People are leaving Medicare Plan F and enrolling in Plan G to save money. Medicare Plan F has much higher premiums and rate increases than Plan G does, and no extra value for those higher premiums.
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Medicare Plan F
So right out of the gate, let’s get down to some facts when it comes to Medicare Supplement Insurance. Some of the most important things you can know.
Number one, work with an independent agency!
Now, why is that important, instead of just going direct to an insurance carrier?
Well, an independent agency, like us here at Medisupps.com, for example, shops the rates out of all the top companies.
This is incredibly important!
Because Medicare supplement plans are what is called “standardized”.
That means if it’s a Medicare Supplement Plan G or Plan N, or Plan F, every single carrier has the same coverage.
Therefore, you want somebody on your side who shops them all, because they all have different rates!
Another important factor to consider is when it comes to Medicare Plan F vs Plan G, and choosing the right plan.
People who are new to Medicare and just turning 65 cannot get Plan F. In that case your best options will likely be Plan G or Plan N.
However, I know there are a lot of you out there who still have Medicare Plan F.
And this article is mostly made for you. I want to show you the differences between Medicare Plan F vs Plan G and know the benefits of each. That way you really decide which one’s going to be best for you.
But I also want to show you why being with Plan F is not the best decision financially.
Now, let’s cover the benefits of each of them, compare the two, and then you can decide.
Medicare Plan G
Medicare supplies Plan F, as you know, if you’ve had it for years and you’ve been getting 100% coverage of the gaps in Medicare, you haven’t been getting any Medicare bills, and that’s great.
However, you’re paying a pretty steep price for that.
Now, you’re paying a larger premium for Medicare as well as your supplement plan to pay all your bills.
With the supplement plan and your Plan F specifically, that is paying what’s called the annual Part B deductible for you.
That’s a small deductible that you must pay or you’re responsible for prior to Medicare paying 80% of your medical bills.
Now, why is that important?
Well, on Medicare Plan G, you pay that deductible yourself out of pocket.
Again, so Plan F pays it for you. Plan G, you pay it out of pocket yourself.
Now, I’m going to try and break this down as easily as possible.
But the math is really simple. We’re in the middle of 2023, coming on the tail end. And this will apply to every year moving forward.
The Medicare Part B deductible currently is $226. Now, that’s all once per year deductible.
After that, with your Plan G, you pay, and you get 100% coverage. Plan F, the plan is giving you that $203 benefit built into it.
So again, with Plan G, you pay the deductible yourself.
With Plan F, it’s paid. In 2023, the benefit is worth $226.
You are probably paying $300 to $400 extra a year to get $226 benefits.
Now, I understand the luxury of getting all of your bills paid 100%. It’s pretty sweet. However, is the math worth it for you? Is Medicare Plan G better than Plan F
Medicare Plan F Cost
Now I realize everyone has a different budget. That’s why I wanted to write this article, to give you options.
Some people say, “Yes, Russell, I know it’s more money but I can afford it. I hate getting bills.”
What you could do in that case is allow us to shop the rates if you do want to keep it, because other companies probably have a lower premium on Plan F.
However, for you folks out there where every dollar counts and you are looking for ways to save money, Medicare Plan F is going to be the most expensive route.
One important thing to consider is Medicare Plan F now has a higher rate increase because the plan is closed. Yes, you got to keep it, however, it’s a closed block of business, which means a higher rate increase each year.
Now, the reason why Plan F is going to continue to experience higher rate increases is pretty simple…
Rate increases are determined on a mathematical formula based on how many new premiums are coming into the group that you’re in, versus how many claims are being paid out of the group.
Plan F, being no longer available, does not have this new-premiums side of the equation anymore. Therefore, it just has claims being paid out.
And because a certain percentage of every dollar collected from the insurance carriers has to go towards paying claims, the rates have to go up to meet that amount. Simple math.
Medicare Plan G – How to Save Money
That’s why I encourage you to highly, highly take into consideration Plan G.
With Plan G your only out-of-pocket expense beyond your monthly premium is that you must pay the annual Part B deductible each year.
That is a calendar year deductible as well, so it resets in January.
Once that deductible is paid, you will have 100% coverage from Plan G, just like your Plan F.
And all you have to do is write the check yourself.
It takes five minutes. The first $226 of your medical bills this year for 2023.
However, if you’re in the future right now, and you’re reading this from 2024 or beyond, the rules for Plan G are the same.
Pay the annual deductible yourself, then get 100% coverage for the rest of the year. Pretty awesome!
Medicare Supplement Plan N
Now, there is another great option when it comes to Medicare supplement plans, and that’s Medicare Plan N. It’s very similar to G where you still pay that annual deductible.
But with Plan N, you could have some additional out-of-pocket expenses after that.
On Plan N your expenses could be:
- Up to a $20 co-pay per doctor’s visit after you pay the part B deductible
- A $50 co-pay if you visit the ER and you’re not admitted
- Does not cover Part B excess charge
Get Quotes for Plan G
So if you’re ready to take it to the next level and save some serious money on your Medicare supplement insurance, then by all means give us a call today at 1-888-891-0229.
We’ll show you the difference in premiums for Medicare Plan F vs G and just how much you can save.
I believe it will be substantial. And hey, the phone call’s free!
Or click below to get quotes online in minutes!