Today, we’re looking at Medicare Supplement Plan F versus Medicare Supplement Plan G. These are two of the most popular Medicare Supplement plans available. They are also two of the most comprehensive Medicare Supplements available.
If you are looking for comprehensive coverage in a Medicare Supplement plan, which of these two is better for you?
Confused about your Medicare coverage options? Watch our free video: How to Find the Best Medicare Coverage Without Paying More Than You Need To…
What happened to Medicare Supplement Plan F?
First, we need to talk about the Medicare Access and Chip Reauthorization Act of 2015. This law mandated that as of January 1st, 2020, insurers could no longer sell Medicare Supplements, also known as Medigap, policies that cover the Medicare Part B deductible to newly eligible Medicare beneficiaries.
Here’s what that means: if your Medicare Parts A and B effective dates are before January 1st, 2020, you can purchase a Medicare Supplement Plan F, or Plan C, or High Deductible Plan F. If your Medicare Parts A and B effective dates are January 1, 2020 or later, you cannot purchase a Medicare Supplement plan that covers the Medicare Part B annual deductible, so no Plan F, Plan C, or High Deductible Plan F for you.
What if you are eligible to purchase either F or G?
If both Plans F and G are possibilities for you, here are some things to consider: remember Medicare Supplement plans are standardized by law. The benefits for a lettered plan do not vary from company to company. A Plan G from Company 1 has exactly the same benefits as a Plan G from Company 2. The same goes for Plan F.
The only coverage difference between Plan F and Plan G is the Medicare Part B annual deductible. In 2021, this is $203. Plan F pays this for you. With Plan G, you pay the first $203 of outpatient medical care in the calendar year.
Does coverage of that $203 make Plan F worth purchasing?
To find out, we have to look at the premium costs of Plan F and Plan G for your age and your zip code.
I ran some quotes today with Illinois zip codes, and for both male and female rates, a Plan F costs around $40 per month more than a Plan G. That’s extra premium cost of over $480 per year just to cover the Medicare Part B deductible of $203.
There is absolutely no other benefit difference between Plan F and Plan G.
Future Cost Increases
We should also consider the future. The Plan F and C and High Deductible F blocks of business are closed to new enrollees. What does that do to rate increases?
Because no new, younger, generally healthier people are being added, that means that everyone with a Plan F is getting older and most are utilizing more medical services as they age.
Medicare Supplement rate increases are calculated based on how much the company pays out in medical claims during a calendar year versus how much premium money the insurance company takes in for a Medicare Supplement plan in a specific region. Because no new people are being added, the rates for Plan F policies will increase more than Plan G rates.
Should you buy a Plan F if you can?
If you are able to purchase a Plan F because your Medicare effective dates were before January 1st, 2020, you can, provided you can pass health underwriting with most companies, but I can’t in good conscience recommend that you do.
If you are looking for comprehensive coverage in a Medicare Supplement plan, the financial math, both now and in the future, favors Plan G.
Have a Medicare Supplement but not sure it’s the best plan for you? Call our office at 877-312-1414 or watch our free online video to learn how to find the best Medicare coverage for you.
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