Here is how you compare Medigap Plan F to Plan G.
1. Calculate your Plan F’s total yearly premium.
2. Calculate and compare the annual premium of a Plan G to the Plan F.
3. Is your Plan F more than $147 than the Plan G?
We frequently recommend Plan G to our clients due to its overall savings and benefits.
Why Plan G? Doesn’t everyone else gets Plan F?
It’s simple. Plan G saves you money and Plan F costs you more money for basically the same coverage. Most people get Plan F because their agent didn’t take the time to teach how other plans work.
Most agents will quickly tell you that everyone gets Plan F because it “pays for everything.” However, Plan G can be a much better value.
You’re probably wondering what’s the catch? Good!
There is only 1 difference between the plans.
I want you to take a look at the comparison chart below. You will see that Plan G does not pay the Part B deductible.
Medicare Supplement Plan F covers the Part B deductible, but you’re still paying it. It’s just added into your premium. Medicare Supplement Plan G doesn’t have the deductible incorporated into your premium.
That’s it! $147 is the difference between the higher priced Medigap Plan F and Medigap Plan G.
When you choose a Plan F, the insurance company has to pay the Part B deductible and that is factored in the premium.
That’s the difference of potentially saving HUNDREDS of dollars off your yearly premium.
Please remember that you are still paying for your Part B deductible regardless if it’s Plan F or Plan G.
However, you are paying extra premium dollars for a Plan F in order for the insurance company to take care of the deductible instead of you.
Why is Plan F so much more than Plan G?
There are several reasons. You see, it costs money for the insurance company to manage, handle, and pay the Part B deductible payment for you. They have to hire extra people to manage this.
This is factored into your premium dollar. You are paying for this so called “convenience” with Plan F.
Plan F can also be more susceptible to rate increases. Plan F typically has more unhealthy people enrolled which equates to more claims. More claims means higher rates.
How about a quick example of how you can save?
Sometimes our clients like to see a comparison example. It gets to be a bit confusing with all of these plan letters and terminology.
Here is an example.
Mrs. Smith is a 70 year old woman who does not smoke. Mrs. Smith is currently on a Plan F and pays $1,620 a year in premiums.
Let’s compare a Plan F and a Plan G and calculate the savings.
1. Plan F with Company ABC charges a yearly premium of $1,620.
2. Plan G with Company XYZ charges a yearly premium of $1,290. Now add the $147 Part B deductible which = $1,437
Remember that the only difference with Plan G is that Mrs. Smith has to write the check for the Medicare Part B deductible ($147) instead of her insurance company incorporating it into the premium.
In this example, Mrs. Smith is simply spending too much money on Plan F.
This is because the yearly premium of Medigap Plan G plus the Part B deductible ($1,290 + $147 = $1,437) is less than the Plan F annual premium ($1,620).
Mrs. Smith is saving $183 a year simply because she chose to go with a Plan G.
She saves simply by writing a check for her Part B deductible.
Here’s another way to look at it. Mrs. Smith’s Plan F is coster her $183 more because someone in the insurance office writes the check. Is it worth $183 to have the insurance company write the check?
Of course not.
Plan F is the most popular plan, however it is also the most expensive.
Plan F is the most comprehensive Medicare supplement plan. Plan F is not necessarily the best value of your premium dollar.
As always, our goal is to show you how to save significant amounts of money by choosing the best plan for your premium dollar. If you have any questions about Medigap Plan F or Plan G, please contact me.
Let me help you find the same type of savings and put that money back into your bank account instead of the insurance company’s!