How Does This Plan Work?
All Medigap policies supplement your Original Medicare coverage, so Medicare will pay its share (80%), and you’ll pay yours — in this case, you’ll pay up to the annual deductible.
After Medicare pays its share, you agree to pay the first amount of your share ($2,370 in 2021). That’s your out-of-pocket limit with High Deductible plan F.
From there on, your plan will pay 100% of your share on all services for Parts A and B.
High Deductible Plan F Benefits
After you pay the first $2,370, your coverage is the same as regular Plan F:
- Medicare Part A coinsurance and hospital expenses
- Medicare Part B coinsurance
- Part A hospice care coinsurance
- Part A deductible
- Part B deductible
- Part B excess charges
- Skilled nursing facility coinsurance
- Foreign travel emergency care
What Else You Should Know
Medicare changes the deductible each year, so it increases a little bit over time. When you choose a High Deductible Plan F, you’ll pay lower premiums — which often interests people who have a lot in retirement savings. So if they have a year where they use more healthcare, they can typically afford to spend some money out of pocket.
The lower monthly premiums will allow you to save money if you choose High Deductible Plan F over a standard Plan F.
The pricing for this high deductible plan varies from company to company, and not all insurers offer it. Carolina Senior Benefits can help you compare rates and tell you if this particular plan would be a good fit for your needs.
When to Enroll
It’s best to enroll during Medigap Initial Enrollment — a six-month period that begins when you turn 65 and enroll in Medicare Part B. If you don’t sign up during this time, you may not be able to get the Medigap plan you want or it might cost more.
How the Companies Charge You
Each Medigap plan charges a monthly premium. The exact amount may vary by area, gender, and tobacco status. Insurance carriers can set monthly premiums for their policies in three ways:
- Community rated — Everybody who buys the plan pays the same monthly amount no matter their age.
- Issue-age rated — Monthly premiums are based on the age when you first buy a plan. Younger buyers will have lower premiums, and the premiums don’t go up as you get older.
- Attained-age rated — Monthly premiums are based on your CURRENT age. So, your premium will increase as you get older.