High Deductible Options

Friday, February 1, 2008

Medicare supplements have a high deductible option on Plans F.  On this plan, a person with Medicare Parts A and B can choose a plan with a deductible of $2,000 in 2011.  The benefit for the insured is lower premiums.  Often the premiums are half of what they would have been if the  standard Plan F had been chosen.  Obviously, the downside is more financial responsibility on the part of the insured.  With a high deductible plan, the insurance company does not start paying until the insured has met the deductible.  Medicare Parts A & B will pay in their normal manor but the policy will not begin paying until the copays and coinsurance reach the $2,000 deductible in 2011.  Whether or not this is a good fit depends on the individuals willingness to accept greater risk based on the price.