Medigap policies are insurance plans which individuals can purchase to help fill the coverage gaps left by Medicare. These plans are sold by private insurance companies and are optional for all recipients of Medicare. Medicare plan F is one of these plans, which are also known as supplemental insurance.
This supplemental plan is the most comprehensive one available and is therefore the most expensive to purchase. It will vary in cost according to what insurance company is selling the policy, but the coverage it offers will remain the same regardless.
Plan F covers the costs listed below.
- The deductibles for both Medicare Part A and Part B.
- Part B coinsurance and co payment, even for preventative care as well as any excess charges.
- Hospital and coinsurance costs for up to 365 days for Part A coverage, after Medicare benefit limits have been reached.
- Will pay for up to three pints of blood annually, when the blood is used in a Medicare-approved medical procedure.
- Co payment and coinsurance for hospice care under Part A as well as the coinsurance for a skilled nursing facility.
- All costs are covered in a skilled nursing facility after 101 days.
- Medical emergencies which occur when traveling out of the country, up to $250 in any calendar year.
- Covers 20 percent of medical costs for the first $50,000 of care in a foreign country and then 100 percent after.
By federal law, Medicare Plan F must be offered if an insurance company wants to offer any supplemental plans. There are many standardized restrictions insurance companies must follow, but the standards to vary in the states of Massachusetts, Wisconsin and Minnesota.
Even after purchasing a supplemental plan like Plan F, the covered party will still need to continue paying the premium for their Medicare Plan B coverage. Medicare Part A is often covered, but if specific requirements are not met, a premium will need to be paid for this policy as well.
While coverage is much more comprehensive with this supplemental plan than with any other, the higher premium costs and the high-deductible which come with the plan must be taken into account as well.