Medicare Plan F exited the market in part in 2020 the same way that Plan C. This leaves many people wondering what option they have to pay for medical costs that aren’t covered by the original Medicare. Many people are wondering how the high deductible plan G will stack up against other Medicare supplement plans 2024, especially the high deductible plan F. That is why in this article, I am going to discuss something about the High Deductible Plan G that you should know about before you make your decision.
How does a High Deductible Plan G work?
The High deductible plan G originates from Medicare Supplement Plan G as the parent plan. Therefore, if you need to understand how the former works, you are better off reading about the latter.
There is a lot to learn about this plan, but to make things easier to understand you should know that High deductible plan G covers all the costs that are left after the original Medicare pays its part of the bill. The only cost you have to pay is the Part B deductible. However, in order for you to start receiving the benefits of the plan, your plan must have been effective for at least one year.
What is happening to High Deductible Plan F?
When the MACRA act of 2015 was passed, Medigap policies as we knew them back then changed a lot. The MACRA legislation was enacted for the sole purpose of prohibiting Medigap policies from covering the Medicare Part B deductible. This deductible is also known as the first-dollar coverage. There is however something you need to understand about Plans C and F that starting from 1st January 2020, those who were eligible at that time wouldn’t access the two plans because they were made unavailable effective that date.
This doesn’t mean that Plan F is going away for good because those who were eligible and applied for the plan before 2020 will continue to receive the benefits it provides. Beneficiaries of Plan F will continue to enjoy the benefits it provides beyond the 2020 and will even be able to change insurance companies that offer the same plans if they like.
Is a High Deductible Plan G a good option?
Whether or not Plan F is good for you will depend on your own financial situation. This plan is often accompanied by a huge deductible that makes it not a good choice for many people. However, if your specific financial situation makes it the best option for you, then I don’t see why you shouldn’t go for it. This plan is most suitable for people who are conscious about their spending on healthcare, but who also know that going with the original Medicare plan leaves them exposed to a possibility of huge out-of-the-pocket expenses.
All you need to do in this situation is to sit down with a calculator and do your math. The tradeoff that high deductible plans is they have low premiums. That is a good thing if one doesn’t want to pay too much in premiums.
