High Deductible Medicare Supplement Plan F – Don’t Buy It!

Published: 23rd May 2010
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Finding the perfect Medicare Supplement Plan has never been easy, especially considering the many changes that have been made to the Medicare programs over the past 10 years. There was the introduction of Medicare Advantage Plans that created an entirely new insurance option, and now the restructuring of Medicare Supplement Plans, which has created additional plans available for purchase. Several plans, including High Deductible Plan F, that may have been attractive ten years ago should not even be considered today.

Medicare Supplement Plan F is the most popular option because it provides the most benefits. People who purchase this plan rarely have any out of pocket expenses as all deductible and copayments are paid for by the insurance company. In addition, this type of plan has no networks, which means people who purchase this plan can visit any doctor or hospital that accepts original Medicare.

The high deductible version of this plan is much less exciting.
High Deductible Medicare Supplement Plan F has a $2000 annual deductible that must be met before the insurance company begins to pay the 20% coinsurance for medical and hospital services. However, if you just had original Medicare, the deductible for the hospital is only $1100 and the deductible for doctors and medical services is only $155. After the original Medicare deductibles have been met you will only pay the 20% that Medicare does not pay. This means if you purchase this high deductible Plan you would need to spend $5600 at the hospital before your insurance company pays a dime!

The only reason to ever purchase High Deductible Medicare Supplement Plans F would be for catastrophic coverage. If you fell very ill and needed intensive medical care over a long period of time this plan would limit your financial burden. However, you can likely get a Medicare Advantage Plan for FREE that has a maximum out of pocket cost that will be less than $5600 and this type of plan will provide better coverage in the near term because there will be no deductibles, only co-payments. In addition, many Medicare Advantage Plans have a prescription drug benefit as well.

With Medicare Advantage plans as an option, purchasing a High Deductible Medicare Supplement Plans F is not a good idea for most people, especially considering these plans normally cost between $40 and $60 per month. Most experts consider these plans a waste of money and would recommend people stick with only original Medicare or purchase a Medicare Advantage plan instead.

Another new option for people who are on a budget is Medicare Supplement Plan N, which is one of the cheapest plans, but only has an annual $155 deductible. The coverage is much better than high deductible Medicare Supplement Plans F, and it is only slightly more expensive. Medicare Supplement Plan N will be available June 1st, 2010 and will be offered by several well-known companies.
While many insurance agents push high deductibleMedicare Supplement Plan Fbecause it is cheap on a monthly basis, most people realize after taking a close look at the benefits compared to other plans there are better options available. You should consult a national insurance broker who specializes in this type of insurance and can give you quotes and guidance regarding new and better options.

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