Medicare Supplement Plan F has been the highest coverage plan available to Medicare beneficiaries over the last few years. This plan has always been so attractive because it offered full coverage for very little out-of-pocket. With that full coverage, however, often came a very high premium. What many people don’t know is that there is another version of Plan F with a much lower premium that makes a lot of sense in many states. This plan is known as Plan F High Deductible. In order to be eligible for either of these two plans, you must have turned 65 and been Medicare eligible January 1st, 2020.
As the name states, this version of Plan F offers the same benefits of a standard plan, but also includes a high deductible. Essentially with this plan, you are required to meet the deductible with out-of-pocket costs, and once the deductible is met, your Plan FHD turns into a standard Plan F.
For the majority of people coming off of either an employer-sponsored health plan, or an individual plan, you will find that this deductible is actually not as high as it sounds! In 2021, Plan FHD carries an annual deductible of $2,370. It is important to understand exactly how this deductible works, and when it comes into play.
What is a Medicare Supplement Plan?
When you first enroll into Medicare, whether at at 65 or after you retire, you initially enroll into Original Medicare, which consists of Medicare Part A and Medicare Part B. Although Medicare is great health insurance, it does NOT cover everything related to your health expenses.
Original Medicare carries out-of-pocket expenses such as deductibles, coinsurances, copayments, and excess charges. Some of these expenses, such as copayments and coinsurance, do not have a maximum out-of-pocket amount under Original Medicare.
Luckily, Medicare beneficiaries are given the option to enroll in supplemental coverage in order to not only cap these costs, but add some additional benefits to Original Medicare, such as foreign travel emergency coverage.
What is Medicare Supplement Plan FHD?
One of the Medicare Supplement plan options available to Medicare beneficiaries is Medigap Plan F High Deductible. This plan offers all of the benefits of a standard Medigap Plan F, but with a much lower premium and a high deductible. To be eligible for this plan, you must have turned 65 prior to January 1st, 2020. If you were not 65 prior to this date, you are eligible for a Plan G High Deductible.
With a Plan FHD, you are first enrolled in Original Medicare Part A and Medicare Part B. Original Medicare coverage out-of-pocket includes:
- Part A Deductible- $1,484 per benefit period
- Part B Deductible- $203 annually
- 20% Medicare Part B coinsurance
- Medicare Part B copayments
- Medicare Part B excess charges
The standard Medicare Supplement Plan F covers the majority of Original Medicare out-of-pocket expenses, including the Part B annual deductible.
A Medicare Supplement Plan F High Deductible covers all of the same benefits of Plan F, with one catch. Prior to Plan FHD coverage picking up any expenses, you must first meet the high deductible. In 2021, the Plan FHD deductible is $2,370 annually. Essentially, prior to your plan transforming into a standard Plan F, you must meet your annual $2,370 deductible.
Before you meet the high deductible, any costs you incur under Original Medicare will go toward the high deductible. This includes the Part A deductible and the Medicare Part B 20% coinsurance.
What Does Plan FHD Cost?
As mentioned previously, Plan FHD is often a much lower premium that a standard Plan F premium. This drastic difference in premium, of course, is a direct result of the high deductible. Often times, however, you may not come close to hitting the deductible in a year, unless you have a catastrophic year. For this reason, Plan FHD is often a very cost-efficient plan to save money in premium throughout the year, which can be set aside for the $2,370 deductible, if needed.
What Does Plan FHD Not Cover?
Just like all other Medicare Supplement plans, Plan FHD will not cover any services or expenses not covered by Original Medicare, whether you have paid the deductible or not. A Medicare Supplement is always going to follow Original Medicare’s lead on whether services qualify as either medically-necessary or preventive.
Essentially, Plan FHD does not cover things such as routine dental, vision, and hearing, or prescription drugs. Luckily, there are separate stand-alone plans that offer coverage for these services.
Give us a call at 877-88KEITH (53484), an experience agent will be able to review these additional plan options with you.
How To Enroll in Plan FHD
Now that you have researched all of the Medicare Supplement plan options available, you have decided that Plan FHD is the right choice for you. Luckily, with help from the right agent, enrolling into the plan is the easiest part! You just need to make sure you follow the right steps!
Enroll in Original Medicare
Before you can enroll into a Medicare Supplement plan, you must first set-up your enrollment into Original Medicare Parts A and B. Original Medicare can either begin when you turn 65, or when you are leaving employer coverage past age 65. Medicare eligible beneficiaries must enroll in Original Medicare themselves, as it is completed through Social Security. We at Medicare On Video have created a quick link to take you to exactly where you need to apply on the Social Security website- www.StartPartB.com
Enroll in Plan FHD
Once you have determined when your Original Medicare is going to begin, you are eligible to submit an application for a Medicare Supplement plan. You can apply for a Medigap plan up to 6 months prior to your Medicare Part B effective date. It is imperative to have your Medicare Supplement begin the same month as Medicare Part B to avoid any gaps in coverage. Give us a call at 877-88KEITH (53484) for a free Medicare Supplement FHD quote and we will walk you through all of your options available, as well as help you set up your enrollment!
