There are currently 10 different Medigap plans available, offered by several different insurance companies. Choosing the right plan to fit your needs can become very overwhelming, particularly if you are new to Medicare. If you have done even a little bit of research you may be asking yourself “Is Medigap plan F the best?”
Well for some people in it might be however keep reading to learn how plan F might actually end up costing you more money.
The Basics of Medigap Plan F
By now you have probably heard a great deal about plan F. Perhaps many of your friends have this plan and have told you to get it. Many different agents will recommend plan F to everybody claiming that it has the best coverage and therefore must be the best plan for everyone. Well like most things in life, what might be considered the best for one person may end up being a bad choice for another. Medigap plans are no different.
Because plan F pays 100% of the gaps in Medicare part a and part B, on the surface it seems very attractive. And in reality it is outstanding coverage but you will pay more to have a plan F. What if there was a plan that was just like plan F, except only had one small deductible? What if this plan could save you hundreds of dollars per month just buy you paying this small deductible instead of the plan F pay it for you?
To determine if plan F (or any plan for that matter) is the best for you and your own current situation, you need to at least compare it to something else. That’s something else, would be a Medigap plan G.
Plan F vs. Plan G
You’ve just learned that the that the only difference between plan F and plan G is who pays a small deductible. This deductible is the Medicare part B annual deductible and it is a $147 per year. Before Medicare will pay any of your medical bills someone must pay this deductible. With Medigap plan F the plan pays the deductible for you. What is really happening however, is the insurance company is paying the deductible for you with the money you gave them and higher monthly premiums.
Plan G has lower monthly premiums than plan F and you are responsible for paying the $147 deductible out of pocket yourself. So is Medigap plan F the best? Well only if the difference in premiums between plan F and plan G is less than $147. However in nearly every case the extra amount you will pay for plan F is almost always more than $147 per year. In many cases a can be substantially more, particularly if you have had a plan F fryer and you switch to a different companies plan G.
For someone who is on a limited income and every dollar counts, plan G are very well may be the best option. If paying the deductible yourself saves $120 per year that is a difference of $12.00 per month which can go-to for its some other bill.
Yearly Rate Increases
Historically plan G has also had lower rate increases than plan F. If this is because plan F is offered guaranteed issue to anyone who is retiring and coming off employer group health who qualifies. These people are not eligible to be guaranteed issue into a plan G. If guaranteed issue means that no medical underwriting is performed by the insurance carrier. This results in higher medical claims due to anyone be eligible to obtain coverage with a plan F. Higher claims equals higher rate increases each year.
Shopping The Plans
Regardless of which plan you decide to go with it is crucial that you obtain the rates from all of the different carriers. This is because every company has the exact same plan G and every other plan. Their prices can vary widely an often do. Choosing the first company that comes along that just because they have a big name could end up costing you a great deal of money.
Is Medigap plan F the best? Enter your zip code below to compare plans and rates from the top carriers and find out!