High Deductible Plan F Medicare Supplement Insurance Rates
High deductible Plan F Medicare supplement insurance is a good choice for those who desire lower monthly premiums. Insurance companies are not required to offer HD Plan F, so consumers won’t have quite as many choices when it comes to providers.
Conversely, traditional supplemental Plan F is offered by all providers and can be a better choice for those who do not wish to meet a deductible each year. Monthly premiums will be higher for these traditional plans.
How Does High Deductible Plan F Work?
The plan itself is fairly straightforward and works like all other Medicare supplemental insurance coverages. The only difference is there is a one-time deductible that must be met each year before the Medigap insurance company will begin paying benefits.
In 2013, the amount that must be met for high deductible Plan F is $2,110. The amount in 2012 was $2,070 per year and in 2010 & 2011 it was $2000. As you can see, the deductible can increase year over year, but it is determined by the Centers for Medicare and Medicaid Services – not the insurance companies.
While it is very unlikely that the deductible would increase to $5,000 for example, it is possible that the amount could increase by a few hundred dollars over the next few years. Currently, there are no other Medigap policy offering a high deductible option other than Plan F.
Disadvantages of a High Deductible Plan F
One disadvantage will be if the insured decided later on that he or she did not want a high deductible Plan F supplement. Often when the insured does not like less comprehensive coverage, it is because they are paying more out of pocket than they had originally anticipated.
Someone who was once in good health, but later finds that the $2,000 + deductible must be met each year as his or her health has changed might not like the coverage any longer. The issue then would be that it can be difficult to change plans if the insured is in poor health. Medicare beneficiaries cannot change coverage without undergoing medical underwriting with most providers in most states.
Thus, if the high deductible Plan F is chosen, it may be hard to switch to something more comprehensive later on. Contrary to popular belief, there is not an open enrollment period each year when Medicare supplement owners can switch to any new plan they want.
Medicare Annual Election Periods and Underwriting
The time period from October to December each year (collectively known as the Annual Election Period or AEP) is for changing Part D plans and/or Medicare Advantage coverage, but it does not allow the insured to choose any new supplement without undergoing medical underwriting.
The insured cannot increase his or her coverage during their yearly anniversary without undergoing medical underwriting. That is to say that, the insured cannot switch from a high deductible to traditional Plan F (or most other plans for that matter) without first answering several health history questions.
Who Might Purchase A High Deductible F Medigap Plan?
Typically those who purchase a High Deductible Plan F fit into a couple of categories. Generally speaking, they are in good health, have enough savings to cover the deductible year over year, and do not like the hassle associated with network driven coverage, like Medicare Advantage plans.
The primary advantage to the high deductible Plan F is lower monthly premiums. Many consumers do not worry about potentially paying a $2,000 + deductible each year as they are often times leaving group health insurance plans with similar or higher deductibles.
Additionally, Medicare supplements do not have network restrictions like most other types of health insurance or Medicare Advantage plans. The insured is still free to choose any doctor or hospital accepting Medicare and does not need to worry about higher costs associated with referrals to an out-of-network physician or facility.
Seniors who travel often or who have a residence in more than one state will likely choose a traditional Medigap plan like High Deductible F knowing that they can receive routine care both in and out of their primary resident state.
Request Medigap Quotes (Medicare Supplemental Insurance quotes) and Information or call Neil Primack at: 561-935-3907