Medigap Monday: Plan G is a Greater Value than Plan F

The Medicare Supplement Plan G is exactly the same as the Medicare Supplement Plan F in all but one thing. The Medicare Supplement Plan F pays your Medicare Part B annual deductible and the Medicare Supplement Plan G does not. After that deductible is met, the Medicare Supplement Plan G covers exactly like the Medicare Supplement Plan F. There are three main reasons why the Medicare Supplement Plan G is a greater value than Medicare Supplement Plan F.

  1. Simple Math. The Medicare Supplement Plan F is normally $300 to $800 more expensive annually than the Medicare Supplement Plan G. If the only difference between the two plans is Medicare’s Part B annual deductible of $183.00, paying an insurance company an additional $300-$800 a year for them to only pay $183.00 on your behalf is a waste of money.
  2. Medicare Supplement Plan F is the guaranteed issue plan. This means that there are certain situations that the Medicare Supplement Plan F must accept unhealthy people. Whereas the Medicare Supplement Plan G, unless you purchase it when you first turn 65 or are new to Medicare Part B, there is no exception and you must medically qualify. Because of this, we have seen a much more stable increase with the Medicare Supplement Plan G over the Medicare Supplement Plan F. We have seen a double-digit rate increase percentage wise for the Medicare Supplement Plan F compared to single-digit increase for Medicare Supplement Plan G.
  3. Medicare Supplement Plan F is being discontinued in the year 2020. If you have the Medicare Supplement Plan F you will be grandfathered into the plan and if you turn 65 before January 1st 2020 you can purchase a Medicare Supplement Plan F in the future. However, the Medicare Supplement Plan F is going to be an aging block. Statistically, anyone ages 65 thru 67 is going to have less claims than anyone ages 75 thru 77. By the year 2030 the youngest person in the Medicare Supplement Plan F is going to be 75 years old and filing more claims, whereas the Medicare Supplement Plan G is still going to accept those people turning 65. The Medicare Supplement Plan G is going to be a much more stable plan.