Plan F Medicare supplement insurance policies are the most comprehensive Medigap plans available for purchase today. They cover all gaps in Medicare and have no out-of-pocket costs for Medicare-approved expenses.
With Plan F, there are no deductibles, coinsurance, or copays to meet. So long as your expenses are Medicare-approved, Plan F will cover the remainder. There are no lifetime limits or maximums – and coverage cannot be cancelled so long as you pay your premiums.
(It’s important to note that no Medicare supplements sold today cover prescription drug costs. To cover these expenses, a private Part D prescription drug plan must be purchased.)
Plan F Medicare Supplement Benefits
When viewing a Medicare supplement benefit chart, you will see that Plan F covers all of the gaps in Medicare Parts A & B. This is why agents sometimes refer to Plan F as the “Cadillac Plan.” It’s the most comprehensive available, but it will no longer be offered to those who are new to Medicare beginning in 2020. More on that later.
When comparing Plan F Medicare supplement insurance quotes, you are shopping on price, rate increase history, and the reputation of the insurance carrier. It can be a good idea to shop with an independent agency (like ours) so you can learn more about yearly premium increases from the various companies.
Understanding Medicare Part A & Part B Deductibles
Plan F fully covers both Part A and Part B deductible amounts as well as Part B coinsurance at a 100% level. Most Medicare supplements cover the Part A deductible, but only two (Plan C & F) cover the smaller Part B deductible.
While the Part B deductible might be of little concern to some, many consumers want a hassle-free plan with no out-of-pocket exposure to worry about. That policy is Plan F. If you are unbothered by the small Part B deductible, then Plan G can be a good choice. The lower premiums with Plan G usually make up for the deductible and Plan G premiums tend to increase more slowly.
Plan F No Longer Available For Some In 2020
As mandated by CMS (Center for Medicare and Medicaid Services), Plan F will no longer be offered to those whose Medicare eligibility begins after January 1, 2020. Those who were eligible for Medicare before 2020 will be able to keep their F plans and even shop for new ones. However, those who are eligible for Medicare after 2020 will not be able to purchase a Plan F.
The Medicare Access and CHIP Reauthorization Act of 2016 was passed to reduce Medicare costs and increase cost-sharing. The law states that beginning in 2020, no plans sold to new Medigap members can cover the Part B deductible. That eliminates Plan F and Plan C as well as High Deductible Plan F.
This is not the first time Medicare has changed or withdrawn a supplement from the market. Plan J (the most comprehensive at the time) and a handful of others were decommissioned in 2010. With no new enrollments allowed, some carriers did experience above-average rate increases on their existing pool of policyholders.
And as we have seen, limiting eligibility tends to drive up prices on Medicare supplement policies. That’s why many of our clients now gravitate toward Medigap Plans G and N.
Coverage For Medicare Part B Excess Charges
Not all states allow doctors to charge Part B excess fees. If your home state – or one that you visit often does – then it can be wise to purchase a plan that covers this benefit. Plans F and G are the only two Medicare supplements sold today covering Part B Excess charges.
If you did face a Part B excess charge (up to 15%) on a significant medical claim and you did not have Plans F or G, you could encounter a large medical bill. While these charges are very rare, it is something to be mindful of in the long run. If your resident state does not allow for Part B Excess Charges (like Ohio for instance), you might consider other plans like C, D, and N.
High Deductible Plan F Medicare Supplement Insurance
Plan F is unique in that it is the only Medicare supplement sold today that offers a variation with a deductible. High Deductible Plan F is popular as the premiums are usually very low when compared to most other supplements sold today.
With HD Plan F, your benefits will not begin until a predetermined deductible has been reached. Currently, the deductible for HD Plan F is $2,950. This does not mean that Medicare does not still pay its part first – it does. It simply means that your supplemental benefits don’t begin until you first meet the deductible.
This is a yearly deductible and Medicare officials usually increase this amount each year based on inflation. Any mandated increases will affect all High Deductible Plan F policies – both old and new.
Medicare Select Supplemental Insurance Plans
No matter the chosen insurance carrier, almost all supplemental insurance plans have no network restrictions. As long as your doctors and/or hospitals accept Medicare patients, then they will also accept any supplement you purchase from any company. There are a couple of exceptions, however.
There are two supplemental insurance policies (Plan C & F) sold today that offer “Select Plans” in some areas of the country. Select Plans will only cover non-emergency benefits if you stay in their designated network. The network may not include all of the doctors and hospitals you might want to use. Thus, it’s important to understand any limitations of a network-driven Select Plan before purchase.
Most Select Plans will pay for emergency care outside of the network with no restrictions, however. In our experience, Select Plans C & F are rarely purchased, but they can be beneficial for those in need of lower premiums. Or for those who haev Guaranteed Medicare rights because they are losing other coverage, like a Medicare Advantage plan for instance.
Request Quotes & Information
There are several competing insurance companies offering Medicare supplement insurance in every state. This is a well-regulated insurance product and almost all companies pay claims in an orderly and efficient manner.
Our independent agency can help take the guesswork out of shopping for Plan F and any other supplement plan. We will show you the direct rates with dozens of carriers side by side and walk you through the value each has to offer.