Medicare Supplement (Medigap) High Deductible Plan F

Medigap Plan F is also a Medicare Supplement insurance that can be sold with a new high-deductible option. If you have come from high-deductible or health savings account-qualified plans in your workplace, you may be interested in this plan. It provides the most comprehensive coverage you can get on the market, commonly known as a first-dollar plan.

However, if you are new to Medicare, you do not have access to this version of Plan F. You are no longer eligible for plan F if you weren’t a Medicare beneficiary before 1st 2020. After 2020, plan F is no longer on the market for people new to Medicare, due to MACRA, and therefore you are no longer available to the High Deductible version either.

What Is the Annual Deductible Amount?

The only difference between regular Medigap Plan F and High Deductible Plan F is the deductible. With this plan, you have to pay Medicare-covered costs like coinsurance and copayments up to the deductible amount before your plan will bear the expense. In 2023, the deductible amount for High Deductible Plan F is $2,700. Therefore, you are obligated to cover all out-of-pocket expenses before you get 100% covered. The first out-of-pocket you are obligated to pay is an annual Part B deductible which is 226$ in 2023. Medicare adjusts this deductible each year, so it increases a little over time.

 

How Does This Plan Work?

Like all Medigap plans, this High Deductible counterpart increases your Original Medicare benefits. So, Medicare will pay its share, and you will pay yours. Medicare still pays 80%.

Once you hit the deductible for this plan, you will get the same coverage as a standard Plan F . Since the deductible is so high, expect to pay a lower premium for a High Deductible Plan F plan. Essentially, you are paying more out-of-pocket costs upfront so that you pay less each month (your monthly premium costs are lower).  The average cost may range from 40$ to 80$ a month.

Medigap High Deductible Plan F Benefits

After you pay the first $2,700, you get these benefits:

  • First three pints of blood
  • Part A deductible
  • Medicare Part B copayment
  • Part A hospice care copayment
  • Part B Deductible and excess charges
  • Skilled nursing facility care coinsurance
  • Foreign travel emergency (up to plan limits)
  • Medicare Part A coinsurance and hospital costs (up to an additional 365 days after Medicare benefits are used up)

Those are the same benefits that are normally included in Medicare Supplement Plan F.

 

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Why Choose This Plan?

You may wonder why a person would want a plan with a $2,700 deductible. When you choose a High Deductible Plan F, you will have lower premiums. This concept appeals to those who have a substantial amount of retirement savings. These people can usually afford to spend money out of their own pocket in a year of greater healthcare usage.

Note that pricing for this plan varies among different insurers, and not all carriers have this particular plan. If you are no longer eligible for this type of plan but are intrigued to buy a high-deductible policy, the plan G version of it may be a suitable option. Plan G is the second most comprehensive plan on the market to new Medicare beneficiaries. 

Turning 65 Solutions Can Help

We want to make sure that you are selecting the right Medicare plan for your needs. Insurance company like Turning 65 Solutions is here to advise you in the best way possible so you can get an informed decision. Some clients, for example, change their minds after a few months and want to apply for a regular Plan F. We are here to help you compare the benefits and drawbacks of your options. It is important to receive the best deal for your situation and keep the process as smooth as possible.

Give us a call at 830-328-4353!