What will happen with Supplement 1 in Massachusetts come 2020?
I've posted this question in multiple forums with no luck... with first-dollar coverage plans going away in 2020 (Plan C, F, and HDF) what will happen to Supplement 1 in Massachusetts? Unlike Wisconsin & Minnesota, coverage for the Part B deductible is included vs being optional riders to add on. I assume Wisconsin & Minnesota will just do away with those riders, but how will Massachusetts handle this? There was an article on AARP (https://community.aarp.org/t5/Health-Archive/What-s-the-Story-With-Medigap-In-Massachusetts/td-p/167...), but it's telling me access denied.
Lindsay, Here is your answer - Hope this helps. You might find somebody in the insurance commissioners office or perhaps your state rep in Massachusetts that can tell you where they are on the new plan design.
There is a Medicare waiver which allows Massachusetts to have these (2) Medigap plans instead of the normal (10) - I think it is (10). Massachusetts government designed these plans under the waiver so it is gonna be up to the Massachusetts government to come up with a new design.
According to the NAIC bulletin to their members on the matter ( National Association of Insurance Commissioners) - and the FAQ included with it -
I am only copying and pasting some of the guidance dated 02/2018 - the rest is at the link so you can review. But it sounds like, from this guidance, Massachusetts will have to devise at least (1) more plan for these "newly eligibles" that does not include the Part B deductible coverage -
The Medicare Access and CHIP Reauthorization Act of 2015 (“MACRA”) was signed into law on April 16, 2015. Section 401 of MACRA prohibits the sale of Medigap policies that cover Part B deductibles to “newly eligible” Medicare beneficiaries defined as those individuals who: (a) have attained age 65 on or after January 1, 2020; or (b) first become eligible for Medicare due to age, disability or end-stage renal disease, on or after January 1, 2020.
This prohibition applies in all states including waiver states. Issuers selling such policies to “newly eligible” Medicare beneficiaries on or after January 1, 2020 are subject to fines, and/or imprisonment of not more than five years, and/or civil money penalties of not more than $25,000 for each prohibited act. For “newly eligible” persons, references in the law to Medigap plans C and F are deemed as references to plans D and G.
. . . . In these past circumstances, Congress has provided special consideration in the case where changes to the Model Regulation require the enactment of State legislation. In such cases, Congress also has consistently provided that instead of one year after the date the NAIC adopts the amended Model Regulation, a State requiring legislation will have additional time. In all cases,States must timely adopt the changes necessary to implement MACRA to be effective January 1, 2020.
The NAIC urges those states that still need to adopt this regulatory change to complete this task as soon as possible. Failure to adopt this regulation can result in the state losing regulatory authority over the provisions of the MACRA amendments.
The FAQ, question #4 says
4. Do the MACRA changes impact waivered states?
Three states (MA, MN and WI) obtained waivers from implementing the standardized Medicare Supplement plans because these states already had statewide standardized plans prior to 1990. Yes, these waivered states must comply with eliminating coverage for the Part B deductible.
States that have received a waiver under section 1882(p)(6) of the Act may continue to authorize the sale of policies that contain different benefits than the standardized benefit packages. However, those States are also required to amend their regulatory programs to implement the new Federal statutory requirements and changes to the NAIC Model Standards as a result of MACRA. (See section 1882(z)(3) of the Act.)