(M.A.C.R.A) changed who can buy a Medicare supplement "Plan F" in all states.
Newly enrolled Medicare beneficiaries will no longer be allowed to purchase insurance plans that cover the Medicare Part B deductible.
Medigap Plan F and Plan C will no longer be allowed because those plans do pay the Medicare Part B deductible of $233 in 2022.
If you currently have a Medicare supplement Plan F, you can keep your existing plan. But only if you are willing to pay the much higher rates charged by the insurance companies.
Congress figured out what insurance companies have known for a long time. Insurance companies have been tracking the benefits paid on claims for decades. And the proof is in the numbers.
When a plan member is required to pay even a small deductible for medical service, the overall plan usage goes down considerably.
Psychologically, the person with no deductible for medical services may think of these services as "Free".
As a result, this person is more likely to use medical services more often and sometimes perhaps even unnecessarily.
Once "It's all free", this person is also more likely to go beyond the $233 deductible and will require additional payments from both Medicare and the insurance companies.
It may seem counter intuitive that an insurance company would charge an extra $30 or $40 a month (around $400 per year) to possibly pay a $233 deductible to Medicare.
However, once you understand how the plan's overall usage comes into play, it begins to make more sense.
And it is for this reason that as an individual, Medicare Plan G is always a better value for you than Medicare Plan F.
This remains true regardless of your individual plan usage.
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