Department of Insurance releases Medigap clarification – News – Smyrna Clayton Sun Times

The Delaware Department of Insurance received inquiries from Medicare-eligible citizens concerning misunderstandings or misinformation they’ve received from some insurance agents and brokers regarding the Medicare Access and CHIP Reauthorization Act of 2015.

This act has not been determined if consumers have been misinformed or if they did not fully understand what was relayed to them by agents and brokers. The lack of complete understanding can have a damaging effect relative to decision making for Medicare beneficiaries or their caretakers. To help alleviate the situation, Commissioner Trinidad Navarro issued a bulletin to agents and brokers, clarifying the requirements of MACRA.

The following are highlights to better understand how MACRA will change the availability of certain Medicare Supplement insurance plans, more commonly known as Medigap.

“Newly eligible” means individuals who turn age 65 on or after Jan. 1, 2020, or first become eligible for Medicare due to age, disability or end-stage renal disease on or after Jan. 1, 2020.

As of Jan. 1, 2020, the sale of Medigap plans C, F and F High Deductible will be discontinued and no longer available for purchase by “newly eligible” Medicare beneficiaries.

“Newly eligible” beneficiaries who turn age 65 on or after Jan. 1, 2020, or first become eligible for Medicare due to age, disability or end-stage renal disease on or after Jan. 1, 2020, can purchase Medigap plans D, G or G High Deductible as a substitute for Medigap plans C, F and F High Deductible.

The discontinuation of plans C, F and F High Deductible will not affect citizens if they are currently age 65 or will be 65 before Jan. 1, 2020.

The discontinuation of plans C, F and F High Deductible will not affect you if you first become eligible for Medicare due to age, disability or end-stage renal disease before Jan. 1, 2020.

Individuals who were Medicare-eligible before Jan. 1, 2020, will be able to keep their C, F or F High Deductible plans and will be able to repurchase those lettered plans on or after Jan. 1, 2020.

Medigap coverage cannot be canceled and is guaranteed renewable as long as the policyholder pays the premium.

For more, visit insurance.delaware.gov/divisions/dmab or call 800-336-9500.

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