Medicare Supplement Plan G Quote
Looking for a affordable Medicare Supplement Plan? A alternative to the popular Plan F is a cost effective plan, Medicare Supplement Plan G.
The Medicare Supplement Plan G offers identical benefits as the Plan F with the exception of the PART B deductible of $147 a year. The G will cover all your Medicare approved claims after you pay the first $147.
The premiums for the Plan G are considerably much lower and offer a cost effective alternative. Please click the button above to request information, premiums range from $88 and up depending on discounts that each plan may offer and company.
It is always best to speak to an agent directly, 309 833 1755, a evaluation will be taken and recommendations made from the evaluation.
Medicare Prescription Drug, Improvement & Modernization Act of 2003
In December 2003, President Bush signed the Medicare Prescription Drug, Improvement & Modernization Act (Act) into law. The Act accomplished the following:
- Created a voluntary prescription drug program for Medicare beneficiaries;
- Provided federal subsidies to employers that continue to provide prescription drug benefits to Medicare-eligible retirees;
- Established a new type of tax-favored health savings account (HSA); and
- Made changes to the existing Medicare program.
- This Legislative Brief provides an overview of the key provisions of the Act that most directly affect employers and their benefit plans. It also addresses health care reform changes to the Medicare Prescription Drug Program, the Retiree Drug Subsidy and HSAs.
Medicare Prescription Drug Program
In 2006, Medicare beneficiaries became eligible to purchase prescription drug coverage. Medicare beneficiaries purchase prescription drug coverage by joining a Medicare Prescription Drug Plan or a Medicare Advantage Plan that includes Medicare drug coverage. The monthly premium and drug coverage varies according to the plan in which the Medicare beneficiary enrolls.
Under the Medicare Prescription Drug Program:
- The Medicare beneficiary pays an annual deductible of no more than $310 for year 2014 ($320 for year 2015), plus 25 percent of prescription drug costs between the annual deductible and the initial coverage limit ($2,850 for 2014 and $2,960 for 2015).
- Where the Medicare beneficiary’s out-of-pocket expenses reach the catastrophic coverage threshold ($4,550 for 2014 and $4,700 for 2015), the Medicare beneficiary pays the greater of a five percent coinsurance or a copayment of $2.55 for generic drugs ($2.65 for 2015) or $6.35 for any other prescription drug ($6.60 for 2015).
- As explained more below, beginning in 2011, the health care reform law started closing the coverage gap, or donut hole, that Medicare beneficiaries experience between the initial coverage limit and the catastrophic coverage threshold.Individuals enrolled in the Medicare Prescription Drug Program will also benefit from the prescription drug discounts secured by the Medicare Program, though all drugs may not be covered under Medicare’s program.
- Please refer to the “Medicare Plan Finder” to find and compare available plans. The tool provides users with personalized information about the annual cost of enrolling in different plans based on their current drug regimen. Keep in mind that the health care reform law created additional drug discounts and made changes to the Medicare Part D formulary, beginning in 2011.
- The Medicare Prescription Drug Program contains limits on an individual’s ability to purchase supplemental prescription drug coverage. Medicare beneficiaries with limited income and resources may qualify for Medicare subsidies to help pay prescription drug costs.
Health Care Reform Changes
The Affordable Care Act (ACA) made significant changes to the Medicare Prescription Drug Program. Prior to the ACA, once a Medicare beneficiary’s prescription drug costs reached the initial coverage limit, the beneficiary was responsible for 100 percent of drug costs until his or her out-of-pocket expenses reached the catastrophic coverage threshold. The ACA made the following changes to the coverage gap:
- For 2010, the ACA provided a $250 rebate check for Medicare beneficiaries who reached the coverage gap.
- In 2011, Medicare beneficiaries who reached the coverage gap received a 50 percent discount on brand-name drugs and paid a 93 percent coinsurance for generic drugs.
- In 2012, Medicare beneficiaries who reached the coverage gap received a 50 percent discount on brand-name drugs and paid an 86 percent coinsurance for generic drugs.
- In 2013, Medicare beneficiaries who reach the coverage gap receive a 52.5 percent discount on brand-name drugs (same for 2014, 55 percent for 2015) and pay a 79 percent coinsurance for generic drugs (72 percent for 2014, 65 percent for 2015)
- Additional discounts and subsidies on brand-name and generic drugs will be phased in to completely fill the coverage gap by 2020.The ACA also reduces the growth rate of the catastrophic coverage threshold starting in 2014 and going through 2019. In 2020, the threshold reverts back to what it would have been without the health care reform adjustment. Example: Jane is currently enrolled in Medicare Part A and B. She also elected to enroll in Medicare’s voluntary prescription drug program, where she is required to pay a monthly premium. While Jane lives on a fixed income, she does not qualify for a Medicare Part D low-income subsidy. Jane’s benefits under the Medicare Prescription Drug Program are as follows:
- The following is an example of the Medicare Prescription Drug Program’s current benefit structure.
- In addition, effective Jan. 1, 2011, the ACA requires high-income individuals to pay higher Medicare Part D premiums, similar to the Medicare Part B program. High-income individuals are those with annual incomes of more than $85,000 for singles and $170,000 for married couples.
- Jane pays 100 percent of the first $310 in prescription drug expenses.
- After Jane has met the annual deductible, she pays 25 percent up to $2,850 in prescription drug costs for the year.
- The ACA gradually closes the coverage gap.
- After Jane has annual out-of-pocket expenses totaling $4,550, Jane pays the greater of five percent or $2.55 copay for generic or $6.35 for any other drug during the year.
Federal Subsidies to Retiree Health Plan Sponsors
Employers that provide prescription drug coverage to Medicare eligible retirees may be entitled to receive subsidies of up to 28 percent of prescription drug costs between $310 and $6,350 for 2014 (for 2015, prescription drug costs between $320 and $6,600). The Act requires that the employer’s plan be at least equal to the actuarial value of the standard prescription drug coverage offered under Medicare. The details of how employers would determine if their plan is equivalent and how employers would seek reimbursement can be found on HHS’ Retiree Drug Subsidy webpage.
Employers receiving retiree drug subsidy payments do not pay federal income tax on the subsidy payments. In addition, employers receiving the retiree drug subsidy may generally take a tax deduction for their retiree prescription drug costs. However, under the ACA, employers are not allowed to take a deduction for the subsidy amount starting in 2013.
Health Savings Accounts
Beginning in January 2004, the Act created tax-favored HSAs to be used by employees and their families to pay health care expenses. The following rules apply to HSAs:
- Eligible individuals may establish HSAs. HSAs may be offered through a cafeteria plan. HSAs are a tax-exempt trust. Money in the HSA account accrues interest and is not taxed on its earnings. (HSAs receive favorable tax treatment at the federal level. Some states define income differently than the federal tax code.)
- An eligible individual is a person who: (a) is covered by a high deductible health plan; (b) does not have other health insurance coverage (with some exceptions); (c) is not enrolled in Medicare; and (d) cannot be claimed as a dependent on another person’s tax return. Self-employed individuals may be eligible individuals.
- In 2014, a high deductible health plan must have an annual deductible of at least $1,250 for individual coverage ($1,300 for 2015) and at least $2,500 for family coverage ($2,600 for 2015). A high deductible health plan may provide first dollar coverage for preventive care. For 2014, annual out-of-pocket limits on a high deductible health plan may not exceed $6,350 for individual coverage ($6,450 for 2015) and $12,700 for family coverage ($12,900 for 2015).
- In 2014, eligible individuals may make a maximum annual contribution of $3,300 for individual coverage ($3,350 for 2015) and $6,550 for family coverage ($6,650 for 2015). Catch-up contribution limits apply to eligible individuals that are 55 years of age or older ($1,000 in 2009 and thereafter).
- The Act requires that contribution limits must be reduced by any contributions made to an Archer Medical Savings Account in the same year. HSAs can be offered together with flexible spending accounts and health reimbursement arrangements only under certain prescribed circumstances.
- While eligible individuals cannot contribute to their HSA after they become enrolled in Medicare benefits, they may continue to use the money within the HSA to pay health insurance premiums (not including Medicare supplement coverage), long-term care premiums and health care expenses not covered by insurance.
- The employer and the eligible individual may contribute to an HSA in the same calendar year, subject to annual limits.
- Medical expenses eligible for tax-free reimbursement from an HSA include: (a) medical care as defined in Section 213(d) for the eligible individual, his spouse or dependents that are not covered by health insurance; and (b) certain insurance premiums (for example, COBRA, long-term care and retiree health coverage). Effective Jan. 1, 2011, over-the-counter medicine and drugs, except insulin, do not qualify as medical expenses reimbursable from an HSA without a prescription.
- Distributions made for nonqualifying expenses are subject to income tax and a 20 percent penalty. (Prior to Jan. 1, 2011, a 10 percent penalty applied to distributions made for nonqualifying expenses.)
- HSAs are owned by the eligible individual and, therefore, are portable at termination of employment or upon death.
Retiree Health/ADEA Provisions
As written, the Age Discrimination in Employment Act (ADEA) prohibits an employer from reducing or terminating retiree health benefits because the retiree becomes eligible for Medicare. After a federal court found that an employer had violated the ADEA by providing Medicare-eligible retirees with inferior health insurance coverage as compared to benefits provided to retirees not eligible for Medicare,the Equal Employment Opportunity Commission (EEOC) initiated a review of its policies and interpretation of the ADEA as it applies to retiree health plans.
In December 2007, the EEOC adopted a final rule that created a narrow exemption from the ADEA and permits employers, under the ADEA, to lawfully coordinate retiree health benefit plans with eligibility for Medicare or a comparable state-sponsored health benefit.