Medicare Supplement Insurance fills in the “gaps” left by Original Medicare by paying for things such as copayments, deductibles, and coinsurance. A high deductible choice is available with some Medicare Supplement policies. The premiums for high-deductible Medicare Supplement Plans are lower than those for regular plans, but the coverage threshold is higher. If the premium difference between the high-deductible and the standard plan is small, then the high-deductible plan may be more cost-effective.
Which High Deductible Medicare Supplement Plans Are Available?
Both Plan F and Plan G have a version with a high deductible. Beneficiaries who became eligible for Medicare after 2020 will no longer be able to get Plan F, or its high deductible option. But anyone can sign up for Plan G with a high deductible.
The only exception is in Massachusetts. Massachusetts is one of 3 states who standardize their Medicare Supplement Plans differently than the rest of the country but they do have the same benefits. In Massachusetts there are only 3 plans available and none of them are high deductible plans.
How Do High Deductible Medicare Supplement Plans Work?
In the majority of states, residents can choose from one of 10 different Medicare Supplement Plans designated by letters. The government sets the benefits for each type of plan. High-deductible options are limited to Plans F and G. The only difference between the standard and high-deductible versions of these Medicare Supplement Plans is the date on which coverage will begin. While standard plans pay for their benefits right away, high deductible plans don’t begin paying for them until the annual deductible is met.
What Do High Deductible Medicare Supplement Plans Cover?
The high deductible versions of Plan F and Plan G cover the same things as their standard counterparts. Plan F is the most popular Medicare Supplement plan and has been for a long time, even though it is unfortunately discontinued. Your only out-of-pocket expense with this plan is the monthly premium for Plan F, as it covers everything else. It covers:
Deductibles for Medicare Part A and Part B
Medicare Part A and Part B coinsurance or copayments
Medicare Part B excess charges
Skilled nursing facility coinsurance
Foreign travel emergency expenses up to plan limits
Since Plan F was discontinued, Plan G has become extremely popular among Medicare beneficiaries and is now among the most widely selected Medicare Supplement Plans. Plan G is the most affordable Medicare Supplement plan and helps fill in the gaps that Original Medicare doesn’t cover. Plan G covers:
Medicare Part A deductible
100% of hospice copayments and coinsurance
Additional foreign travel emergency benefits
100% of Medicare Part B excess charges
How Much Do High Deductible Medicare Supplement Plans Cost?
With a high-deductible Medicare Supplement Plan, you are responsible for both the premiums and the deductible. In 2023, the deductible for high-deductible Plan G and Plan F is $2,700, however it changes yearly. The plan’s premiums vary from person to person. According to Medicare.gov, the premiums for Medicare Supplement Plans are determined by private health insurance providers and can vary depending on a person’s age, gender, geographic location, tobacco use, and health history.
The premiums for high-deductible Medicare Supplement Plans are lower than those for standard Medicare Supplement Plans because members are responsible for paying the deductible before the plan begins paying for covered services. A new Medicare beneficiary of age 65, for instance, may be charged $105 per month for the standard version of Medicare Supplement Plan G, while the high-deductible version may cost only $35 per month from the same insurer. As you get older, the premium gap between the regular and high deductible plans can widen. A Medicare recipient who is 85 might pay $195 per month for Medicare Supplement Plan G, with a low deductible and $60 per month for a high deductible version of the same plan.
Advantages and Disadvantages of High Deductible Plan G
The best thing about a high-deductible health plan is the low monthly premium. People who think they will only need preventive care can save a lot of money. Also, once the deductible is paid, the benefits are the same as with plan G.
A disadvantage of the High-deductible Plan G is that you have to pay the Part B deductible for Medicare for non-hospital care. Also, you don’t get insurance benefits until you’ve paid your annual deductible. Every year, these deductibles start over and usually go up. And, you’ll have to pay the Part B coinsurances until your deductible is met.
Advantages and Disadvantages of High Deductible Plan F
Unfortunately Plan F is no longer available to anyone you became eligible for Medicare on or after January 1st 2020. This is because the Medicare Access and CHIP Reauthorization Act of 2025 included a change that says Medicare Supplement Plans can not cover the Part B deductible. However, if you were eligible before that date or already had Plan F you are still able to keep or purchase it.
As with any option with a high deductible, the main benefit of a high deductible is a lower premium. Once the deductible is paid, the benefits are the same as Plan F. The biggest problem is that if health problems worsen, they can lead to an increase in medical bills. Also, the deductible can change every year, which makes it hard to plan for medical costs in the future.
Is A High Deductible Medicare Supplement Plan Worth It?
When the combined cost of your premiums and deductible is less than the premiums for a standard Medicare Supplement plan, the high-deductible plan makes more financial sense. There are three things you’ll need to consider.
1. If You Can Meet The Deductible
If you’ll spend enough on coinsurance, copayments, and deductibles to meet the Medicare Supplement deductible for a high-deductible Medicare Supplement plan, you should compare quotes to see which one is the most cost-effective. For the high-deductible version to cost less than the standard option, the lower premiums must be more than enough to cover the extra cost of meeting the deductible- remember you have a high deductible. In 2023, the deductible for Medicare Supplement plans will be $2,700, which equates to $207.50 per month. For you to spend less on a high-deductible plan overall, its monthly premiums would have to be at least $207.50 less than those of a standard plan.
2. If You Can’t Meet The Deductible
When you are reasonably confident that you will not be able to meet the deductible, selecting a Medicare Supplement plan with a high deductible is not the best option for you. If you have expenses that are lower than the deductible, the plan will not pay for any of the services that you receive. You are, in all respects, not compensated in any way for the premiums that you pay.
3. If You’re Unsure If You Can Meet The Deductible
If this describes your situation, one way to figure out whether or not a high-deductible Medicare Supplement plan is right for you is to evaluate your current financial standing. Then determine how much money you have available to pay for out-of-pocket medical expenses. When you do not end up meeting the deductible, you will not only be responsible for the cost of the premiums, which are typically quite affordable. But you also run the risk of losing coverage that is available with a standard Medicare Supplement plan. If you are able to meet the deductible, you will be covered from that point. Which will help you limit the amount of money you will have to pay out of pocket in the event that you face unexpectedly high medical costs.
Alternative Options
Another choice for Medicare Supplement coverage that could help you save money on your monthly premiums is the Medicare Supplement Plans K and L. A cost-sharing benefit and out-of-pocket spending caps are included in these plans. A Plan N could be beneficial to you if you want more coverage than what is offered by those two options. In exchange for a few copayments, participants in Plan N pay a premium that is marginally lower than the standard Plan G or Plan F premium.
One more alternative to consider is enrolling in a Medicare Advantage plan. Because the monthly payments are so much more affordable. On the other hand, considering the ongoing out-of-pocket costs that come in the form of copayments and coinsurance, a Part C plan might end up being more expensive in the long run.
Sign Up With EZ
Whether you’re looking for a high-deductible plan or something else, we can help you choose the right policy. We’re here to make it easy for you to weigh your options and choose the most beneficial arrangement possible. Working with an EZ agent will cut down time spent shopping around. You can compare and contrast numerous Medicare Supplement Plan providers and plans by working with a licensed agent. In addition to providing you with cost comparisons, your agent can explain the nuances between the various plans. Furthermore, your agent can assist you in comparing premium costs to out-of-pocket expenses to help you choose the most economical plan. Get started on your search for a Medicare Supplement Plan by calling us at 877-670-3602 right away.
Medical underwriting is a process health insurance companies use to decide how risky you are to insure and how much your premium should be. If you’re eligible for Medicare and want to also add a Medicare Supplement Plan to your Original Medicare coverage, the private insurance company you choose may require you to go through underwriting before you can buy your policy.
Underwriting can be complicated, and each insurance company handles it differently. To help you understand we will go into detail about why companies underwrite, how it works, and when it applies. We’ll also talk about health conditions that will get your application turned down so you know what steps to take if you are.
Underwriting Basics
Underwriting is how insurance companies find out about your health and decide if they want to take on the financial risk of insuring you. It requires a thorough look at your health history, both on the application and in a follow-up phone interview. If a company thinks you have too many expensive health problems, they can refuse to cover you, limit your coverage, or raise your rates.
Insurance companies underwrite people to keep premiums and risks as low as possible and maintain stability. However, limiting access to Medicare Supplement Plans could mean that the people who need the extra coverage the most don’t get it. Logically, if a company takes on more people with expensive health problems, it will have to pay out more money for claims. To make up for the difference, the insurance company would either charge higher premiums or not let those people on the policy at all.
The federal government sets standards for the different types of Medicare Supplement plans and gives enrollees some protections in the form of guaranteed issue (GI) rights, but they have no control over how insurance companies decide who to accept as a customer. Carriers don’t always agree on what makes an applicant uninsurable.
What Triggers An Underwriting Process
If you want to switch from one Medicare Supplement Plan to another, or switch from Medicare Advantage to Original Medicare and you’re not eligible for IEP, then you’ll trigger the underwriting process. You’ll have to answer a lot of questions about your health. The insurance company can also send you to a doctor or nurse for a medical exam to get a better picture of your current health.
You can change from one Medicare Supplement Plan to another any time of year, but you’ll have to be in good enough health to pass underwriting. To return from a Medicare Advantage (MA) plan to Original Medicare with a Medicare Supplement Plan, you’ll have to wait until the Medicare Annual Enrollment Period, from October 15 to December 7, and pass underwriting.
Underwriting Timeline
Underwriting takes time, so we recommend sending in applications two to three weeks before the date you want the policy to start. This will give the underwriter time to look over the application and talk to you on the phone. We’ve found that the underwriting process takes, on average, between seven and ten days, but it could take as little as one day or as long as thirty days. If underwriting takes longer than expected and your application doesn’t start on the first of the month you asked for, the insurance company will either backdate it to the original start date or move it to the first of the next month automatically. If this happens, you should check in with the carrier in case you need the original start date, but the carrier automatically moves it to the next month.
Some companies have started using an auto-accept or auto-reject feature in their online applications, but this only works for clear-cut cases where there is no room for confusion. To get an automatic acceptance, an applicant would have to say “no” to every health question and be in great health. Applicants whose answers lead to a “maybe” will have to talk to an underwriter over the phone for further explanation and complete the underwriting process.
How Underwriting Affects Your Premiums
Depending on the carrier, the results of underwriting can cause premiums to increase. Some companies have less strict rules for underwriting, which means they accept applicants with worse health conditions but raise the premium to make up for it. Applicants with more health problems may be put in another pricing tier called “class” or “level.” Companies use this system to try to find a good balance between keeping premiums from going up too much and giving a lot of people access to the policy.
What Conditions Can I Be Denied For?
Companies that offer Medicare Supplement insurance are more likely to charge you a higher premium than to turn down your policy. However, they can still turn down your application. No matter which company you choose, you may not be able to get Medicare Supplement insurance if you have a certain health condition.
Some medical conditions that often lead to a denial are:
AIDS
Activities of daily living assistance
Alzheimer’s
Atrial fibrillation
Any history of cancer
Cirrhosis
Certain cognitive conditions
Certain medications
COPD
Congestive Heart Failure
Diabetes not under control with medications
End Stage Renal Disease
Heart attack
Implantable cardiac defibrillator
Kidney failure
Multiple Sclerosis
Nebulizer use
Parkinson’s disease
Organ transplant
Osteoporosis
Supplemental oxygen use
Stroke
It’s important to remember that each company has its own rules for underwriting. If one company turns down your application, another may be willing to take on the risk. Working with one of our licensed insurance agents can help you find a “guaranteed issue” policy or a company that will accept your application even if you have health problems.
How To Avoid The Underwriting Process
During certain times when you have guaranteed issue (GI) rights, you will be able to sign up for a Medicare Supplement Plan without having to go through underwriting. During a GI period, insurance companies must sell you a policy without considering your health or any pre-existing conditions. Your Initial Enrollment Period (IEP) is the first seven months after you turn 65, this is when you can sign up for Original Medicare without being penalized.
Your Medicare Open Enrollment Period (OEP) is usually part of your Initial Enrollment Period (IEP). This is when you have a GI right to sign up for a Medicare Supplement Plan. The OEP starts on the first day of the month that you start getting Medicare Part B. It lasts for six months, during which time you can sign up for any Medicare Supplement Plan letter with any insurance company, no matter how healthy you are.
In rare cases, you may be eligible for a Special Enrollment Period, which also gives you the right to a Guaranteed Issue, where you can change your policy without having to go through the trouble of underwriting. There are also parts of the underwriting process you can avoid such as the medical exam. Some states let you change your Medicare Supplement plan without having to go through a medical exam:
Guaranteed Issue is always the case with Medicare Supplement plans in Connecticut. In this state, you have to use community rating methods. But Connecticut is one of the states where Medicare Supplement costs the most.
Beneficiaries in Maine can switch to plans with the same or less benefits during the month of June without having to go through an underwriting process.
There is an anniversary rule that lets people change companies without having to go through underwriting for 62 days. Instead of your birthday, the time is based on the date of the policy.
beneficiaries in Washington state can switch from one policy to another at any time (except for Plan A).
Does Medicare Use Underwriting?
Original Medicare doesn’t use underwriting. The federal government gives this insurance to people over 65 or who have been on Social Security disability for at least 24 months. Underwriting is not used for Medicare Advantage plans or Medicare Part D drug plans. Anyone can sign up for these insurance plans. Keep in mind you can’t have both a Medicare Advantage plan and a Medicare Supplement plan at the same time.
Comparing Plans With EZ
When looking for a Medicare Supplement Plan, it’s important to compare the costs and benefits of each one. That means you’ll have to do a lot of research, which can take a long time since you’ll have to call numerous insurance companies to – receive price quotes. But if you work with an agent from EZ, you can compare prices in half the time. Working with a licensed agent gives you access to many Medicare Supplement Plan carriers and plans in one place.
In addition to giving you price comparisons, your agent can tell you how each plan is different. Also, your agent can help you compare out-of-pocket costs with premium costs to figure out which plan will save you the most money over time. Call us today at 877-670-3602 to start looking for a Medicare Supplement Plan.
You can technically enroll in Medicare and Medicare products on your own. You can do all your own research on Medicare, Medicare Advantage, and Medicare Supplement Plans. Or you can look into all of the providers available. You can even search for quotes for these plans on your own. However, is this the best way to enroll in Medicare? We don’t think so. The issue with doing your own research is that you may not find all of the information you need. Due to years of experience, a Medicare Agent will have more information for you, including things not commonly found on the internet.
Contrary to popular belief, you don’t pay your Medicare agent. Since the insurance companies pay your agent for their services, you never pay them a dime. Your premium will also not increase just because you used an agent. So using an agent is free and absolutely no hidden fees. They are there to give you all the information you need and help you find the best options for you.
What Is A Medicare Agent
Before we dive into why you should use an agent, let’s look at what they actually do. A Medicare agent is a licensed expert who assists you in reviewing and evaluating Medicare plans and their benefits, as well as assisting you in selecting and enrolling in the best plan. There are two types of Medicare agents. The first is an independent agent. This type of agent works with numerous insurance providers and can enroll you in any of their plans. The second type is a captive agent. These agents work with one specific insurance company. EZ’s agents are independent so we can provide you with plans from all providers.
Benefits of Medicare Agent
We know it’s hard to trust that you’ll be in good hands. So, we’ve made a list of reasons a Medicare agent could be beneficial to you. Since EZ’s agents are independent we’ve based this list on the benefits of working with independent agents.
1. Expert Knowledge
Simply put, Medicare can be confusing. You can spend countless hours reading about Medicare and its products and you could get a fairly solid understanding of how it operates. However, our Medicare agents continuously educate themselves and are familiar with Medicare’s rules and regulations, which changes frequently. A simple mistake, such as missing your Initial Enrollment Period (IEP), could result in penalties or delays in coverage. Even selecting the wrong Medicare Supplement Plan can leave you with big gaps in your coverage. Meaning you’ve got unnecessary money coming out of your pocket for healthcare costs that you could have saved with the right plan. When it comes to Medicare, the devil is in the details. Our agents will ensure that you are educated and supported through your entire Medicare journey.
2. Help Choosing a Plan
Once you’re eligible for Medicare it’s not as simple as enrolling. You have some options to consider. For instance, you can choose to enroll in a Medicare Advantage plan instead of Original medicare. If you enroll in Medicare Advantage through a private insurer you’ll still have Medicare but your coverage comes directly from the Advantage plan rather than Original Medicare. Medicare Advantage can include additional coverages such as vision, hearing, dental and wellness programs. They also usually have prescription drug coverage under Medicare Part D.
On the other hand you can choose to stick with Original Medicare and then purchase a Medicare Supplement Plan and enroll in Part D on your own. Going this route also gives you these additional benefits but deciding which path to take depends on your specific needs. You need a thorough understanding of each path in order to choose the right one. There are so many factors to consider, like your budget, provider networks, and current prescriptions. Our licensed agents understand the pros and cons of both paths and as they get to know your circumstances, they can help you figure out which is the best one for you.
3. Help with underwriting
Underwriting is a process that private insurance companies use to figure out your health stats when you apply for health insurance, such as Medicare Advantage or Medicare Supplement. The process helps companies decide how much your premium will be. Our Medicare sales agents are very familiar with the underwriting application questions from various companies. Suppose you are interested in switching Medicare Supplement companies. We can match you with the company that is most likely to accept you –even if you have a medical condition that you think might make you ineligible. We’re here to find you coverage, no matter what.
4. Benefit clarity
When you’re searching for coverage or deciding what choice is best for you, you’ll mainly be looking at benefits. Our agents can help you read through all the legal jargon to find out what benefits are specifically being offered and if they’re beneficial to you.
5.Access to a variety of providers
Medicare agents work for you, not the insurance company. So we won’t just offer you plans from one source, we offer you dozens of options. We can research pricing for nearly every provider in the country for any given plan. For instance, Medicare Supplement Plans are standardized, meaning the plans all have the same benefits no matter where you live or who you buy them from. So, say you like Plan G, you can compare prices from all the available providers in your area. Why pay more than necessary for the same coverage? When you work with a Medicare agent you never will.
6. Continued service
Your relationship with your agent continues even after you enroll in Medicare. During the annual enrollment period, your agent can help you review your coverage. Then, they can help you decide if your current plan is still the best option or whether you need to make adjustments. They will then help you make those adjustments. They can also help you with any concerns or questions about your coverage no matter the time of year or how long you’ve had Medicare. Once you find an agent they are available to you the entire time you have Medicare.
7. Time saver
Working with a Medicare agent can save you a great deal of time. You won’t be stuck spending hours, days, or even months researching Medicare and looking for plans on your own. Agents can compare every plan for you quickly and efficiently. They can also answer any questions you have immediately and accurately rather than having to read through hundreds of internet searches hoping to find the answers you need and hoping the answers you find are accurate .
8. It’s free!
You don’t pay any fees to work with a Medicare agent. Using their services is completely free. You’re probably wondering, “So, how do they get paid?”. Their pay comes directly from the insurance companies. Most agents are paid commission. When they enroll you in a plan, the insurance company pays them for the first year of coverage as well as an initial sum for each year you are enrolled. Now, don’t worry, they aren’t incentivized to enroll you with a specific company. So you don’t have to worry that they’ll push you to enroll with a certain company to get more commission. They’re only motivation is getting you enrolled in the best coverage possible.
Choosing a Medicare Agent
After you provide us with some fundamental information through EZ, we will provide you with quotes and match you up with an insurance agent who is the most suitable for your circumstances. Who we match you up with depends on a variety of factors, including your location and the kind of coverage you’re looking for in a plan. We take measures to ensure that your agent is familiar with the area in which you live. This way, you won’t have to worry about being assigned an agent who lives in another part of the country and who isn’t as knowledgeable about the services provided in your area as a local agent would be.
Why Work With EZ
EZ is able to help you with enrolling in Medicare, buying a Medicare Supplement Plan, or even just answering any questions you might have. We can also help determine which options are best for you. Our insurance agents work closely with a number of the country’s most well-known and respected insurance companies. They are able to give you a free analysis and quotes that compare all of the plans offered in your area. First our agents will talk with you about your medical needs and your budget. Then we help in finding you a plan that we can help customize to fill those needs while staying well within your budget. We can actually save you hundreds of dollars a year. If you’re ready to start, simply enter your zip code into the bar below or give us a call at 877-670-3602 and we’ll get the process started right away.
Original Medicare, which is made up of Medicare Parts A and B, pays for a portion of the health care services you may need. However, it does not cover the cost of everything, and you may have to pay some things out of pocket. Thankfully, Medicare Supplement plans can help with this. These plans fill in some of the “gaps” in Original Medicare and will help you save money in the long run by paying for certain Medicare deductibles, copays, coinsurance, and other costs. Two of the most comprehensive Medicare supplement plans are Plan F & Plan G. In order to decide if one of these plans might be a good fit for you, you will need to explore what they cover and how much they cost.
Medicare Supplement Plan F
Medicare Supplement Plan F is one of the most popular Medicare Supplement Plans because it offers the most coverage out of all of them. But unfortunately, it’s no longer available to everyone on Medicare.
When compared to the other Medicare Supplement Plans that are currently available, Medicare Supplement Plan F has the most benefits and fills the coverage “gaps” left by Medicare Parts A and B best. For a low monthly premium, this plan lets you go to a doctor’s office or hospital, get approved treatment, and leave without paying anything out of pocket.
Plan F also covers other Medicare-approved expenses that aren’t related to Parts A or B. This includes coverage for emergencies that happen while you’re traveling abroad and coinsurance for skilled nursing facilities. Plan F is also notable because it is one of only two plans that covers Medicare Part B excess charges.
Plan F can only be bought if you had qualified for Medicare before December 31, 2019. Anyone who has become eligible after that date is unable to purchase Plan F. Even if you qualify, it can be a lot more expensive than other Medicare Supplement Plans, so you may end up spending more than the value of the extra coverage you’d get.
What Plan F Covers
As was said above, Medicare Supplement Plan F covers all of the services that Medicare Parts A and B cover, but with less out-of-pocket costs. If your doctor accepts Original Medicare and it is your main insurance, Medicare Supplement Plan F will cover everything that Original Medicare doesn’t. That includes:
Part A hospital deductible and coinsurance
Hospital costs up to an additional 365 days after Medicare benefits are exhausted
Part A hospice care coinsurance or copayment
Blood (the first 3 pints)
Other Medicare-approved expenses associated with Part A hospitalization
Medicare Part B 20% coinsurance and copayments
Medicare-approved doctor’s office fees
Part B deductible
Medicare Part B excess charges
Other Medicare-approved expenses associated with Part B coverage
Plan F Costs
Medicare Supplement Plan F may have higher premiums than other Medicare Supplement Plans, but that’s because it has the most benefits compared to the plans. Medicare Supplement Plan F costs about $230 per month on average, but premiums can be anywhere from $150 to $400 per month or more. This is because many things can affect the price of your premium, such as your zip code, gender, age, whether or not you smoke, and so on.
Medicare Supplement Plan G
Plan G is one of the best options for people who don’t qualify for Plan F. Medicare Supplement Plan G is a top choice for anyone who has Medicare. If you choose Medicare Supplement Plan G, your out-of-pocket costs will usually be a fraction of what they would be if you only had Original Medicare, since you will only be paying one low premium price. Then, once you’ve paid your annual Part B deductible, the rest of your health care costs for the rest of the year will be covered in full.
What Plan G Covers
Medicare Supplement Plan G covers a wide range of services and helps you save money when you use Medicare-approved medical services. As previously mentioned, one of the best things about Plan G is that it pays for all Medicare-related costs after your Part B deductible has been met. Many other Medicare Supplement Plans, on the other hand, require you to pay more out-of-pocket costs after you’ve paid your Medicare Part B deductible.
All of this means that because Medicare Supplement Plan G covers a great quantity, it helps you keep your out-of-pocket costs low. Here’s a breakdown of exactly what’s covered:
Part A coinsurance and hospital costs up to an additional 365 days after Medicare benefits are used up
Part A deductible
Part A hospice care coinsurance or copayment
Part B coinsurance or copayment
Part B excess charges (if a provider is permitted to charge more than Medicare’s approved amount and does so)
Blood transfusion (first 3 pints)
Plan G Costs
Plan G costs different amounts depending on where you live, your age, whether or not you smoke, and your gender. For example, the monthly premiums for Medicare Supplement Plans are usually higher in places where the cost of living is higher. So, the monthly premiums for Medicare Supplement Plan G are usually between $100 and $300.
How They Compare
Plan F and Plan G are two of the most popular Medicare Supplement plans that people who qualify for Medicare can choose from. Both plans cover costs in addition to what Original Medicare does, but there are some differences between them that you should think about when deciding which one is best for you. Looking above you’ll notice they cover a lot of the same things:
Part A deductible
Part A coinsurance
Part B coinsurance or copayment
The first three pints of blood used in a transfusion
Skilled nursing facility coinsurance or copayment costs
Hospice care coinsurance or copayment costs
Medicare excess charges (up to 15% more than the amount Medicare says a service is worth)
Foreign travel emergencies
Plan F covers the annual Medicare Part B deductible, but Plan G does not. This is the main difference between the two plans. Even though Original Medicare Part B deductibles are getting more expensive over time, it may still make financial sense to choose Plan G because it usually has a lower monthly premium than Plan F.
Plan F and Plan G have similar coverage, but Plan G is the most complete Medicare Supplement plan for new Medicare recipients. This is another important difference between the two.
Plans F and C are no longer available to new Medicare recipients because of new laws passed by the federal government. You can still apply for Plan F if it’s available where you live and if you were eligible for Medicare before 12/31/19. You are able to keep using Plan F if you obtained it before 2020.
Pros and Cons
As with all insurance options, Plan F and Plan G come with both advantages and disadvantages. So let’s take a look at what these are.
The pros:
Plan F is the best Medigap plan because it covers more Medicare-approved costs at 100% than any other plan. It also gives you the option of choosing a high deductible, which lets you pay lower premiums while still being covered for all approved costs once you’ve met your deductible.
Plan G covers almost all of the same approved Medicare health care costs as Plan F, except for the annual deductible for Medicare Part B. Before your insurance pays for Part B, you will have to pay for it out of your own pocket. Still, the premiums may be cheaper than Plan F, depending on where you live and how much coverage you want. Plan G also has a version with a high deductible that usually has even cheaper monthly premiums.
The cons:
Unfortunately, both plans don’t cover prescription drugs. Original Medicare recipients can add a Medicare Part D prescription drug plan, which only covers prescription drugs, or they can sign up for a Medicare Advantage plan (also called Medicare Part C), which covers their Original Medicare health benefits and may cover prescription drugs.
If you choose the version of either plan with a high deductible, you may have to pay more due to the need for more money up front before any coverage is able to begin.
FAQs
Which is better?
Plan F covers a little bit more than Plan G, but not by much. Its premiums and deductibles are higher than those of Part G. In the end, the best choice will depend on what you need and how much money you are able to spend. If you are thinking about either plan, you should talk to a Medicare agent to find out which one they feel is best for you.
Should I switch from Plan F to Plan G?
It can be a good idea to switch from Plan F to Plan G depending on your needs. If you switch to Plan G, which is usually less expensive than Plan F, you may save money on premiums. In the end, it depends on what you need and how much money you have. You can switch plans at any time, but if you don’t have “guaranteed issue rights,” the insurance company can use “medical underwriting” to figure out how much your premiums will be and may even refuse to cover you.
Why Is Plan F Discontinued?
Federal law says that Medicare Supplement plans can no longer pay for the Medicare Part B deductible. The goal of the change is to cut down on visits to the doctor that might not be necessary, which will save money on health care.
Working With EZ
When looking for a Medicare Supplement Plan, it’s important to compare the costs and benefits of each one. That means you’ll have to do a lot of research. Which can be time consuming as you’ll have to call multiple insurance companies to get price quotes. However, if you work with an agent from EZ, you can compare prices in half the time. Working with a licensed agent gives you access to many Medicare Supplement Plan carriers and plans in one place. In addition to giving you price comparisons, your agent can tell you how each plan is different. Also, your agent can help you compare out-of-pocket costs with premium costs to figure out which plan will save you the most money over time. Call us today at 877-670-3602. Or enter your zip code in the bar below to start looking for a Medicare Supplement Plan.
Part A (hospital insurance) and Part B (medical insurance) pay for a lot of your healthcare needs, but they are not able to cover everything. Before your insurance kicks in, you’ll have to pay a deductible. After that, you’ll have to pay other fees, like coinsurance, which is a percentage of certain costs. Also, Original Medicare doesn’t cover routine services like eye, dental, and hearing care, so you may be paying more out of pocket costs than you think. Some people buy Medicare Supplement Insurance or a Medicare Advantage plan (also called Part C) to help pay for these costs. The way each one works is a little bit different so you will need to compare them to help figure out which one might suit you best.
Medicare Supplement Insurance works with your Original Medicare plan. It helps pay for services that Part A and Part B don’t cover, like traveling outside the country and extra costs, such as when a doctor doesn’t accept Medicare. It can also help pay for your Part A deductible, which was $1,556 in 2022 and the 20% coinsurance you’ll have to pay for your Part B coverage. Keep in mind that Medicare Supplement Insurance isn’t a standalone plan, so you’ll need to sign up for Original Medicare first. Prescription drugs are another thing that Medicare Supplement doesn’t pay for, and you will need a third plan, Medicare Part D, for that.
Plans A, B, C, D, F, G, K, L, M, and N are the 10 different Medicare Supplement insurance plans that exist as of right now. Unfortunately, people who sign up for Medicare after January 1, 2020, will no longer be able to choose Plans C and F. Medicare Supplement plans cover 100% of your Part A coinsurance costs, which is the percentage you pay for services after you reach your deductible. Most plans also cover 100% of your Part B coinsurance and copayment costs.
If you choose Medicare Supplement, keep in mind that it will also cost you money every month. The amount depends on the plan, but each month it could be hundreds of dollars and some plans also have co-pays and deductibles.
How Much Does Medicare Supplement Cost?
How much you pay for your Medicare Supplement premium can depend on your plan, your age, and where you live. In general, the cost of your plan can go up the more coverage you choose. Some Medicare Supplement plans limit how much you have to pay out of your own pocket. For a clear idea of how much you’ll pay, check out our state-by-state Medicare Supplement Plan guides.
Medicare Supplement Eligibility
You’re eligible to buy a Medicare Supplement plan if you’re:
65 years old or older.
Have signed up for Parts A and B of Medicare.
Currently living in a state where the policy you want is offered.
In some states, even if you are younger than the age of 65, you can get Medicaid if you have a disability or end-stage renal disease (ESRD).
The Medicare Advantage (MA) plans are an alternative to Original Medicare. Private insurance companies are able to give them out. Under an MA plan, you’ll still get Parts A and B, but you may also get Part D and other benefits, like regular hearing, vision, and dental care, all in one policy. By law, Medicare Advantage plans cover the same kinds of care as Original Medicare. For example, hospital stays, doctor visits, and lab tests are all covered by Medicare Advantage plans. However, before the plan will pay for the costs, you may have to stay in the network or get a referral. You can choose any doctor who takes Original Medicare.
If you sign up for Medicare Advantage, your benefits will be handled by that private plan and Original Medicare will no longer cover you. You also won’t be able to sign up for a Medicare Supplement plan or a Part D plan that stands on its own. Many Medicare Advantage plans don’t charge a premium on top of what you already pay for Part B. You may still have a deductible, copays, and coinsurance, but most MA plans limit how much you have to pay out of pocket each year, this is known as the out-of-pocket maximum.
How Much Does Medicare Advantage Cost?
Premiums, deductibles, and other costs for Medicare Advantage can vary by plan and change every year. To stay in your plan, you must pay the Part B premium, which was $164.90 in 2023 and keep paying it. The out-of-pocket limit can also vary by plan, but once you reach it, the plan pays for all of your covered health services for the rest of the year.
Medicare Advantage Eligibility
To sign up for a Medicare Advantage Plan, you must:
Sign up for Parts A and B of Medicare.
Live in the area where the plan is available.
Be a U.S. citizen or are in the U.S. legally.
Comparing Medicare Supplement and Medicare Advantage
There are several ways in which Medicare Supplement and Medicare Advantage plans are different. A Medicare Advantage plan (Medicare Part C) is an all-in-one option with low monthly premiums. Medicare Supplement plans provide extra coverage on top of Original Medicare for little or no extra cost. Let’s take a look at all of the differences.
Coverage
Medicare Advantage includes Original Medicare Parts A and B, plus extra benefits like routine dental, vision, hearing, and fitness services. While Medicare Supplement Plans help fill in Original Medicare’s “gaps” by paying for out-of-pocket expenses that Parts A and B won’t cover.
Enrolling
There are specific enrollment periods throughout the year during which you are able to sign up for a Medicare Advantage plan or switch to a different one. After turning 65 and enrolling in Medicare Part B, you are eligible to apply for a Medicare Supplement policy at any point after that age.
Providers
You may be required to use hospitals and doctors that are part of the Medicare Advantage network if you have Medicare Advantage. You are free to visit any doctor in the country who participates in Medicare if you have Medicare Supplement Plans.
Referrals
Medicare Advantage plans are more likely to require referrals to see specialists, while Medicare Supplement Plans do not require referrals at all.
Costs
Medicare Advantage has lower premiums but includes copays. Medicare Supplement Plans have higher premiums, but little to no copays.
Prescription coverage
Medicare Advantage Plans may include a Part D prescription drug plan with your policy. With Medicare Supplement Plans you’ll have to enroll in Medicare Part D separately to get this coverage.
Underwriting
Medicare Advantage has no medical underwriting and includes coverage for any and all health conditions. Medicare Supplement plans also have no underwriting as long as you enroll during your IEP. If you don’t enroll during this time, there is a possibility you will face underwriting.
Switching From One to The Other
You can’t change from Medicare Supplement to Medicare Advantage whenever you want. You’ll have to wait until the Medicare Open Enrollment Period, which runs from October 15th to December 7th each year. Before you sign up for a Medicare Advantage plan, you should tell your Medicare Supplement insurance company that you are dropping it.
On the other hand, if you want to switch to Original Medicare and buy a Medicare Supplement policy, you should check with your Medicare Advantage Plan to see if you can drop out. If you can leave a Medicare Advantage plan and go back to Original Medicare, you can only do so during two enrollment times:
The Medicare Advantage Open Enrollment Period (MA OEP) between January 1st and March 31st.
The Annual Enrollment Period (AEP) between October 15th and December 7th.
You can usually sign up for a Medicare Supplement plan once you’re enrolled in Original Medicare. When you switch from Medicare Advantage to Original Medicare, you usually lose your right to “guaranteed issue” Medicare Supplement coverage. When you are 65 or older and signed up for Medicare Part B, you usually have guaranteed-issue rights for 6 months. If you don’t have guaranteed-issue rights, insurance companies may check your health status before they sell you a plan.
How To Choose
If you want to know what your costs will be, be able to choose any doctor, avoid referrals, and feel safe when traveling, then you will need a Medicare Supplement plan. If you are willing to trade a lower monthly premium and more benefits for copayments that can change, as well as strict doctor networks, and referrals, then Medicare Advantage may be a good choice for you. The best thing about working with agents is that no matter which option you choose, we’ll make sure it’s the best one for you.
Working With an EZ Agent
We don’t offer Medicare Advantage, but if you’re looking for a Medicare Supplement Plan, it’s important to compare the benefits and costs of each one. That means you’ll have to do an abundance of research, which can take a while since you’ll have to call a lot of insurance companies to get price quotes.
If you decide to work with an agent from EZ, you can compare prices in half the time. Working with a licensed agent gives you access to many Medicare Supplement Plan carriers and plans in one place.
In addition to giving, you price comparisons, your agent can tell you how each plan is different. Also, your agent can help you compare out-of-pocket costs with premium costs to figure out which plan will save you the most money over time. Call us today at 877-670-3602 to start looking for a Medicare Supplement Plan.
Medicare Medical Savings Accounts (MSAs) are a special type of Medicare Advantage plan that combines a high-deductible health plan (HDHP) with a medical savings account. The HDHP portion is a type of health plan where you have to pay a large annual deductible before your coverage benefits kick in. Specifically, you are responsible for the full cost of any Medicare covered services until you meet your deductible. After you meet the deductible, your plan covers 100% of all covered services.
The savings account portion is a savings account set up by your insurance company. Medicare annually deposits a predetermined amount into the account. The amount varies depending on the plan you select but is always less than your HDHP’s annual deductible.
Just like other Medicare Advantage plans, MSAs are offered by private insurance companies that are approved by Medicare. These accounts are tax-free and allow for tax-free withdrawals for medical expenses. While similar, these plans differ from regular Medicare Advantage plans in several ways, which we will get into below.
How MSAs Work
You can immediately pay for medical services with your MSA. You are not required to wait until you meet your HDHP’s annual deductible to access it. In fact, money you use from the account on Medicare approved health services will actually help you meet that deductible. For instance, say you have an MSA plan with a $4,000 deductible and Medicare deposits $2,500 annually into your MSA. If you spend your $2,500 on Medicare-covered medical expenses, you’ll meet your deductible. Now suppose you spend the $2,500 in another way. Such as $1,500 on dental expenses and $1,000 on medical costs. Only the $1,000 will count towards your deductible. This means you now have to pay an additional $3,000 before your deductible is met.
However, there are some rules to the MSA account that you should keep in mind. For one you don’t deposit funds into this account, but you can withdraw them at any time. The account will accrue interest, and any money you don’t use will carry over into the next year. While funds you use for medical services are tax-free, any non-medical expenses could cost you. You may face a 50% tax penalty for non-qualifying medical expenses, and the money will be considered taxable income.
Qualifying Medical Expenses
While all qualifying medical expenses are exempt from federal income tax, not all of them count towards your deductible. Keep in mind that if you use your MSA for expenses that don’t count towards your deductible, you may have to pay more out-of-pocket before your HDHP provides coverage.
Qualifying medical expenses that count towards your deductible are generally inpatient and outpatient services that Medicare Parts A and B cover such as:
Hospital stays
Doctor visits
Durable medical equipment (DME)
Home health care
Skilled nursing care
Expenses that don’t count towards your deductible are:
Dental care
Vision care
Part D or other prescription drug coverage cost-sharing (premiums, deductibles, copayments, coinsurance)
To enroll in a medical savings account plan there are some eligibility requirements. First you have to enroll in Medicare Part A and Part B. This can be easy if you are receiving social security benefits because then you will automatically be enrolled in Parts A and B. Also, if you are eligible for Social Security or Railroad Retirement Board benefits (RRB) you don’t have to pay a premium for Medicare Part A. So basically, if you qualify for Medicare you can enroll in an medical savings account. You can enroll in an MSA plan unless:
You have health insurance that covers the Medicare MSA deductible. This includes benefits from an employer or union sponsored retirement plan.
If you get benefits TRICARE or the U.S Department of Veterans Affairs.
You’re a retired federal employee and participate in the Federal Employees Health Benefits Program (FEHBP).
You’re eligible for Medicaid.
You have End-Stage Renal Disease (ESRD), However you can still enroll in an MSA plan if you formally had a Medicare Advantage Plan and left Medicare and you haven’t joined another Medicare Advantage Plan yet.
You currently receive hospice care.
If you live outside of the U.S for more than 183 days a year in total, either consecutively or not.
Pros and Cons Of MSAs
Deciding whether or not to use an MSA is highly personal. You have to consider your current financial situation as well as any medical needs you need or anticipate needing in the future. Take a look below at the pros and cons list to help decide if this is the best plan for you.
Pros
If you are unable to afford the higher premiums of a traditional plan, the HGHP plans can prove to be a more cost-effective alternative. An MSA refuses total costs, creating a Medicare plan with several advantages, especially if you are in good health. You do not pay into this account so there are no additional enrollment fees. Additionally, funds roll over annually. So if you are in good health you have the opportunity to continue saving your MSA funds year after year. Thus creating a large healthcare fund for any emergencies. Finally, there is no tax penalty on funds you use for qualifying medical expenses. This allows you to spend the money on medical expenses without having to report it as income.
Cons
The most significant disadvantage of an medical savings account is the high deductible. If you don’t reach this deductible within the year you could be left with large medical bills that you have to pay out-of-pocket. Additionally, if you use the funds for non-medical expenses you face a severe tax penalty. Meaning you have limited financial flexibility in the event of a non-medical emergency.
Cost of MSAs
The premiums for these plans vary depending on your plan. Additionally you have to continue to pay your Medicare Part B premiums. Your out-of-pocket expenses will also vary based on your plan and how you use your MSA funds. Different plans have different deductibles, and Medicare deposits varying amounts of money into your account.
MSAs Vs. HSAs
In some respects, the concept of an MSA plan is similar to high-deductible health plans (HDHPs) and health savings accounts (HSAs). However HSA contributions come from your employer, you, or anyone else who wants to contribute to the account. Whereas MSA contributions come from your Medicare Advantage plan. The money comes from funds that Medicare allotts to you, meaning you cannot contribute to your own MSA.
You can then use the MSA funds to pay for medical expenses throughout the year. Your MSA withdrawals are tax-free as long as you use them for qualified medical expenses. You can also use the funds for non-medical expenses, such as groceries, rent or utility bills. However any non-medical withdrawals are considered taxable income and also have a 50% penalty.
Similar to HSAs, MSA funds that remain unused at the end of the year will roll over into the following year. If you maintain your plan then next year’s deposit will be added to the funds remaining from the previous year.
MSAs Vs. FSAs
An MSA is typically for Medicare recipients, while a flexible spending account (FSA) is typically for employees with optional coverage. Accounts for FSAs have a “use it or lose it” rule. Meaning the funds will not roll over. However, some plan administrators may provide brief grace periods at the end of a benefit year to give employees an extra chance to spend the funds. FSAs are not a great long-term savings option, even for those who can benefit from the tax savings they offer. Additionally, if you change employers, you will most likely lose your FSA. Unlike MSAs, FSAs typically do not allow you to use the funds for non-medical expenses.
When to Enroll
You can enroll in an MSA when you first become eligible for Medicare during your Initial Enrollment Period (IEP). This is the 7-month period that starts 3 months before you turn 65, including your birth month, and then comes to a close 3 months after you turn 65. If you are eligible for Medicare due to a disability, you can enroll 3 months before and after you’ve received at least 25 months of disability benefits. You can also enroll during the fall Open Enrollment Period, between October 15th and December 7th every year. If you enroll during this time, your coverage will start on January 1st.
Let EZ Help
If you’re interested in an MSA, EZ.Insure can help you compare options based on deductibles and benefits, such as vision and dental care. We will assign you with your own personal agent who can answer all of your questions and help you find the best plan while saving you money. Our help is totally free! To get your free instant quotes give one of our licensed agents a call at 877-670-3602 or simply enter your zipcode into the box below. Let us remove the hassle of shopping around and make it simple for you.
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