Why You Should Buy Medicare Plan F if You Qualify

Medicare Supplement Insurance, or Medigap, is sold by private insurance companies and helps fill the "gaps" in Original Medicare. A Medigap policy can help cover some of your out-of-pocket costs such as copays, coinsurance and deductibles. They may also cover some services Medicare doesn't, such as medical expenses while traveling.

There are several types of Medigap plans, including Medicare Supplement Plan F, which is one of the most popular. This plan covers both Medicare Part A and Part B deductibles, and all copays and coinsurance, so you pay nothing out-of-pocket for those expenses — just your Medigap Plan F premium.

If you're eligible for Plan F, you may want to enroll due to the significant cost savings over the course of your life. Here's more information about what Plan F is and why you should consider buying it.

What is Plan F?

If you're enrolled in Medicare Part A and Part B and became eligible for Medicare prior to January 1, 2020, you may be able to enroll in a Medicare Supplement Plan F. Or, if you already have Plan F, you can keep it.

If you became eligible for Medicare on or after January 1, 2020, you're not eligible to enroll.

Plan F covers:

• Medicare Part A coinsurance and hospital costs
• Medicare Part B coinsurance and copayments
• Blood (first 3 pints)
• Part A hospice care coinsurance and copayments
• Skilled Nursing Facility (SNF) coinsurance
• Part A deductible
• Part B deductible
• Part B excess charges
• Foreign travel emergency costs (up to plan's limits)

Plan F also covers medications administered in a hospital or outpatient setting, but it does not cover retail prescriptions like you'd get from a pharmacy. You must have a Part D prescription drug plan for this coverage, and you'll pay those copays and coinsurance out-of-pocket.

Medigap Plan F also does not cover routine dental, vision or hearing services.

Why should I buy Plan F?

The primary reason to purchase Plan F if you're eligible is because you have zero out-of-pocket costs associated with Part A or Part B services or supplies. This includes your inpatient and outpatient deductibles, monthly premiums, and the 20% coinsurance Medicare doesn't cover for services.

After Medicare pays its share of your claims, Plan F pays all of the remainder. This leaves you with $0 out-of-pocket, helping to save you money on medical bills and keep dollars in your wallet.

You can also see any doctor who accepts Medicare, and there are no referrals required to see a specialist. Plus, your coverage is guaranteed renewable, which means it can't be canceled due to your health conditions or the number of claims you file.

How much does Plan F cost?

While most plans do have a monthly premium, which vary by your location, gender, age and tobacco usage, the cost savings of having a Plan F will likely outweigh the premium you'll pay.

It's important to enroll as soon as you're able because the healthier and younger you are, the more likely you'll have a lower monthly premium.

Also note that benefits for Plan F are the same from company to company. This means you can compare Plan F costs and how those rates may change over time, and consider enrolling in the cheapest plan in your area. However, be sure to get quotes from these plans prior to enrolling because due to medical underwriting typically required when switching plans, you may have to pay a higher premium.