Congress Ends Coverage of Medicare Part B Deductible

Medicare beneficiaries typically purchase “Medigap” insurance, which pays for most of Medicare’s deductibles and copayments.  However, Congress recently passed legislation that will no longer allow Medigap plans to offer coverage of the Medicare Part B deductible, beginning in 2020.  Current Medigap policyholders and those buying policies before 2020 will still be eligible for the deductible coverage after that date. 

This new change is to help pay for the “doc fix” legislation that overhauls the way Medicare pays doctors and that is expected to cost $200 billion over 10 years.  The reasoning behind making Medicare beneficiaries pay the deductible themselves is that it will make them rethink the decision to go to a doctor and perhaps costing the Medicare system superfluous expenses.

See Congress Schedules End to Insurance Coverage of Medicare Part B Deductible, Elder Law Answers, Apr. 17, 2015.