High Deductible F Supplement and Hospital Indemnity
High Deductible F Supplement and Hospital Indemnity plans together can create a unique plans for beneficiaries. Clients can use the combination as a lower cost alternative to a Medicare supplement plan F, G or N. Take some time to review the strategy below
High Deductible F Supplement and Hospital Indemnity- High F Medicare Supplement
The first part of the combination is the high deductible F Medicare supplement. This strategy will work best in states that high prices on Medicare supplement plans F, G and N. NY and CT are great examples. Depending where you are in NY, the price for a plan F can have a price over $250 a month. A United American/Globe high deductible F plan is as low as $53 a month in NY. Given it has a $2,300 OOP, the math makes sense.
Plan F $250 a month for 12 months =’s $3,000.00
High F $53 a month for 12 months =’s $636.00 + $2,300 =’s $2,936.00
Even if the insured does reach the out of pocket max (95% of people do not) they will still pay less than the premium for plan F.
High Deductible F Supplement and Hospital Indemnity – where the indemnity comes in
The inpatient hospital deductible under Medicare Part A is one of the quickest ways someone can spend toward the $2,300 out of pocket costs. The hospital deductible is $1,364.00 If a hospital indemnity plan is purchased it can cover the cost of the hospital deductible. For a low premium this will take away the lump sum cost someone could incur for a hospital stay.
GTL is a good company to use for hospital indemnity plans. A 65 year old can get a benefit of $500 a day for 6 days (will recharge after being out of hospital for 60 days) for about $45 a month. The 6 day plan will also pay out for short stays or observation. CLICK HERE TO LEARN MORE ABOUT GTL CONTRACTING
High Deductible F Supplement and Hospital Indemnity – Final result
Combining the two plans has some major advantages. Because the plan is a supplement, this means the insured can go to any doctor who participates with original Medicare. They have an out of pocket max of $2,300. The hospital indemnity plan will pay them $500 per day of admission. Hospitals are going to bill a min of 2 days so the least they would get a check for is $1,000 but they could get up to $3,000 for a 6 day or more stay. The total premium would be $98 a month.