Why Might Plan F be Going Away?
As we previously mentioned, Medicare Plan F is one of the most popular supplement plans, so why is it going away? Good question. Boomer Benefits explains that it’s all a result of “doc fix” law, also known as the Medicare Access and CHIP Reauthorization Act (MACRA) of 2015. This legislation was passed as a way to help ensure that doctors are paid for providing Medicare services. The goal is to provide incentive for doctors to help Medicare patients by rewarding them fairly.
Unfortunately, previous laws will end up working against this idea by actually decreasing the pay of doctors in the future. Not surprisingly, doctors don’t like this. Due to the fact that their wages are at risk, many doctors have begun to threaten that that they will leave the Medicare program.
To resolve this issue, Congress gathers every year to vote on whether or not to stall the cuts. Up until this point, they have simply pushed the vote to the last minute only to continue pushing the problem off until a later date. Obviously this was not a long term solution and the problem was bound to catch up to them at some point.
The result of this was that they needed to fix the payment of doctors so that they wouldn’t all leave the Medicare program. The reason this decision was so hard to make was because it’s extremely costly. Boomer Benefits estimates this would cost the government around $200 billion over the next decade. The money has to come from somewhere which is why they had to readjust the Medigap policies, in addition to other measures.