Medicare Supplement Plan F
Signing up for Medicare and a Medicare Supplement (Medigap) when you retire is inevitable, though absolutely necessary. There are health issues that crop up as we age and we simply cannot let these get in the way of enjoying one’s twilight years. Majority of retirees dip into their personal savings or investment earnings accumulated through the years to engage in leisurely pursuits, travel, shop or anything else that would involve fun and wellness—and rightly so. Medical checkups, routine care, and illness should not be part of this picture.
The creation of Medicare, Medigap, and Medicare Advantage plans give seniors an opportunity to live life to the fullest without being hampered by medical expenses. While the aging process does come with a range of health issues, these insurance programs give individuals a chance to deal gracefully. And with the right combination of insurance policies, it is possible to have minimum to zero billing when the needs arise.
Among the ten Medicare Supplement plans created by the federal government, Plan F offers the most comprehensive suite of benefits—though there are some caveats for 2019 onward.
Before Choosing a Medicare Supplement Plan
If you have decided that you want a Medicare Supplement policy over a Medicare Advantage plan, there are a few things you need to clear up prior to purchasing. Foremost is that Medicare Supplements are sold through private insurance agencies.
The standard benefits of Medigap policies are the same across the board, as these are directed by the federal government. However, they might differ in terms of the price of monthly premiums and other add-ons as the provider sees fit. In addition, not all insurance agencies offer the whole 10 Medigap plans. They are allowed to be selective with their offerings. Thus, scout around and compare providers and plans first before signing up. Other things you need to know before buying are as follows:
– You need to be enrolled in both Medicare Part A (hospital insurance) and Part B (medical insurance).
– A Medigap policy covers only one person. Spouses will have to purchase separate plans.
– You will be paying a monthly premium for your chosen Medigap plan, in addition to what you are paying for your Part B coverage.
– During your Open Enrollment period, you can purchase any Medigap policy of your choice from any insurance provider in your state—and without being subjected to medical underwriting.
– Any standardized Medigap plan is guaranteed renewable. This means that even if you have health problems, your insurance provider cannot cancel your policy as long as you are enrolled and continue paying the premium.
Plan F Medicare Supplement Benefits: Plan F and High-Deductible Plan F
Plan F Medicare Supplement is usually called “the Cadillac of Medigap” because it is the most comprehensive. It is available in two versions: the standard Plan F and the High-Deductible Plan F (HDF). With an HDF, you must pay an annual deductible of $2,300 (2019) before the policy pays anything for medical benefits. The benefits of a Plan F Medicare Supplement are as follows:
– Part A coinsurance and hospital expenses (up to 365 days after Medicare benefits are used up)
– Part B copayment or coinsurance
– First 3 pints of Blood
– Part A hospice care copayment or coinsurance
– Skilled nursing facility care coinsurance
– Part A deductible ($1,364 in 2019)
– Part B excess charges*
– Foreign travel emergency expenses (80%)
*Excess charges refer to the amount that doctor or clinic is allowed to charge beyond the Medicare-approved amount for services.
Changes to Plan F Medigap In 2019
Changes are coming to Medigap starting the year 2020, as per the Medicare Access and CHIP Reauthorization Act of 2015 (MACRA) — and Plan F is part of it.
Beginning January 1, 2020, Medigap plans that cover the Part B deductible benefit will no longer be made available to new members. In 2018, the benefit is $185, which is the amount members need to pay out-of-pocket before Part B pays for the services it covers.
To illustrate the Plan F changes, here are some scenarios:
– If you already have a Plan F policy, you may continue to keep and use it.
– If you were eligible for Medicare before January 1, 2020, you can still buy a Plan F policy.
However, if you become eligible for Medicare on or after January 1, 2020, then Plan F will no longer be offered and sold to you. The same goes for Plan C, which also has the same benefit. If you are affected by this change, you are advised to apply for a Plan G policy, instead, because they offer the same benefits.
If you live in Minnesota, Massachusetts, or Wisconsin, you may get in touch with your local health insurance assistance unit or talk to our qualified Medigap advisors for their plans’ details. These three states have their own sets of standardized Medicare Supplement programs that are slightly different from the ones available in the other areas.
If you are concerned about your Plan F policy because of the planned changes, especially in terms of potential increases in the premium fees, you’ll be glad to know that you can switch to another policy, with some caveats. There are certain states that allow members to change their Medigap plans, such as California and New York. It’s best to talk to your insurance provider about your options.
In states where this opportunity is not available, you may apply for a Plan G policy instead. However, you run the risk of getting a denied if you have an existing health condition or be charged a higher premium.
We Can Help
To better understand what options are available to you, we recommend talking to our licensed Medigap professionals who can provide unbiased advice according to your past, present and projected health status and finances. We can also provide a comprehensive quote from different insurance companies so you can compare benefits and rates from just one page.
