Medigap plan F is being phased out for new enrolees as of Jan 1, 2020. There is some discussion that plan F will then become a 'death spiral' insurance plan. The sickest individuals currently in plan F will remain in that plan, not switching to another plan because of higher premiums due to their medical condition, health costs for plan F will increase forcing premiums to increase faster than other medigap plans.
Anyone can switch from plan F to plan G, but the premium each person pays is determined by medical underwriting once past the age 65 open enrollment period. So sick individuals currently in plan F answering 'yes' to some of the health questions in the medigap application will pay much higher premiums then those who answer 'no' to the health questions, and may then choose to stay in plan F resulting in plan F having a higher percentage of sick folks then other plans - thus the 'death spiral'.
Is this a realistic scenario? Comments?
Anyone can switch from plan F to plan G, but the premium each person pays is determined by medical underwriting once past the age 65 open enrollment period. So sick individuals currently in plan F answering 'yes' to some of the health questions in the medigap application will pay much higher premiums then those who answer 'no' to the health questions, and may then choose to stay in plan F resulting in plan F having a higher percentage of sick folks then other plans - thus the 'death spiral'.
Is this a realistic scenario? Comments?