High-deductible Medigap plans are two extra plans offered only in some states with higher income rates. Medigap or Medicare Supplement plans are sold by private insurance companies and they help fill the gaps in payment of health care costs left by other parts of Medicare. On the federal level, Medigap has 10 standard plans that are named alphabetically (Plan A – Plan N), and as mentioned, there are 2 High-deductible options for those plans – High-deductible plan F and High-deductible Plan G.
While there is no denying that both of these High-Deductible plans are about offering lower premiums when it comes to higher deductibles, one of the significant differences between these two plans is that the High-Deductible Plan F provides coverage for the Medicare Part B deductible, in addition to its other benefits, whereas High-Deductible Plan G does not.
Also, Medicare Supplement Plan F and High-Deductible Plan F, as well as Plan C, are not accessible to those who were not eligible for Medicare before January 1, 2020. However, if you were eligible before the aforementioned date, then you can still enroll yourself.
Medicare Supplement plans vs. High-Deductible plans
The regular supplement plan counterparts also exist alongside the high-deductible plans: Medicare Supplement Plan F and Medicare Supplement Plan G.
Medicare Supplement insurance help in covering medical costs that Original Medicare doesn’t. This includes annual deductibles and coinsurance. However, when you use a high-deductible plan, with basic benefits you will have the additional benefit of a lower monthly premium than a supplement plan, but in return, you will have a higher deductible of about $2,700 for 2023.
High-Deductible Plan F
There are similar benefits and coverage offered when it comes to Medicare Supplement Plan F and High-Deductible Plan F. The benefits include Original Medicare Part A’s deductible in addition to Part A coinsurance and hospital payments. This can be used for another 365 days after having used all the benefits that Medicare offers.
Other than this, benefits include deductibles, excess charges, coinsurance, or copayments concerning Part B. It also includes coinsurance regarding a skilled nursing facility and not to mention the 80% coverage of a foreign travel emergency. It is important to note that this comes with certain plan limits. Lastly, it allows using the first three pints of blood for medical procedures, as is Medicare-approved.
You will be required to pay the premium every month, minus other external costs with Medicare Supplement Plan F. Also, you will have your medical coverage right away!
On the other hand, with the High-Deductible F, you will not receive the benefits until you have paid the high-deductible amount, i.e., $2,340. Upon payment, you shall receive similar benefits and coverage that the supplement plan offers.
High-Deductible Plan G
The benefits of High-Deductible Plan G resemble those of High-Deductible Plan F. The benefits encompass coverage for Original Medicare, as well as other costs, including coverage for the first three pints of blood used in a procedure and 80% of foreign travel emergency care.
However, keep in mind that while the benefits are the same, you will not receive coverage for the Part B deductible with a Medicare Supplement Plan G or a High-Deductible Plan G.
Difference
The only difference between Plan F and Plan G is that Plan G does not cover the Part B deductible. The Part B deductible is $226 in 2023. Seniors can still receive a substantial amount of savings if they choose Medigap Plan G. High Deductible Plan G will be a good option for those who do not need treatment frequently and have a fixed budget.
For all of your Medicare questions, please feel free to contact us at Temmen Insurance.