Medicare Supplement Plan F: Everything you need to know
Medicare Supplement Plan F
What is Medicare Supplement Plan F, which is also known as Medigap F?
Here’s a few insights into what makes Plan F unique.
Most Comprehensive
It is the most comprehensive Medicare supplement that exists today. It pays all the Medicare deductibles and co-insurance that Original Medicare does not cover.
Most Popular
As of 2017, which is the most recent year of information available, about 55% of people that have a Medicare supplement have a plan F.
The second most popular plan is at 13% so you can see it is significantly more popular than all other plans.
May NOT be the best value
Plan F is the most comprehensive and most popular plan. But that doesn’t mean it offers the greatest value for you when choosing your Medicare supplement plan.
Plan G is very similar to plan F with the only difference being who pays the Medicare Part B deductible. You or the insurance company.
In 2020, that deductible is $198 per year.
But a Plan F often charges more than $500 per year in premium than a plan F. So in that case, you are paying an insurance company $500 so that they can pay your $198 deductible for you. Obviously that doesn’t make a whole lot of financial sense when you stop to think about it.
I highly recommend you at least compare pricing between Plan F and Plan G to see which plan offers you the most value.
So why do people choose a Plan F?
Many people choose it because it’s popular and comprehensive. But also because it’s so EASY!
You pay your monthly premium and you don’t have to worry about paying anything else.
NO DEDUCTIBLE!
NO COPAY!
NO CO-INSURANCE!
The supplement pays all Medicare Part A and B deductibles, copays, and coinsurance for you.
You can see any doctor or hospital that accepts Medicare. Not just in your state but nationwide.
How does Plan F work?
Here’s an example about how Medicare supplement Plan F works in the real world.
Frank has Medicare and a Medicare supplement Plan F. His knee has been bothering him for quite some time now and his doctor recommended knee replacement. He’s going to have outpatient surgery, some doctor follow up appointments, as well as physical therapy. Who is going to pay those bills?
- Frank’s Medicare supplement Plan F is going to pay his Medicare Part B deductible
- Medicare is going to cover 80% of:
- Outpatient surgery
- Doctor appointments
- Physical therapy
- Frank’s Medicare supplement Plan F is going to pay the other 20% that Medicare didn’t cover
- Frank pays $0
That obviously offers a ton of peace of mind for Frank. So he can focus on his knee and getting better instead of wondering how he’s going to pay his medical bills.
Plan F is the same from every company
Medicare determines the coverage of Medicare supplements according to the plan letter.
What does that mean?
It means that a Plan F is mandated to cover the same bills, the same doctors, and the same hospitals no matter what company offers it.
But they can charge you very different prices for that exact same coverage.
So this is a situation where when you pay more, you are NOT getting more!
If you have had a Medicare supplement for more than a few years, it’s a great idea to compare your options to see how much you can save. And since Medicare requires the coverage to be the same, you don’t have to worry about the new company paying the bills for you.
Can I still buy a Medicare supplement plan F?
It depends.
MACRA was passed in 2015 which prevents people who first become eligible for Medicare from buying a Medicare supplement plan F. So if you were first eligible for Medicare before 2020, you can still buy a Plan F today.
If you are not eligible to buy a Plan F then a Plan G is the most comprehensive Medicare supplement plan you can buy.
An annual review of Medicare Supplement Plan F prices can save you lots of money over the years.
If you’d like an easy way to compare rates please complete the form below or call me at 855-712-7316.