With so many different supplement insurance plans available at your fingertips, it can be difficult to know which way to turn and which private insurance provider to progress forwards with. With every Medigap plan offering its own unique list of benefits and drawbacks, and each with different monthly premiums depending on the state it is being sold in, throwing another set of plans into the mix might be the last thing you want.
A high deductible plan can, however, make your life easier and cheaper. Offering typically lower monthly premiums, a high deductible plan essentially provides lower frequent payments if you agree to a high deductible.
This essentially refers to the payment you will pay before your Medigap plan kicks in. In 2020, the High Deductible Plan F deductible fee was $2,340, meaning that the consumer was liable to pay this amount before their plan kicked in and covered the remainder of all eligible expenses. In 2021, this amount is $2,370.
What Benefits Can You Get with High Deductible Plan F
Once you have paid the deductible as explained above, the benefits of High Deductible Plan F are exactly the same as the standard Medigap Plan F benefits. The only difference for consumers is the amount that they are expected to pay before they gain access to the following benefits:
- Medicare Part A coinsurance and hospital costs after Medicare benefits run out
- Medicare Part A hospice and palliative care coinsurance and copayments
- Medicare Part B copayments and coinsurance
- First three pints of blood for medical procedures
- Coinsurance relating to care in skilled nursing facilities
- Medicare Part A and Part B deductible
- Emergency coverage during travel (covering 80% of eligible expenses
- Medicare Part B excess charges
So, why would you opt for high deductible Plan F if the benefits are exactly the same AND you have to pay more in the first place? Well, this is where the monthly premiums come in.
How Much Does High Deductible Plan F Cost?
The high deductible plans may include a higher deductible fee at the outset, but their biggest selling point is the low monthly premiums compared with their standard Medigap counterparts.
There are a couple of conditions you need to understand before jumping into and enjoying the benefits of High Deductible Plan F. If you require support with one of the factors on the list above but haven’t met your deductible fee, you will be responsible for any and all payments until that figure is hit. In some cases, this can affect your eligibility for certain benefits: for example, if you haven’t met the high deductible figure and you require a blood transfusion, you will have to pay for the full cost of the first three pints of blood – because you haven’t met the conditions under which you are able to claim them through your supplement insurance.
In essence, a high deductible plan is the ideal solution for someone who expects to pay a lot for their ongoing healthcare and medical treatment. Even with the high deductible, it can still save them a lot of money in the long term.