D&D Insurance LLC

The Medicare Masters         


Plan F is the most popular plan out there. And as a result, it is sometimes victim to unscrupulous sales/marketing tactics. One of the more common rumors about the plan is that "Plan F is going away!!!", and as a result, it creates an urgency that you "Must buy it now, otherwise you won't be able to!"

Let's get the facts straight about this rumor:

1) Plan F is Going Away in the Year 2020: This is Half True. Plan F is being eliminated as an option by CMS (Centers for Medicare and Medicaid), but only for people turning 65 in the year 2020 and later. People who turn 65 before the year 2020, will always have Plan F as an option.

2) If you don't buy Plan F NOW, you never will be able to: This is not true. If you turn 65 prior to 2020, and you buy a Plan N, for example, you can always switch to a plan F in the year 2020, or later if you ever want to. Plan F will always be available to you. This new rule, only affects people who turn 65 in the year 2020 and beyond.

3) I'm going to lose my Plan F in 2020!: This is another scare tactic to get people to change their plans now. It is usually followed by "logic" that rates will skyrocket, because people are leaving the Plan F block of business, and insurance companies have to raise rates to compensate for people leaving.

The truth is, your plan will be grandfathered in. The same thing happened to Plan J in 2010, and many people still have the plan. If you are happy with your Plan F, then keep it.

4) Plan F rates are going to Skyrocket when they eliminate it: This is a similar rumor to #3, and sometimes is interwoven with it. The rumor basically says that when the insurance companies close the block of business, many people will leave it (for some reason), an the only people that are left are the sick people. Since the companies wont be able to bring in new healthier people, they will need to raise rates on the current customers to offset the claims, and then rates will shoot up.

While this is possible, it takes years for this to happen. I still run into customers who have a Plan J and are paying about the same rate as a Plan F is today. (and Plan J hasn't been around for 6 years!) It is very unlikely that your rates will jump over night. Don't let someone bully you into buying a Plan F with scare tactics.

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