Medigap Plan F Explained

Medigap Plan F


Medigap Plan F is the most popular Medicare supplement plan. There are a few reasons for this (which we will explain below). If you currently have a Plan F you will want to make sure you have the best rate possible.

What does a Medigap Plan F cover?


People are often confused by the 10 different Medicare supplement plans. However, in the end, the plans are simple. If you have a Medigap Plan F, it will pay the $1,156 Part A deductible for a hospital stay and the coinsurance for days 61-365. It will also pick up any other Medicare covered expenses that you incur while in the hospital. Medigap Plan F will also cover your annual $140 dollar part b deductible.

Generally, if you have Medicare Part A and Part B, along with a Medigap Plan F, you will rarely have any medical expenses out of your pocket. Many seniors pick this plan because of that.

Plan Rates and Premiums


In 1991, the government made it much easier to understand Medicare supplement plans. Before 1991, each company could offer many different types of plans from company to company. However, due to the standardization Act of 1991, companies have to offer 10 basic Medicare supplement plans that are set by the government and CMS. These plans are required to be identical from company to company. The only factor that is different from company to company is the price. Generally, it would make sense to go with the best price.

Rate increases explained


People often ask why some companies charge so much more than another company if the Plans have identical benefits. This can seem confusing on the surface. As the old adage goes…you get what you pay for!

However, in the case of Medigap plans, this is not the case. When you sign up for a Medicare supplement company, you are generally grouped into a risk pool with other seniors in your particular state. Sometimes, the companies risk pool can take a big hit. Meaning, if a lot of people in your pool were really sick last year, there is a good chance the supplement company paid out a lot of claims.

Medicare supplement companies are just like any business. They look at claims paid out and premiums taken in. If they paid out more claims than they received in premiums, there is a good chance that your Medicare supplement will take a decent size increase.

There really isn’t a good way to tell how much your Medicare supplement will go up from year to year. However, you might want to ask your agent how old the block of business is in which you will be grouped into. Often, the newer the blocker of business in your particular state, the less increases it will have incurred.

If you need a more detailed idea of all the medigap plans you can go HERE.