The most comprehensive Medicare Supplement plan is Plan F. With Plan F virtually all of your out-of-pocket
medical expenses are covered. It’s often called the “Cadillac plan.” But, like a Cadillac, Plan F isn’t cheap. As you
might imagine, Medigap Plan F is the most expensive Medigap plan. On the other end of the premium spectrum is
the high deductible version of Plan F. High Deductible Plan F has the lowest monthly premiums of all Medicare Supplement plans. But is it a good insurance plan?
What is Medicare Supplement High Deductible Plan F?
High Deductible Plan F offers identical coverage to Plan F with one caveat: you’ll need to reach the plan deductible before coverage begins. In 2018 the deductible for High Deductible Plan F is $2,240. This means after you’ve spent $2,240 on medical expenses the plan will cover all of your out-of-pocket expenses for the remainder of the year.
Something to keep in mind: Original Medicare will continue to cover 80% of your medical expenses as you are reaching your plan deductible.
Is High Deductible Plan F Right for You?
The savings on premium with High Deductible Plan F can be significant. As an example, a ballpark monthly premium estimate for someone on Plan F in California might be $150. That same person could probably find a High Deductible Plan F with a $30 monthly premium. That’s a $1,440 annual savings on premium.
Of course, if you’re spending $2,240 on medical expenses as you reach your deductible, a $1,440 savings on premium is really not saving you any money at all.
So one of the most important factors in deciding if High Deductible Plan F is right for you is evaluating your personal health. If you’re in good health and don’t have too many medical expenses, High Deductible Plan F can be a great choice. You’ll save significantly on your plan premium payments while still having insurance protection against major medical expenses.
On the other hand, if you’re likely to spend more than the deductible on medical expenses, Plan F or Plan G might make more sense.
Ultimately, we usually recommend High Deductible Plan F to clients in good health who have enough money in savings to pay the plan deductible if necessary in any given year.
For help in figuring out which Medigap plan is right for you, give us a call and one of our consultants will be happy to help.
See my screen