Jun 20, 2018

Selling “No Gap” Medigap Prohibited In 2020

Sale of “no gap” Medicare Supplement plans that cover the Part B deductible will be prohibited after 2020, as a result of legislation known as MACRA (Medicare Access and CHIP Reauthorization Act of 2015). Continued sale of these “no gap” plans to newly eligible Medicare beneficiaries could lead to civil and criminal penalties.

“No gap” plans like Plan F and Plan C are very popular, so individuals newly enrolling in Medicare may raise concerns about their elimination. While legislative changes could occur before 2020, those responsible for communicating updates to groups and members will want to inform themselves about the upcoming changes, and review all options for coverage, including Medicare Advantage.

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