This article will attempt to explain high deductible Medigap plans. In the process one can hopefully discern whether such plans are dangerous, if so why, and if these plans are appropriate for some people.
Medigap plans that have a high deductible have cheaper premiums or monthly payments. If you are not familiar with Medicare Plans or Medigap Plans, letters of the alphabet designates the different types of plans. Medigap Plans F and J are the have the highest deductibles. Medigap Plan J is no longer available but those who are currently enrolled do not lose the coverage provided under that plan. These plans do not go into effect until you meet your out of pocket deductible of $2000. This means you will pay $2000 of expenses out of your pocket every year before you see any benefits paid from these insurance plans.
The premiums for High Deductible Medigap Plans are lower as stated previously. But the deductible is also higher. This means these plans are best for seniors with economic resources that will provide the necessary capital to meet these high deductibles. One variable that affects the choice of Medigap Plans is the health of the covered individual. It would be wise for those seniors who opt for the higher deductible Medigap plans to be in excellent health. Since no one has a crystal ball this variable is essentially an unknown factor. Changing Medigap Plans after ones health situation changes is sometimes difficult. Those with limited economic resources or a fixed income should carefully consider how meeting these high deductibles might influence their financial situations before enrolling in such a plan.
These high deductible Medigap Plans can be dangerous for individuals who are on a limited or fixed income. They are also not recommended for those who have limited economic means. Seniors enrolling in these plans should also be in good health; genetic predisposition toward certain conditions should also be taken into account before purchase.