Plan F and Plan G go head to head!

Choosing the right Medicare Supplement plan (also referred to as Medigap Plans) can often be a confusing process. Our goal today is to help our readers gain some insight into the two most popular Medicare Supplement Plans available, Plan F and Plan G.

Click Here To Watch Our Video Review: Plan F vs Plan G

The first and most important aspect to to selecting a Supplement plan is understanding the difference between the two most popular plans. Many people do not realize there is ONLY ONE coverage difference between Plans F and G: the Medicare Part B deductible of $183 which is not covered by Plan G.

Really that’s it! Same networks of doctors and hospitals and the same covered services.  Plan G simply has a $183 deductible that you pay out of pocket each year. 

Why do we recommend Plan G? 

Lets use a real life example: 

Shannon S.

Female

Single

Age 65
Dallas Texas

Zip Code: 75093

No Tobacco Use

Plan F monthly premium:$127 

Plan G monthly premium: $101



Choosing the right Medicare Supplement plan (also referred to as Medigap Plans) can often be a confusing process. Our goal today is to help our readers gain some insight into the two most popular Medicare Supplement Plans available, Plan F and Plan G.

Click Here To Watch Our Video Review: Plan F vs Plan G

The first and most important aspect to to selecting a Supplement plan is understanding the difference between the two most popular plans. Many people do not realize there is ONLY ONE coverage difference between Plans F and G: the Medicare Part B deductible of $183 which is not covered by Plan G.

Really that’s it! Same networks of doctors and hospitals and the same covered services.  Plan G simply has a $183 deductible that you pay out of pocket each year. 

Save Money This Year!

In this very common scenario Shannon would save $312 in premiums each year with Plan G! Even after paying her deductible she would still save $129 per year for the exact same coverage! 

So to turning the tables around in Shannon’s case if she were to select Supplement Plan F she would basically be paying here deductible up front (whether she used the doctor or not) PLUS a “Convenience Fee”, as I call it, of $129 each year. 

But believe it or not this is the least important of the three reasons I recommend Plan G to all of my Medicare Clients! 

Plan G typically has lower rate increases

Average Yearly Rate Increases: Plan F 4% vs Plan G 2%

The next important aspect to Plan G is the lower rate increases it provides over Plan F. Historically Plan G has lower rate increases year to year then Plan F. 

These lower rate increases are due to:

  • The deductible: When Medicare supplement insurance plans include a deductible people are a little less likely to use the doctor at the beginning of the year any may instead opt to take an over the counter time rather then paying their deductible at their doctors office. 

  • Fewer ways to get Plan G with no underwriting. The only way currently to get into Plan G with out answering health questions is during your Open Enrollment Period when you are new to Medicare for the first time. Beyond that everyone who wants to enroll in Plan G will be required to answer some health questions. This means that those people on Plan G have a higher chance of being healthy and using the doctor less which results in lower premiums overall. 

Medicare Changes 2020

Many People are not aware that Medicare Supplement Plan F will not longer be available to be sold to new Medicare beneficiaries as of January 1st 2020. This means those who have Plan F will be able to keep their coverage but each year that passes the age of those with Plan F will rise inevitably along with the rate increases. As the rates of Plan F begin to increase those who are healthy enough to qualify for Plan G will like switch at that point to lower their premiums which will only serve to drive plan F rates even higher. There is much debate when and how quickly Plan F rates will increase after 2020 but regardless I simply recommend to my clients to avoid that debate entirely and enroll in Plan G coverage.

So why do we recommend Plan G?

Simply put a Medicare Supplement Plan G will save you money this year, provide you with historically lower rate increases next year, and will help you avoid any large rate increases that may come for plan F after 2020. 

Resources

Chet Kuhn


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