Ritter Insurance Marketing, Craig Ritter

House Unveils Bill to Repeal Sustainable Growth Rate; Includes Changes to Medigap

Here is a link to a summary of the bill.

The important piece for insurance agents and insurers is found on page 4 in sections 401 and 402.  Starting in 2020 for new Medicare beneficiaries only, Medigap would not be allowed to cover the Part B deductible (the summary says $147/month, but actually, this is $147 per calendar year).  This would only impact Medicare Supplement Plan C and Plan F and would not impact other plans.

Section 402 increases the cost sharing (by decreasing the subsidization) for Part B and Part D for Medicare beneficiaries with higher incomes from 50% to 65% and up to 80% for very high incomes.  The standard level of subsidization is 25%, so higher income individuals would pay 2.6 to 3.2 times more in Part B ($104.90/month) and Part D premiums (versus the benchmark for Part D which is currently around $30/month.)

Based on current levels, highest income individuals would pay $335.70/month for Part B and an excess payment of $96/month for Part D which would total about $4,000/year more in Part B and D premium payments.

Posted by filed under Medicare Supplement .

© Ritter Insurance Marketing