Medicare Supplement Plan G vs Plan F
Medicare supplement plan G vs plan F is a very popular topic. Most folks who are new to Medicare or already on Medicare see plan F everywhere. The reason for this is because plan F is an easy sell for the agent or company. Simply put, Medicare supplement plan F covers everything, OK? sign here!
Plan F is the most expensive supplement you can buy. The companies make more money selling plan F, so do the agents. Not many agents will take the time to explain the benefits of Medicare supplement plan G vs plan F.
The Difference In Coverage
The ONLY difference between plan G and plan F is under Medicare supplement plan G, the Medicare part B deductible is not covered. See the chart below to get a visual of my explanation. The Medicare part B deductible is an annual deductible. This means the most you can pay out of pocket under plan G is $166 for the year. This, of course, assumes you are going to a provider that accepts Medicare.
Medicare supplement plan G is accepted anywhere in the country that takes Medicare. It does not matter what company you have your Plan G with, the doctor or hospital CANNOT refuse you. This is because ALL Medicare supplement plans are standardized; meaning the benefits are regulated by the U.S. government. In any given state there are over 40 companies offering Plan G. The ONLY difference between each company is the rate they charge you for the plan.
Rate Increase History; Plan G vs Plan F
Historically plan F increases at a higher percentage than plan G. There are a few reasons for this such as:
- Folks overusing their Plan F because they have “full coverage”
- Plan F allows people losing group coverage who missed out on their Medigap open enrollment to enroll without any health questions.
Both of these reasons cause more claims to the insurance companies, thus causing more rate increases. Plan G does not have guarantee issue scenarios so in general, there are more healthy people on plan G than plan F.
The Future Of Plan F
Another major reason plan G is a better option than plan F is because plan F will be discontinued in 2020. Congress has decided to eliminate plan F in 2020 because they think it will save Medicare money. The thought process is; folks overuse their Medicare benefits with plan F because there are no out-of-pocket expenses.
Those who have plan F can remain on their plan indefinitely. The insurance companies will not be allowed to sell plan F to new clients. This will causes problems. When a health insurance company no longer takes on younger, healthy clients there is no one offset the aging folks on the plan. What we will see is high rate increases for the people who have decided to remain on plan F. Just another reason to go with plan G.
Compare Rates Between Plan F and Plan G
It is important to do all your research and gather rates from all the insurance companies in your state. Without the help of an independent broker this would be a very time consuming task. Luckily, we specialize in helping folks with their Medigap needs. We are contracted with all the top rated carriers in each state and can show you a comparison of all the carriers so you can choose what plan makes the most sense for you.
To compare rates from all the top carriers in your area call us at 800-208-4974 or use our online quote comparison tool.
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