In this video, I’m going to share with you
five reasons why you may want to consider Medicare Supplement High Deductible Plan F.
Thanks for being here today. My name is Joann Quinn. I’m an Independent Insurance Agent here to
make Medigap and Medicare a little bit easier one video at a time. So, let’s just dive right into our topic. Now, High Deductible Plan F is a Medicare
Supplement plan. You’ll also hear me call it a Medigap plan. Remember, from my other videos that I just
use those terms interchangeably. But, they mean the exact same thing. So, High Deductible Plan F is not to be confused
with a regular Plan F. Regular Plan F is a Medicare Supplement plan just like a High
Deductible Plan F. But, if you’ve watched other videos or read other information, then
you know that the regular Medicare Supplement Plan F is known as the “Cadillac” of all plans,
because it covers your Medicare approved costs, and you don’t have any out of pocket for those
expenses. High Deductible Plan F, in contrast, does
have out of pocket expenses. That’s why it’s called High Deductible Plan
F. So, this is how it works. The deductible associated with that High Deductible
Plan F is not Medicare’s deductible. It’s, actually, the Plan’s deductible. So, Medicare will continue paying their portion
of costs which is generally that 80%, and you’ll pay the 20% co-insurance. That amount is applied towards the high deductible
amount, so once you’ve satisfied the full deductible (which at the time of this video
is $2,240) then you’re fully covered as if you had a regular Medicare Supplement Plan
F. So, for the rest of the calendar year, the Plan will pay the remaining coinsurance,
copays, and deductibles that are all approved by Medicare. And, the other item that is different between
a regular Plan F and High Deductible Plan F is, of course, the premium. You’ll find with the High Deductible Plan
F, in most states, you can get the plan for well under $100 a month. So, let’s look at the five reasons why you
may want to consider High Deductible Medigap Plan F. You’re considering a Medicare Advantage
Plan. One of the biggest reasons why people choose
a Medicare Advantage Plan is because of the very low premium. But, you can’t really compare Medicare Advantage
Plan and High Deductible Plan F benefits side by side, because they’re not apples to apples
in comparison. However, if you’re looking at a Medicare Advantage
Plan because of the low premium, then you may want to consider a High Deductible Plan
F simply because the out of pocket costs are much lower with a High Deductible Plan F than
they are with Medicare Advantage Plans. I think right now Medicare Advantage Plans
are ranging from (their maximum out of pocket costs) depending on the plan, of course, is
between $3,400 and $6,700. And, the other thing to keep in mind is that
with a Medicare Advantage Plan, you do have to see their network of doctors within that
service area, because it’s basically an HMO / PPO type plan. Where as with a High Deductible Plan F, it’s
a Medigap plan. It’s a Medicare Supplement Plan. So, you can go to any doctor who accepts Medicare
anywhere in the country and U.S. territories. So, you have more freedom with the High Deductible
Plan F. You’re considering Medicare Part A and B with no additional supplement coverage
because you’re healthy. And, maybe you’re thinking that paying a premium
for a Medicare Supplement plan is a waste of money because of your good health and you’ll
get a Medigap plan (Medicare Supplement Plan) when you need it. Well, unfortunately, our health isn’t guaranteed
and neither is a Medigap plan. In most states, outside of your Medigap Open
Enrollment Period, you do have to medically qualify for a Medicare Supplement Plan. So, it may not be a bad idea to consider a
High Deductible Plan F because it has a low premium, and it just gives you something to
have in place to protect you should something catastrophic happen. You don’t have a chronic health condition. I view High Deductible Plan F as a catastrophic
plan. There to mitigate your risk (as all insurance
is) if something major happens. So, if you have a chronic health condition,
you’re visiting a doctor frequently, you’re seeking treatment very often, then this plan
will have a lot of out of pocket coming to you. And, it may be uncomfortable. And, the bottom line is you may be spending
more on this plan (High Deductible Plan F) then you would with another Medigap plan if
you have a lot of out of pocket costs. Now, with that said, there’s another side
to it. And, that is you won’t avoid going to the
doctor in order to avoid paying towards the deductible. I totally understand. I have a high deductible insurance plan for
our family. I have a family member who has to be strongly
encouraged to go to the doctor, because he doesn’t want to pay towards the deductible. But, avoiding the doctor in order to avoid
the deductible isn’t a great idea. It defeats the purpose of having insurance. So, if this sounds like you, then you may
want to start looking at a different Medigap plan. You have the financial means to pay the high
deductible amount. I know that in the beginning we spoke about
the coinsurance. So, Medicare still pays the 80% and you have
the 20% coinsurance. And, 20% on your regular doctor visits is
not such a big deal. Those are small medical payments. But, we need to keep in mind that if you do
go into the hospital, you have surgery, something chronic arises and you need ongoing treatment,
that you’ll be susceptible to higher medical bills…that, of course, will go toward the
deductible. I think it’s important to have peace of mind
to know that you would be able to pay that deductible amount should something like that
arise where you did have some ongoing treatments or emergency. This is not a one time deductible. It’s an annual deductible. So, again, you want to be comfortable with
the fact that you have those funds to pay the deductible maybe more than once. Many of my conversations with potential clients
about High Deductible Plan F lead us into a conversation about changing plans. Many people are under the assumption that
down the road they can just change from a High Deductible Plan F to a Plan G or Plan
N with no issues if their health changes. And, this is something that’s really important
to pay attention to. In most states, you cannot change your Medigap
plan (including High Deductible Plan F) to a Plan G or a Plan N without medically qualifying. Unless you’re still in, of course, your Medigap
Open Enrollment Period or have some other type of special enrollment situation. But, for most people, outside of that Medigap
Open Enrollment period, you cannot change to a Plan G or Plan N without having to go
thru a medical qualification process with the insurance company. So, it’s not guaranteed. So, that’s something to keep in mind if you’re
thinking about changing plans down the road. That time period that everyone thinks about…the
Annual Enrollment Period with Medicare…between October 15 and December 7 every year, but
it is only for Medicare Part D and Medicare Advantage Plans. It is not for Medicare Supplement (also known
as Medigap) insurance. That type of insurance can be changed (your
Medicare Supplement) any time of the year. But, if you don’t have that Medigap Open Enrollment
Period, then you may have to go thru Medical underwriting. And, what about the future of High Deductible
Plan F? Well, if you have been doing any research,
then you know the regular Plan F is scheduled to be phased out, in a sense, in the year
2020. Meaning, no new Medicare Beneficiaries (starting
January 1, 2020) will be able to purchase a Medicare Supplement Plan F. The same is
true for High Deductible Plan F. If you have High Deductible Plan F, you’ll
get to keep it. You’re grandfathered in, and as long as you
make your premium payment, that plan is yours to keep. Now, whether or not we’ll see rate increases
on High Deductible Plan F after the year 2020 remains to be seen. Obviously, the mix of policyholders is going
to change and that could impact, of course, the premiums. But, the good news with High Deductible Plan
F is that the policyholder pays a large amount out of pocket before the plan has to start
picking up costs. And, that lends to favorable claim experiences
for the plan which would, hopefully, help keep those premiums at a very good rate. So, hopefully (knock on wood) time will tell
if the favorable claim experience will help keep those rates in a good position. Now, if you’re still here with me, but you’re
not quite sure that High Deductible Plan F is a good fit for you, let me know in the
comment section below. But, also, don’t worry. There are so many other Medigap plans to choose
from, and I have more videos about those plans. I’m sure there’s a link popping up around
here somewhere for you to click on for you to continue watching more videos and learning
about Medigap / Medicare Supplement insurance. And, don’t forget to subscribe to my channel,
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and share my video with anyone who can benefit from this information. Thanks for being here today, and I’ll see
you next time.