High Deductible Plan F

High-deductible Plan F offers all the same coverage as the original Plan F, but with little to no monthly premiums. Instead, you will pay a much higher yearly fee.

Why High-Deductible Plans Work

With a traditional supplement Plan F, your coverage would look something like this:

  • Purchase the plan
  • Pay your monthly premium set by the insurance company
  • Pay your deductible once per year when you use a benefit under the plan

This is a very easy process to follow. And, thankfully, you do the exact same process with a high-deductible Plan F as well. The only difference? Your premium will be significantly less.

Relatively, the overall price ends up about the same for both types of plans. The difference, then, is when you pay. You are obligated to pay your premium no matter what, and you only pay your deductible when you use a service under the plan.

The Pros and Cons of High-Deductible Plan F

There are quite a few benefits to a high-deductible plan F as opposed to the regular Plan F. First of all, they still cover all of the same benefits, including:

  • Part A Coinsurance & Hospital Costs
  • Part B Coinsurance/Copayment
  • First 3 Pints of Blood for Transfusions
  • Part A Hospice Care Coinsurance/Copayment
  • Skilled Nursing Care Facility Coinsurance
  • Part A Deductible
  • Part B Deductible
  • Part B Excess Charges
  • 80% of Foreign Travel Emergency Care

There are no differences between the two, then, besides how you pay. And what are the benefits of a high deductible? First of all, you have a lower monthly payment. These costs even out with the higher deductible, but having a lower cost on a month-to-month basis can be extremely beneficial to many individuals.

Secondly, a lower premium may mean a better rating, or a less substantial change for the rating. A rating is the way in which the insurance company determines your premium over time. There are 3 different methods of doing so—community, issue-age, and attained-age rating.

While the first 2 systems stay the same, attained-age changes gradually over time. Each year, your premium with this rating increases. This, of course, is not ideal for most people. With a high-deductible plan, this change bears a much smaller impact than your traditional Plan F.

The only con, then, is that you will have to pay a lot all at once. If you would rather make these payments over a longer period of time, a high-deductible plan may not be the best option for you.

How High-Deductible Plan F Stacks Up to the Competition

The question is, then, which is better? That ultimately depends on your preferences. High-deductible plans can often reduce your overall out-of-pocket costs—so, if you plan on using a lot of the Plan F benefits, you may do better with a high-deductible plan. On the other hand, a traditional Plan F may simply be preferable to you.

Integral Medicare Insight You Can Trust—Call Schwenker Senior Insurance

Schwenker Senior Insurance wants to help you navigate your many excellent Medicare options. From high-deductible supplements to your initial Medicare enrollment, we have the expertise you’ve been searching for. To get started, call 563-579-6116, or email jon@schwenkerins.com.

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