What Are High Deductible Medigap Policies?
High deductible Medigap policies are just like car insurance, the higher the deductible the lower the premium. In the case of Medigap coverage, the Plan F and J are the high deductible Medicare Supplement policies. The new changes that occurred in June 2010 means they won’t take effect until you have met your annual out of pocket deductible of $2,000. These high deductible Medigap plans have a lower premium than the regular Plan N and J. Since June 2010, you can’t buy Plan J but if you already were covered by it, you can still keep it as long as you make the premiums.
The lower premiums mean a higher deductible. If you get sick and you run up a large medical bill, can your budget handle paying the higher deductible? You may be quite healthy now but as we all know, our medical conditions can change overnight even if we live a healthy lifestyle. As we get older, our health may not be as good as it is now. Living on a fix income, our out of pockets expenses will definitely be higher with Medigap Plan N and Plan J.
If you are already enrolled in a Medigap Plan J that includes limited drug coverage prior to January 1st, 2006, you are not eligible to enroll in the Medicare drug benefit plan. If you do decide to enroll in a Medicare drug plan, your will lose the drug portion of Plan J. This will lower the premium of Plan J but it also reduces your coverage. The Medicare drug benefit is considered a much better plan than Medigap Plan J. You also have holding over your head a potential penalty if you don’t enroll in the Medicare drug plan when you become eligible.