakening U.S. Dollar. That is the context in which we find ourselves and determines what we do as financial services advisors and implementers. Good luck. That said, let’s discuss the first part.



The nationwide debt stands at several trillions, while the federal finances shows in the neighborhood of even more. To get an idea of what these liabilities mean, consider that this funding is what must be contractually paid out in entitlements over the lifetime of those presently enrolled in these programs, say, from now and over the next 20 to 30 years. And that will become progressively larger as the Baby Boomers begin checking into the systems.

Medicare supplement Plans for 2019

This is merely the highlighted treatment of the issues and doesn’t take in figures on the levels below the federal programs and subsidies: state, and related deep concerns over inflation, tax increases, brain drain, not to mention the industry handouts/loans, funds to individuals and non-governmental organizations under Acts in force, such as new mortgages and existing mortgage relief.

When you imagine Medicare supplement Plans 2019, like those found at see, and hear the word “untenable”. Another phrase is the degrading of the currency. More so another is “breaking the buck.” Are these figures actually important to us? Well, yes. One example will suffice: the interest alone on just the national debt is billions of dollars a year. And that is going to get much higher. Just recently on CNBC, a professor of finance designated the U.S. Dollar as fiat currency, which it is. Watch just about any television station and note all the advertisements about gold. Yet, many Americans just roll on as if everything is going to be just fine. Let’s hope for that miracle. The American People have been through some very difficult times over the past 250+ years and have managed to rebound. This could happen again. This time, however, things are quite different and difficult.

This does not mean that Americans should just roll over, play dead, and let the federal government take care of everything. As a nation, will we file for default and a kind of national bankruptcy? This may be a legitimate scenario; and it could be solved through establishment of a new currency sometime in the future, after everything gets paid off in near worthless U.S.

currency. But, nations and the people in them get hurt badly. Russia, Panama, Argentina, Germany, Cuba, all went through this, and the people there know just how bad this is: a national nightmare from which one cannot awaken. In this event, it almost seems like aging is a thing to be concerned about.