Medigap Plan F is the most popular Medicare supplement in the nation and is the #1 seller with Baby Boomers. In fact, according to a 2012 report from America’s Health Insurance professionals, about 53% of the 10.2 million Medigap policies in force were a Plan F policy.
The reason Medicare Plan F is so well-liked is that it will pay for all of the gaps in Medicare for you, including both your hospital and outpatient deductible. It will also cover any copayments that you would have to pay if you didn’t have a supplement. Check out these great benefits:
Medicare Plan F provides comprehensive benefits
Medicare Plan F policies are considered first-dollar coverage. That’s because after Medicare pays it’s share of any covered expenses, the Medigap F pays the remainder. This leaves you with $0 out of pocket.
Your Part A and B are designed to cover only part of your hospital and outpatient expenses. The rest is left to you to pay if you don’t have a supplement.
Here’s an example: if you have no supplement, you would owe an $1,260 deductible when you go in the hospital. You would also pay 20% of expensive procedures like surgery. If you had a Medigap F policy, though, all of these would be paid for by your insurance.
Medicare Plan F pricing varies among carriers. Or agency will help you compare more than just rates. We’ll give you rate increase histories and financial ratings of the insurance carriers offering Plan F in your area. You might be surprised to learn that there are many solid insurance companies with good financial ratings that offer rates lower than the big brand-name carriers.
Medigap F example
Gracie applies for a Plan F Medigap and is approved. A few months later she sees an orthopedic specialist about problems with her knee. She learns that she is a candidate for a total knee replacement. She undergoes surgery at her local hospital, and is in the hospital a couple days. She also has a home health care nurse come out to her home several times in the weeks following her surgery.
The total cost for Gracie’s surgery, hospital stay and follow-up care is $70,000. Medicare pays its share of the bills and sends the remainder of about $14,000 to Gracie’s Plan F insurance carrier. The carrier pays the entire bill, and Gracie owes absolutely nothing except for a small copay for a generic pain medication under her Part D drug card.
Plan F vs. Plan G – which one is right for you?
When shopping for a supplement, ask your agent to help compare prices with other supplements that offer similar coverage. Quite often, we find that our clients can sometimes save $200 -$300 per year by looking at Plan G options. The coverage is very similar to Medicare supplement Plan F with one minor exception, and helps you to keep more of your money in your own pocket instead of an insurance company’s coffers.
We can demonstrate the savings for you – contact us today for help.
If you are following our Medicare learning track, you know have a good working knowledge about Medigap. Go next to: What Is Medicare Advantage? to continue learning all about your Medicare insurance options.