For many years now, the Plan F Medicare Supplement has been the top selling plan. Because of the Medicare Access and CHIP Reauthorization Act of 2015, the Plan F will no longer be available for sale for people who turn 65 in 2020 and thereafter. People who have a Plan F in force at that time can keep their current plan or switch to another Plan F with a different company, but they may not want to. Here’s why: Introduction to new Medigap Plan G
As history has shown with other plans that have been eliminated in the past, Medigap enrollees can likely expect their premiums to rise significantly if younger and healthier seniors are prevented from enrolling in their plan. That is what exactly what happened when Medicare did away with the Plan J in 2010, and many experts expect the same result with the Plan F. Introduction to Medigap Plan G
Plans F and G are identical with one exception – Plan G does not cover the annual Part B deductible (see the Medicare supplement plan chart on our comparison page). Part B of Medicare is the part that is paid to physicians or outpatient facilities for your care. So with a Plan G, you would be responsible for the annual Part B deductible – which is $183 in 2017.
Today, more and more seniors are finding that they can save on out of pocket costs by choosing Plan G instead of the Plan F. In most areas of the country, the difference in premium between a Plan F and Plan G is $280-360 per year. There is no need to pay the insurance company up to $360 more for the only additional benefit of them paying the $183 deductible for you. If you will pay that deductible yourself, you can pocket the difference. The Part B deductible will get paid to Medicare whether you pay directly with a Plan G or by letting the insurance company pay it through a Plan F with a convenience fee tacked on.
There are many theories as to why there is a big difference. Many experts attribute it to the fact that Plan G does not accept Guaranteed Issue enrollees. These are typically enrollees who are leaving an employer plan to go on Medicare. Plan F policies must accept all Guaranteed Issue enrollees without any underwriting, regardless of their current health.
Another school of thought says that many people will be more apt to seek treatment for minor issues as they have no deductibles or co-pays under the Plan F for Part B services. This is what is referred to as “first-dollar coverage.”
Either way, the better option is to go ahead and look at the Plan G (or even Plan N). The good news is that Plan G is already a better value today as I demonstrated above. Making a change could actually be beneficial now instead of waiting to see what possibly happens to Plan F premiums down the road. IIntroduction to new Medigap Plan GG
Keith Murray is an independent agent and the founder of ExpertMedicare.com and Integrity Senior Solutions Inc. Keith has over 21 years of experience working with Seniors on their Medicare insurance needs. He can be reached at 1-888-228-6119 or through the website. Introduction to new Medigap Plan G
Introduction to new Medigap Plan G Introduction to new Medigap Plan G Introduction to new Medigap Plan G Introduction to new Medigap Plan G Introduction to new Medigap Plan G Introduction to new Medigap Plan G Introduction to new Medigap Plan G
As a co-owner of Senior.com, Kimberly Johnson is passionate about providing Seniors with the resources and products to live well. Kimberly is a seasoned caregiver to her family and breast cancer survivor. Her father battled ALS, Lou Gehrig’s disease, for 13 months before passing. Today Kimberly lives in Southern California near her 102 year old grandmother, widowed mother, a mentally disabled sister and second sister who is also a breast cancer survivor. She is happily married to her husband of 22 years and they have 3 children.View All Articles