A High-Deductible Plan F is, for all intents and purposes, like a Plan F – except the senior has to cover an annual deductible of $2,300 before the plan starts to pay for care. After the senior pays the $2,300 deductible, then this plan acts like a regular Plan F and covers the rest of the senior’s Part B expenses, while hospitalization (Part A) is still covered the same.
What does a high-deductible plan F cover?
After you pay the annual deductible of $2,300 (in 2019), a High-Deductible Plan F covers all your Part B expenses that Medicare doesn’t cover – including the Part B deductible, any excess charges, and foreign travel emergency benefits.
Also like a normal Plan F, a High-Deductible Plan F also covers the Part A deductible and skilled nursing facility coinsurance – which isn’t the same thing as long-term care or custodial care. Medicare Supplement plans don’t cover long-term care expenses – for that, you need long-term care insurance, or an annuity or life insurance policy with long-term care benefits.
How much does a high-deductible plan F cost?
The cost of a High-Deductible Medicare Supplement Plan F starts around $50 per month for a 65-year-old. A 70-year-old can expect to pay at least $70 per month. An 80-year-old can expect to pay $100 or more per month, and a 90-year-old will pay around $120 per month or more. Seniors who pay annually can get a discount. If you are applying together with a domestic partner or spouse, you can possibly get a Household Discount – ask your broker for more details.
How does a high-deductible plan F compare to a typical plan F?
If you were to compare the cost of a High-Deductible Plan F with a normal Plan F, you’d find yourself paying two or three times more in monthly premium for a normal Plan F. For example, a Plan F might cost a 65-year-old about $140 or more per month, whereas the same senior might only pay $50 in monthly premium for a High-Deductible Plan F. This is a difference of around $90 a month, which amounts to almost $1,100 in annual savings with the High-Deductible Plan F.
Of course, seniors on a High-Deductible Plan F are also responsible for paying the $2,300 annual deductible. For that reason, this plan is most popular with “the healthy and the wealthy” who can afford to pay the $2,300 deductible each year if they needed to. If they’re healthy enough that they don’t visit the doctor enough in a year to even reach the full deductible, then they can actually come out ahead with a High-Deductible Plan, by saving on a much lower monthly premium.
How does high-deductible plan F compare to plan N?
Seniors comparing a High-Deductible Plan F with a Plan N are usually of the ‘saver’ mindset and looking for the best value for their premium dollar. With a High-Deductible Plan F, you only have to worry about the $2,300 annual deductible. Seniors on a Plan N, however, have to pay the annual Part B deductible of $185 (in 2019), a $20 copay for doctor’s visits, a $50 copay for ER visits, and any Part B balance-billing (or “excess charges,” which are forbidden in Ohio).
A 65-year-old can expect to pay around $90 a month in premium for a Plan N – compared to $50 per month for a High-Deductible Plan F, or $130 or more per month for a normal Plan F. That’s $40 a month or almost $500 a year in savings when choosing Plan N over Plan F – whereas you’d be saving $80 a month or almost $1,000 a year if you chose a High-Deductible Plan F over a normal Plan F, but then you’d also take on 5-8x higher out-of-pocket risk (depending how many times you typically visit the doctor in a year). If you compare the differences, you might be better off with a Plan N, where you can pocket some savings and not have to worry about a monstrous $2,300 deductible.
