High-deductible Medicare Supplement Insurance plans require you to pay for a certain amount of Medicare-covered costs on your own each year before the policy provides any coverage.
How Do High-Deductible Plans Affect Cost?
Currently, the only high-deductible Medigap plan is high-deductible Plan F. Although the high-deductible option is usually more affordable than the standard Plan F, it requires higher out-of-pocket costs. Other things to consider include:
- If you enroll in a high-deductible Medigap F plan, you must pay for Medicare-covered costs up to a certain annual deductible. For 2017, the annual deductible is $2,200. For example, if you need a blood transfusion, a traditional Medigap plan will cover the cost of the first three pints, and Medicare will cover the cost of pints four and beyond. But if you are enrolled in the high-deductible Medigap Plan F and have not met the yearly $2,200 deductible, you will be responsible for the full cost of the three pints of blood.
- Once you meet your deductible in out-of-pocket costs, the insurance company will begin paying the benefits offered in the plan.
Before you choose a high-deductible plan, consider how likely you are to use enough medical services over the course of the year to meet the deductible. Then evaluate how much coverage you would need after the deductible is met.
High-Deductible Plan F May Not Be Your Only Option
If you are looking for a Medigap plan that provides comprehensive coverage at a more affordable price than Medigap Plan F, you may have more options than just high-deductible plan F.
For more information about Medigap plans, including high-deductible Medigap Plan F, speak with a licensed agent today.