Finding the right Medigap plan is a matter of comparison based on the benefits you need (and want), and what you can afford. In most cases, the main difference between plans of the same letter sold by different insurance companies is the cost. With an understanding of what’s available in your area and what is right for your lifestyle and budget, you can make the right decision. And this is particularly important when comparing high deductible Medicare Supplement plan options.
High-deductible plans cover 100% of the member’s costs once Part A and B deductibles and coinsurance have been paid. Medigap Plans F, G and J have high-deductible options and have a lot to offer shoppers whether coverage or cost is your primary concern.
A high-deductible plan can benefit generally healthy Medicare shoppers who don’t have expenses beyond physicals and screenings. You’ll have lower premiums because your number of doctor visits are limited to checkups. A high-deductible plan can also be combined with a health savings account (HSA).
High Deductible Medigap Plan F: ‘Cadillac of Medicare Supplement Plans’
Medigap Plan F has long been a popular alternative, particularly for those who wish to avoid out-of-pocket costs. It covers the Part A hospital and Part B outpatient deductible, as well as excess Part B costs. Plan F and high-deductible Plan F offer the same benefits, though full coverage for the high-deductible version does not begin until a deductible has been paid.
Sometimes called the “Cadillac of Medicare Supplement Plans” Plan F offers the most extensive list of benefits and is the choice of 46% of those enrolled in a Medigap/Medicare Supplement plan.* However, it’s also the most expensive of Medicare Supplement plans. And, as of Jan. 2020, Plan F is no longer available to anyone who enrolled in Medicare after 2020.
Though Plan F is no longer available for people who turned 65 on or after Jan. 1, 2020, it may still be possible to enroll in Plan F in your state and zip code if:
- You turned 65 before Jan. 1, 2020
- You are under 65 and enrolled in Medicare Part A before Jan. 1, 2020
High Deductible Medigap Plan G: Growing in Popularity
Medigap Plan G is a comprehensive plan similar to Plan F, though the Medicare Part B deductible is not included, and there are no plans to phase out Plan G.** There is also a high-deductible Plan G that provides full coverage once you’ve paid Part A and B deductibles and coinsurance. High-deductible Plan G offers lower premiums in exchange for higher out-of-pocket costs throughout the year. However, Plan G enrollees must sign up for a stand-alone Medicare Part D drug plan, and separately for dental coverage — this high-deductible Plan G covers:
- 100% of Medicare Part A coinsurance and copays
- 20% of Medicare Part B coinsurance and copays
- Medicare Part A deductible
- Medicare Part B excess charges
High Deductible Medigap Plan J
Plan J is the only other Medigap Plan with a high-deductible option. Though similar to Plan G, Plan J covers the Medicare Part B deductible. Plan J was discontinued as a result of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, however, those who purchased high-deductible Plan J prior to June 2010 can remain enrolled for as long as it is offered.
For more information about high-deductible Medigap Plan options, talk to a UMA Licensed Insurance Agent at (855) 665-9200.
*Medigap Plan F Is Gone, Now What? – Forbes, Secure Medicare Solutions, Jan. 9, 2020.
**Medicare Supplement Plan G. MedicareFAQ. 2023.
