Should I Keep Plan F?

The Medicare Supplement Plan F is being discontinued starting January 1st 2020 but anyone that has Medicare Supplement Plan F will be able to keep it. If you turn 65 years old before January 1st, 2020, you’ll always be able to purchase the Medicare Supplement Plan F. If you turn 65 after January 1st 2020 you will not be able to purchase the Medicare Supplement Plan F.

Now, if you have the Medicare Supplement Plan F you can keep it but I do not recommend that you do so and here’s why: with no one new coming into the Medicare Supplement Plan F, it’s going to become and aging block of business meaning that only older individuals past the age of 65 will be able to get it. None of the new enrollees to Medicare can join the plan. Statistically speaking, the older people get, the more claims they are likely to have. This results in much higher premiums for the Medicare Supplement Plan F.

If you have the Plan F now, you should really consider shopping different plans because you do have to medically qualify to switch plans. The Medicare Supplement Plan G is a much better option and value than the Medicare Supplement Plan F. Here is why:

The Medicare Supplement Plan G is almost exactly the same and the Medicare Supplement Plan F, the only difference is that the Medicare Supplement Plan G doesn’t pay Medicare’s Part B annual deductible of $185.00. After you meet that deductible, you have no medical bills, everything is covered just like Medicare Supplement Plan F. There are three main reasons Medicare Supplement Plan G is a better choice than Medicare Supplement Plan F.

  1. Simple Math: Medicare Supplement Plan F costs $600 more per year in premium than Medicare Supplement Plan G, so why pay Medicare Supplement plan F $600 more when the only difference in benefits is that Medicare Supplement Plan G has a small $185 deductible? That is just giving more money to these big insurance Carriers for no reason.
  2. Rate Stability: No one that turns 65 after 01/01/2020 will be able to purchase the Medicare Supplement Plan F. This will cause the Medicare Supplement Plan F premiums to increase quickly.
  3. The Part B annual deductible will likely continue to increase. This will also cause the Medicare Supplement Plan F premiums to increase at a higher rate than the Medicare Supplement Plan G.