What you need to know now about the “Doc Fix” repeal
President Obama recently signed the Medicare Access and CHIP Reauthorization Act, one of the most significant pieces of Medicare legislation in years, into law. Here’s the short list of how the permanent fix to the “Doc Fix” will affect Medicare providers and members:
Doc pay: The reform package will give doctors a 0.5 percent payment increase in each of the next five years as Medicare transitions to a system that rewards physicians on qualify of care rather than quantity of procedures performed.
Cost to seniors: Currently, beneficiaries with incomes starting at $85,000 (or $170,000 for joint filers) pay a higher monthly premium for Medicare Part B as well as an additional premium for Medicare Part D plans. Beginning in 2018, the new plan will move a higher percentage of program costs to wealthier seniors. Those with an income of $133,000-$160,000 (twice that for couples) will pay 65 percent of total premium costs of the program rather than the 50 percent paid today. Those with incomes of $160,000 -$214,000 will pay 80 percent rather than the 65% under current law. About 2 percent of beneficiaries are expected to be impacted by these changes.
Medicare Supplement changes: Starting in 2020, “first dollar” Medigap policies will not be able to cover the Part B deductible, currently at $147 per year, for new beneficiaries. First-dollar Medigap coverage afforded by standardized Plans C and F is disputed to cause overuse of Medicare services.
The legislation will also impact the Federal CHIP program, the Qualifying Individual (“Q-I”) program that pays Part B premiums for lower-income beneficiaries as well as payments to post-acute providers such as long-term care facilities, rehab hospitals, skilled nursing facilities and home health and hospice facilities.
For a more detailed examination of the new legislation, check out Associate Editor Jennifer Gunther’s coverage here on The Agent’s Advantage. Sales Manager Charlie Ferrel goes more in depth about Medicare Supplement changes tomorrow.
