Medigap High Deductible Plan F is a Medicare Supplement Insurance plan that provides coverage to help fill the gaps in Original Medicare (Part A and Part B) coverage. It is a high-deductible version of the popular and comprehensive Medigap Plan F. The plan provides the same coverage as standard Plan F after you have paid a high deductible out of pocket. It is designed for people who want comprehensive coverage but are willing to pay a higher deductible in exchange for lower monthly premiums. In this plan, you can get coverage for many out-of-pocket expenses, such as coinsurance, deductibles, and other healthcare costs that Original Medicare does not cover. However, the high deductible may make this plan less suitable for people with frequent healthcare needs or limited financial resources.
Have in mind that there is also this version of Plan G – Medicare Supplement high-deductible Plan G.
High Deductible Plan F Pros
The Medigap High Deductible Plan F has several potential advantages:
- Lower monthly premiums
High Deductible Plan F usually has lower monthly premiums than the standard Plan F. This can be beneficial if you want comprehensive coverage but are looking for a way to save on your monthly healthcare expenses.
- Comprehensive coverage
Like the standard Plan F, the High Deductible Plan F offers comprehensive coverage for many out-of-pocket expenses. Once you reach the high deductible, the plan covers 100% of the Medicare-approved amount for covered services.
- Guaranteed renewable
High Deductible Plan F is guaranteed renewable, which means that as long as you pay your premiums, your policy cannot be canceled, even if you develop health problems.
- Flexibility
Like other Medigap plans, High Deductible Plan F allows you to choose any doctor or hospital that accepts Medicare, without the need for referrals or network restrictions.
- Predictable costs
With High Deductible Plan F, you know exactly how much you’ll have to pay out of pocket each year, since the high deductible is a fixed amount. This can help you budget for healthcare expenses more effectively.
To conclude, Medigap High Deductible Plan F can be a good option for some Medicare beneficiaries, especially those who are in good health and are looking for a way to save on their monthly healthcare costs. As you can see, the plan provides comprehensive coverage for many out-of-pocket expenses once you reach the high deductible, which is a fixed amount that you pay out of pocket each year. This can be beneficial if you want the peace of mind of knowing that your healthcare expenses will be covered, but are willing to pay a higher deductible in exchange for lower monthly premiums. Since the plan is guaranteed renewable it provides flexibility to choose any doctor or hospital that accepts Medicare and offers predictable costs, which is beneficial if this is what you value in an insurance plan.
High Deductible Plan F Cons
While Medigap High Deductible Plan F has several potential advantages, it also has some potential disadvantages to consider:
- High deductible
The plan requires you to pay a high deductible out of pocket before it begins to provide coverage, which can be a disadvantage for people with frequent healthcare needs or limited financial resources. In 2023, the deductible for this type of plan is limited to $2,700.
- Uncertainty about out-of-pocket costs
Because the amount you pay out of pocket each year can vary depending on your healthcare needs, it can be difficult to predict your total out-of-pocket costs for the year.
- Limited availability
High Deductible Plan F may not be available to new Medicare beneficiaries after 2020, due to changes in federal law that eliminate coverage of the Part B deductible for new enrollees in Medigap plans.
- Plan F coverage may end in 2020
Plan F was terminated in 2020, so only those who were eligible for it before January 1, 2020, can still enroll in this plan.
- No coverage for prescription drugs
Like all Medigap plans, High Deductible Plan F does not cover prescription drugs. You will need to enroll in a separate Medicare Part D plan to get coverage for prescription drugs.
High deductible Plan F Costs
The costs of Medigap High Deductible Plan F can vary depending on your location and insurance provider. In addition, the high deductible amount may change from year to year. However, here are some general costs that you can expect for High Deductible Plan F in 2023:
- Monthly premiums: The monthly premiums for High Deductible Plan F may vary widely depending on your insurance provider and location, but they are typically lower than the monthly premiums for the standard Plan F. The exact amount of the monthly premiums can vary based on several factors, such as your age, gender, and location.
- High deductible amount: The high deductible amount in 2023 is $2,700. This means that you must pay this amount out of pocket before the plan starts covering your out-of-pocket expenses.
- Other costs: Once you have reached your high deductible, High Deductible Plan F covers the same benefits as standard Plan F, which include coverage for Medicare Part A and B deductibles, coinsurance, and copayments, as well as coverage for certain foreign travel emergency expenses.
Is High Deductible Plan F The Right Choice For You?
We have now listed the pros and cons of this plan but in the end, the most important thing is what these facts mean for you. It would be best to learn about this plan’s benefits and reflect on your healthcare needs so that you can make a decision about whether or not this plan is the right one for you. If you are in good health, willing to take somewhat of a financial risk, want predictable costs, and travel often, meaning you have a great need for flexibility, then this plan is more than beneficial for you.
It’s great to shop around and compare the costs and benefits of different Medigap plans before choosing one that works best for your individual needs and budget. Additionally, it’s important to note that Medigap High Deductible Plan F, as well as regular Plan F, may not be available to new Medicare beneficiaries after 2020, due to changes in federal law that eliminate coverage of the Part B deductible for new enrollees in Medigap plans.