Colorado regulators created a one-time six-month enrollment period running from January 1, 2021 through June 30, 2021 to allow Medicare beneficiaries in Medicare Supplement Plan C or Plan F to switch to Plan D or Plan G. These people do not have to go through medical underwriting when they sign up for their new Medicare Supplement plans.
Who Does This Enrollment Period Apply To?
Do you currently have a Plan C or Plan F Medicare Supplement plan and live in Colorado? You should pay attention to Colorado’s one-time enrollment period allowing people in these plans to switch to their non-Part-B-deductible-covering counterpart plans, Plan D and Plan G.
You probably chose your plans because they were the most comprehensive offerings available to help cover the out-of-pocket expenses from Medicare Part A and Part B. These plans cover hospital costs and Part A coinsurance, Part B copays and coinsurance, your first three pints of blood used in a medical procedure, Part A hospice care, skilled nursing facility care, the Part A deductible, the Part B deductible, and 80% of foreign travel emergency care. Plan F even covers Part B excess charges, which are the costs healthcare providers can charge above the Medicare-approved amount for hospital outpatient care.
Lawmakers decided to phase out the Medicare Supplement plans that covered the Part B deductible, which are Plan C and Plan F. The reason they did this is because they want to make more Medicare beneficiaries pay into Medicare instead of the private insurance companies. This will help the Social Security Administration to continue helping the Medicare program into the future as healthcare continues to be increasingly expensive and the workforce population changes.
Why Switch Medicare Supplement Plans?
While the obvious benefit of remaining with the Plan F or Plan C policies is the coverage for the Medicare Part B deductible, Medicare beneficiaries with these Medicare Supplement plans can expect for the costs of their premiums to rise. Normally, the influx of new enrollees into the plan is what keeps costs down. As of 2020, no new Original Medicare enrollees can join a Plan F or Plan C. That means that if you choose to stick with the Plan F or Plan C, you may see your premiums increase over time more rapidly than the prices for other plans increase.
Yes, switching from Plan F to Plan G or from Plan C to Plan D will mean that you have to pay the Part B deductible, but this is a low cost of $203 in 2021. Paying the Part B deductible going forward will likely cost less than the rising premiums will if you choose not to switch from your original plan to the new offering.
Plan F Compared to Plan G
Plan F offers:
- Part A coinsurance and hospital costs
- Part B copays and coinsurance
- Your first 3 pints of blood
- Part A hospice
- Care in a skilled nursing facility
- Part A deductible
- Part B deductible
- Part B excess charges
- 80% foreign travel emergency care
Plan G offers:
- Part A coinsurance and hospital costs
- Part B copays and coinsurance
- Your first 3 pints of blood
- Part A hospice
- Care in a skilled nursing facility
- Part A deductible
- Part B excess charges
- 80% foreign travel emergency care
Plan C Compared to Plan D
Plan C offers:
- Part A coinsurance and hospital costs
- Part B copays and coinsurance
- Your first 3 pints of blood
- Part A hospice
- Care in a skilled nursing facility
- Part A deductible
- Part B deductible
- 80% foreign travel emergency care
Plan D offers:
- Part A coinsurance and hospital costs
- Part B copays and coinsurance
- Your first 3 pints of blood
- Part A hospice
- Care in a skilled nursing facility
- Part A deductible
- 80% foreign travel emergency care
Why Switch During the Enrollment Period?
Unlike Medicare Advantage plans, which you can enroll in every year, you can enroll in a Medicare Supplement only during your Medigap Open Enrollment or during very specific circumstances, such as this one.
In Colorado, people who are eligible for Medicare, regardless of age, are eligible to sign up for a Medicare Supplement plan during the first six months following enrollment in Medicare Part B. This is known as your Medigap Open Enrollment Period, and during this time you will not have to go through medical underwriting. That means you will not be prevented from buying a Medicare Supplement plan because of past or current medical conditions.
A Medicare Supplement plan covers only individuals, so each partner in a couple would need their own plan. Around one-third of Colorado’s beneficiaries in Original Medicare have a Medicare Supplement plan.
Generally, signing up during the Medigap Enrollment is the only time available to sign up for a Medicare Supplement plan. You can also sign up for a Medicare Supplement plan as a result of specific circumstances which grant you guaranteed issue rights.
Guaranteed Issue Rights
Guaranteed issue rights grant a special enrollment period for people in certain circumstances:
- You have a Medicare Advantage plan and leave the service area or your plan stops giving care in your area
- You have Original Medicare and secondary coverage and the secondary coverage is ending
- You sign up for a Medicare Advantage plan and decide to leave it within the first year
- You have Original Medicare and a Medicare SELECT policy but leave the SELECT policy’s service area
- You dropped a Medicare Supplement plan for a Medicare Advantage plan and decide to switch back in less than a year
- Your Medicare Supplement insurance company goes bankrupt or you lose coverage through no fault of your own
- Your Medicare Advantage plan was not following the rules and you left the plan
Policies that guaranteed issue enrollees can purchase may be limited.
This one-time enrollment period is your opportunity to sign up for a plan with the maximum available out-of-pocket cost coverage. You can only switch once during these six months, so make your decision wisely and after some consideration of your budget and healthcare coverage needs.
For help evaluating your Medicare Supplement options, contact an agent from Medicare Peace of Mind.
