The acronym MACRA stands for the Medicare Access and CHIP Re-authorization Act of 2015. Many agents have heard the “MACRA” changes coming to Medicare in 2020, but few know how these changes may impact their book of business. While these changes will alter the options available for some of your newer client’s, we’ll do our best to set you up with the knowledge you’ll need to help them make an informed decision about their Medicare Supplement offerings.
Congress included this to reform the Medicare payment system to share more health care costs with policyholders by no longer allowing “newly eligible” beneficiaries to obtain a Medicare supplement plan that covers the Part B deductible. Eligibility is determined by the beneficiaries Part A date. Medicare Supplement Plans C, F, and High Deductible Plan F will no longer be an option to newly eligible beneficiaries. Clients need not fear if they are already in a Plan F or C, as they are grandfathered in to keep it and anyone else eligible will still be allowed get one.
MACRA has already implemented the transition away from using Social Security numbers as identifiers to reduce the risk of identity theft and fraud. MACRA will change the way Medicare pays health care providers, compensating them on quality of care as opposed to the number of services they perform.
When it comes to guaranteed issue policies, you’ll now see products fall into these same two groups. Those with Medicare Part A prior to 1/1/2020 will be eligible to take a Plan C and F as a guaranteed issue policy, while those with a Medicare Part A effective after 1/1/2020 will be able to take D and G as a guaranteed issue plan. For underwritten policies they will follow the same guidelines of eligibility.
A great way to make sure you are following the MACRA guidelines is to choose electronic enrollments as your platform. The carriers have made this a seamless transition to ensure your client enrolls in the plan they are eligible for.