High Deductible Plan F is a rendition of standard Plan F where you consume the early costs.
Once you hit the deductible, the plan works just like regular Plan F. Individuals who have had high-deductible or health savings account plans in their workplaces are generally interested in this plan.
Medicare adjusts the deductible each year, so it rises a bit over time.
How High Deductible Plan F Works
First, Medicare pays its share. Then, you consent to pay the first $2,490 of your share (in 2022). That’s your maximum out-of-pocket on this plan.
For example, if you had a hospital stay earlier this year, Medicare Part A will cover that except for the Part A deductible ($1,556). Because you have a $2,490 deductible on your Medicare Supplement plan, you’ll pay the $1,556.
If you have other charges during the year, you’ll pay your share only until you’ve hit the $2,490 limit. After that, this plan will cover all of your share on all Part A and Part B services.
Medigap High Deductible Plan F Benefits
After you reach your annual deductible, your coverage is the exact same as Medigap Plan F. AFTER you pay the first $2,490, everything below is correct:
- Medicare Part A coinsurance and hospital costs (up to an additional 365 days after Medicare benefits are used)
- Medicare Part B copayment
- First 3 pints of blood
- Skilled nursing facility care coinsurance
- Part A hospice care copayment
- Part A deductible
- Part B deductible
- Part B excess charges
- Foreign travel emergency (up to plan limits)
Pros and Cons of High Deductible Plan F
A plan with a $2,490 deductible might seem unappealing at first. However, a high deductible comes with lower premiums, which intrigues people who have immense retirement savings. Typically, these folks can afford to spend some money out of pocket in a year of greater healthcare usage.
Ultimately, you’ll save a lot in monthly premiums than what you would’ve paid if you had enrolled in standard Medigap Plan F.
If you wish to dive further into these pros and cons, reach out to Cornerstone Senior Advisors. Our agents can guide you through potential spending and help you determine if this Medigap plan would truly be a good fit for you. Call (316) 260-3331 today.