Medicare Plan F High-Deductible. Just how does that deductible work?

[Telly]

Here's my estimate of individual savings for DW and I since we enrolled in Medicare Supplement F-HD:

Average annual Plan F premium ~ $2,000
Average annual Plan F-HD premium ~ $700
Average annual premium savings = $1,300

We are both relatively healthy (thankfully) and what we have paid for medical care out of pocket has averaged less than $150 per person per year. So our savings for having plan F-HD has been approximately $1,150 ($1,300 - $150) annually for each of us.

REW, do you have any concerns about the future, if/when you or DW's health declines, that you may not be able to switch to a regular Plan F, or G, etc. due to medical underwriting?

Or are you thinking that come what may, riding Plan F H-D all the way to the final round-up will work for you? I'm not trying to change your mind or anything, I would like to tap your thoughts on this. I have yet to spread-sheet it all out, with a few different letter plans, and a multitude of scenarios with increasing medical cost years, like increasing in big chunks. Of course, premiums would be in the mix.

 

[NoMoreJob]

While we're talking about Medigap plans... The book on Medicare that I referenced above, mentions a change coming to Plan F (the regular Plan F, not the H-D version) in 2020.

The author states that a term in the Medicare Access and CHIP Reauthorization Act of 2015 (MACRA), C and F plans sold to newly eligible Medicare beneficiaries will not cover the Part B deductible beginning in 2020. Those who already have it will be allowed to keep it and renew it each year. The author points out that this restriction may cause large numbers of Medicare newcomers to not buy these now-popular plans, so premiums may rise for remaining plan members.

From what I can find, the only difference between regular Plan F and Plan G, is that Plan G does not cover the Part B deductible and F does. Once Plan F for new enrollees doesn't cover Part B deductible, will Plan F for newbies disappear? Seems like it would, why have two plans, F & G, exactly the same then?

Regular Plan F (NOT high deductible) will no longer be available for new enrollees beginning in 2020. Plan G was created to meet the new Congressional requirement that no plan be sold covering the part B deductible. Essentially Plan G becomes the new Plan F. The existing Plan F remains only for those eligible to purchase it prior to 2020.

Other plans have gone away in the past but remain for those previously on them (i.e. Plan J).

I had a choice of Plan F or Plan G and chose G for the reason stated above (aging insured pool with no new entrants after 2019). There are those who argue that Plan F rates will not rise faster than G citing the example that plan J rates have not skyrocketed. Honestly I don't know how the rates are determined but it seemed logical to me that the G plan rates should trend comparatively lower after 2020. Time will tell.

 

[REWahoo]

REW, do you have any concerns about the future, if/when you or DW's health declines, that you may not be able to switch to a regular Plan F, or G, etc. due to medical underwriting?

Or are you thinking that come what may, riding Plan F H-D all the way to the final round-up will work for you?

I'll probably stick with Plan F-HD to the end. The premium savings will go away if/when our health declines and we pay the deductible amount each year. But since the annual 'regular' Plan F premiums are roughly equal to the F-HD premiums plus the deductible amount, I see that as basically a wash.

I do have some concern about what NMJ states above regarding the potential for higher than normal future increases in Plan F and F-HD premiums. (As I understand it, the changes in 2020 impact both F and F-HD.) There was a lot of noise about that when the "no new enrollees" in Plan F was announced, but it appears much of that was generated by salescritters who were attempting to get those with F and F-HD to change to Plan G and generate themselves a commission. Time will tell, but I'm not overly concerned at this point.

That said, when Plan G-HD goes live in 2020 I may talk with my Medigap insurer (BC/BS) about switching, just to hedge my bet.

 

[MBSC]

...The book on Medicare that I referenced above, mentions a change coming to Plan F (the regular Plan F, not the H-D version) in 2020.

Regular Plan F (NOT high deductible) will no longer be available for new enrollees beginning in 2020.

To clarify, F-HD is also impacted by the 2020 change. G-HD becomes available in 2020.

18. What changes are made to High Deductible Plan options?

Since Plan F High Deductible cannot be sold to those "newly eligible" Medicare beneficiaries, a new Plan G High Deductible is created.

19. When can the new High Deductible Plan G be sold and who can buy it?

Plan G High Deductible can be made available beginning on January 1, 2020; "newly eligible" Medicare beneficiaries and current beneficiaries would be able to buy the new Plan G High Deductible.

Reference: http://www.naic.org/documents/committees_b_senior_issues_170201_medigap_faq.pdf

 

[MichaelB]

I’m eligible for Medicare later this year and will probably get the F- HD, even though the savings in premium vs F or G are not as great as REWahoo enjoys in Tx. It’s impossible to predict how premiums will change over a couple of decades, but I’ve been following MediGap pricing for the past 5-6 years here in Fl and am shocked at how stable the premiums are.

 

[REWahoo]

It’s impossible to predict how premiums will change over a couple of decades, but I’ve been following MediGap pricing for the past 5-6 years here in Fl and am shocked at how stable the premiums are.

In the seven years I've been on Medicare my F-HD premium has increased by an average of 6.5% per year. That's considerably less than I've come to expect for health insurance rate increases. Even at that rate, by the time I'm 100 I'll be paying $400/mo!

 

[Dawg52]

I’m eligible for Medicare later this year and will probably get the F- HD, even though the savings in premium vs F or G are not as great as REWahoo enjoys in Tx. It’s impossible to predict how premiums will change over a couple of decades, but I’ve been following MediGap pricing for the past 5-6 years here in Fl and am shocked at how stable the premiums are.

I was just looking at rates for MS and find the same thing. The premium saving of HD F over G is $730/yr. Still a nice savings but makes me scratch my head a bit. I guess another way to look at this.... would I be willing to pay $730 to cover an item that is worth $2k(the ded in this case)? No....I would always self insure. Of course if a person is unhealthy and sees a doctor several times a year it would make sense to pay the extra premium.

Just for grins if one did enroll in G with a company before 2020.....wouldn't you think that you could easily downgrade to a HD G w/o the potential of underwritings? As long as its with the same insurer?

 

[ivinsfan]

In the seven years I've been on Medicare my F-HD premium has increased by an average of 6.5% per year. That's considerably less than I've come to expect for health insurance rate increases. Even at that rate, by the time I'm 100 I'll be paying $400/mo!

What does this say about the state of medical costs when we think 6.5% every single year is relatively stable? That's a rhetorical question...

 

[REWahoo]

Just for grins if one did enroll in G with a company before 2020.....wouldn't you think that you could easily downgrade to a HD G w/o the potential of underwritings? As long as its with the same insurer?

You would think that would be the case. Then again, this is an insurance company so logic and reason may be in short supply.

 

[Telly]

After a hiatus, I'm back to digging through the entrails of Medicare and Medigap...

REW - Thanks for your insight on your use of Plan F HD!
MBSC - Thanks for the NAIC.Org link. I don't know WHY they are waiting for January of 2020 to roll out Plan G HD, when regular Plan G has been out for a while now.

Thanks to all for listing your Plan letter and current costs.

Other than here at E-R.org, I have had little luck quizzing people who are ON Medicare. Either their situation is not applicable for me due to their Tri-Care or retiree medical, or they don't know/are unsure/or can't be correct on what they think it is that they have. It's as if somebody was going around selling Medicare Plans door-to-door, and didn't leave them with a receipt

So far, it looks like my plan choices are really Plan F HD, and wonder what happens in time, or Plan G. If Plan G HD was available soon instead of 2020, then it would be on the list instead of Plan F HD.