August 13, 2019  – The Delaware Department of Insurance has 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 (MACRA).  As this act is rather complex, it 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 last month, clarifying the requirements of MACRA.  Listed below are some of the highlights of MACRA.

Please read the following 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 January 1, 2020 or first become eligible for Medicare due to age, disability or end-stage renal disease on or after January 1, 2020.
• As of January 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 January 1, 2020 or first become eligible for Medicare due to age, disability or end-stage renal disease on or after January 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 you if you are currently age 65 or will be 65 before January 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 January 1, 2020.
• Individuals who were Medicare eligible before January 1, 2020 will still be able to keep their C, F or F High Deductible plans and will be able to repurchase those lettered plans on or after January 1, 2020.
• Medigap coverage cannot be canceled and is guaranteed renewable as long as the policyholder pays the premium.
• For more information about upcoming changes to Medigap, please visit https://insurance.delaware.gov/divisions/dmab/ or call the Delaware Medicare Assistance Bureau (DMAB) at 1-800-336-9500 to speak to one of our Medicare counselors.

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The Delaware Department of Insurance protects Delawareans through regulation and education while providing oversight of the insurance industry to best serve the public.

Contact:         Vince Ryan

Sr. Advisor to the Commissioner

Vince.ryan@delaware.gov

Office: 302.674.7303

Mobile: 302.387.7670

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