Medicare Supplement Plan F or Plan G?

Plan F or Plan G?

If you’re of “Medicare Age” then you’ve probably heard the debate or maybe even participated in it.  Which Medicare Supplement is better?  Plan F or Plan G?  For years, the answer has been easy, but we’re starting to see a shift.  Let’s start by looking at the differences between these two plans.

Differences between “F” and “G”

  • Medicare Part B Deductible ($183 in 2017)
    • Plan F – The plan pays the deductible
    • Plan G – You pay the deductible

That’s it!

Conventional wisdom would suggest that because Plan F is the more comprehensive plan that it would be “better”, but “better” is certainly relative.  Let’s take a closer look.

For example, John is 66 and wants to enroll in a Medicare Supplement.  He is interested in F and G only – which should be buy?

  • Plan F = $135 a month (no deductible)
  • Plan G = 105 a month ($183 deductible)

Plan G would save him $30 a month or $360 a year!  Once John accounts for the deductible, he has true savings of $177 a year (or about $15 a month).  By enrolling in G, John gets the “best bang for his buck” and doesn’t sacrifice on coverage.

Clients often ask us if this is the case in every state and we say that generally, Plan G is going to be a better buy than Plan F.  If the savings are less than $15 from F to G, then you can make a stronger case for Plan F.

That’s not all, we have even more reasons to recommend Medicare supplement Plan G over Plan F.  Rate increases on Plan F are more aggressive.  Why? It’s simple, really.  There are significantly more claims which always translate to higher rate increases.  Policy holders have better behavior on Plan G because they are thinking about the deductible and how it interacts with their budget.  If you have Plan F, why wouldn’t you use it?  There is no reason not to, and that’s the attitude of most Plan F policyholders.

One more reason to buy Plan G: For the reasons cited above, Plan F will be discontinued as of January 1, 2020 as part of the Medicare Access and CHIP Reauthorization.  If you’ve already purchased Plan F, you’ll have the option to keep your plan, but we believe rate increases on Plan F will be even more aggressive as no new 65 year olds are paying in to the system.

So what does this mean for you?  If you’re aging into Medicare, take a close look at Plan G and see if it makes financial sense in your market.  You’re likely to save some money.  If you’re already on Plan F, give us a call and let us talk about the process to get you switched over.  There are very few hurdles, and it can be done anytime.

At Plan Medigap, we specialize in the Medicare Supplement and we’ve helped thousands of seniors find the right coverage at the lowest price.  Give us a call or pay us a visit and “Let’s Plan Together”.  Receive a free quote here: http://www.planmedigap.com/medicare-supplement-quote/

 

 

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