Save Over $1,000 on your Medicare Supplement plan premiums with the Medicare Supplement High Deductible F Plan
Choosing a Medicare Supplement High Deductible F (HDF) plan is a cost effective way to have the best available benefits, after the $2,180 annual deductible is met. Only a handful of companies offer this Medigap plan design, and very few people ever hear about it. If you are in fairly good health, and don’t utilize a lot of medical services, this plan will likely save you thousands of dollars during your retirement years.
If you are just turning 65, then you are probably used to having a significant deductible on your health insurance. Most insurance plans through employers or the private and public marketplaces have $1,000 to $5,000 annual deductibles and you could be paying $800 to $1200 per month!
Becoming eligible for Medicare is going to be an enormous savings on your health care costs. Make sure you check out the United American High Deductible F. It’s one of the best Medicare Supplement deals on the market.
When you start looking at Medicare Supplements most people go straight for the regular Plan F because it has the highest level of coverage. In fact after the monthly premiums are paid, everything is covered at 100%! The average price for a Medigap plan F for a 65 year old ranges from about $150 to $250 per month depending on the area you live in, gender and if you are a tobacco user or not.
The chart below shows all the Medicare Supplement plans that Medicare has approved for sale. The benefits for each plan will be identical regardless of the company or where you live.
*Plan F also has an option called the High Deductible F. We usually recommend using United American for this plan design. This plan pays the same benefits as the F plan after the person has paid out $2,240 during the calendar year of 2018. This deductible is set by Medicare each year. The deductible includes all expenses that would normally be paid under plan F for Medicare Part A and B expenses. It does not include the separate Foreign Travel deductible.
Although all companies must offer the exact same benefits for each plan, the company can choose which plans to offer. Very few companies will offer every plan including plans A, B, C, D, F, HDF, G, K, L, M and N. Not all companies offer the High Deductible F plan. The high deductible F plan can be thought of as catastrophic coverage with a higher deductible, but much lower premiums.
People who use little medical care services are likely to be attracted to this plan design. If you are one who is fairly healthy, do not see a physician more than a few times per year, or never had a serious costly illness, you should consider this as an option. The money that you will save over the years in premiums can easily add up to over $1,000 to $2,000 per year and that savings will pay the deductible if and when you get enough medical care to add up to $2,200 for the year.
How Does the Medicare Supplement High Deductible F plan work?
You may be thinking that the deductible means that you pay the first $2,180 similarly to an employer group plan or an individual ACA (Affordable Healthcare Act) plan prior to getting Medicare. It works differently because Medicare will be primary and still it covers 80% of your out patient and physician expenses. All you have to pay is 20% of the bill. If you pay out $2,240 worth of 20%s over the year, which is very unlikely unless you are hospitalized or have costly outpatient therapy or tests, then all your Medicare approved health care is covered at 100%.
Below is an example of how this works.
- Dr. billed $250
- Medicare Allowed $150
- Medicare Covered 80% of the $150.00= $120
- You are responsible for 20% of the $150.00= $30
- You pay the $30 which goes towards meeting the $2,240 annual deductible
Your deductible is now at $2,210. Now lets say you have an MRI.
- Outpatient Imaging billed $800
- Medicare allowed $400
- Medicare covered 80% of the $400.00= $320
- You are responsible for the 20% of the $400.00= $80
- You pay the $80 which goes towards meeting the $2,240 annual deductible
The deductible is now at $2,310. Now the doctor says you need to be admitted to the hospital. Medicare Part A has a $1,288 hospital deductible. It will not matter if you stay 2 days or up to 60 days, the hospital portion of the bill will be $1,340.
- Hospital billed $10,000
- Medicare Allowed $6,000
- You are responsible for the Part A Deductible $1,340
- Medicare pays the balance of the Allowed amount
- You pay $1,340 which goes towards meeting the $2,240 annual deductible
Now you have met $1,450 of the annual deductible. You can see that it would probably take a significant amount of services and maybe a hospital stay to even hit the annual deductible.
The High Deductible F plan can also be a better option for people who are considering a Medicare Advantage plan that have a monthly premium. Some Medicare Advantage plans are charging $100 to $150 per month and you can be responsible for $5,000 to $10,000 for out of pocket expenses. The premiums for a 65 year old purchasing a HDF plan will be around $40 to $50 per month and you can get a drug plan to go with the Supplement for $20 to $30 per month.
In many cases the HDF is really better coverage all around. It’s still a Medicare Supplement, so you can always choose you own physicians and hospitals, go to a specialist without a referral, and leave the decisions about your healthcare up to you and your doctor. The out of pocket Maximum that you can spend is only $2,188 with a High Deductible F plan, and is typically two to four times more with a Medicare Advantage plan. Drug coverage whether it is including in a Advantage plan or purchased separately to go with a Medicare Supplement is has completely separate out of pocket expenses so don’t consider that in the total picture.
The HDF plan is financially a better option than a regular Medicare Supplement plan F and a Medicare Advantage. If the Advantage premiums are more than about $50 or$60 per month, and you would have copays for office visits and diagnostic testing, you should call talk to one of our independent agents about enrolling in a HDF Medicare Supplement Plan. Once you have it for a couple of years and see the financial savings, you’ll probably never change.
Contact our independent agents to find out more about how this plan can save you thousands over the years!