Is Medigap Plan G a better deal than Plan F? That is a common question for many people turning 65 or on the market for Medigap coverage. It’s certainly a question worth considering, when you take into account that Plan G is often $20-40/month less than Plan F.
First and foremost, it’s important to understand the Medigap plans are standardized. Medigap plans from all companies go by the standardized Medigap coverage chart. That is, a Plan G with one company is the exact same as a Plan G with another company.
There are really three reasons why it is advisable to, at the least, consider Plan G:
1) The first reason is simply because it is a better “deal” in most cases. The ONLY difference in Plan F and Plan G is the coverage of the Medicare Part B doctor’s office/outpatient deductible. For 2017, this deductible is $183/year. The premium difference between ‘F’ and ‘G’ is, almost always, greater than that $183/year amount. Sometimes, it is as much as $300-400 annually difference, which would represent a couple hundred dollars a year savings to you.
2) The second, and less obvious, reason to consider Medigap Plan G, is that it is historically more rate-stable over time. Plan F is offered in certain “guaranteed issue” situations, where Plan G is not. Some of these situations include: losing employer coverage, losing Advantage plan coverage, moving out of your Advantage plan’s service area, etc. If you have significant pre-existing conditions and fall into one of the aforementioned situations (or one of several others), you can get a Plan F on a “guaranteed issue” basis but you would have to “qualify medically” to get a Medigap Plan G. What this means is that, over time, the population on Plan G is healthier than the population on Plan F, which leads to fewer/smaller rate increases down the road.
3) The third and final reason to consider Medigap Plan G is that recent legislation has impacted the “first-dollar” coverage plans (Plan F and Plan C) but NOT Plan G. While it remains to be seen if these plans will be discontinued entirely or simply charged a surcharge, Plan G has not been impacted by these changes. So moving forward, Plan G appears to be the more viable option long-term.
If you have any questions about these factors or simply would like to get a Medicare Supplement comparison of the plans for your age and zip code, you can contact us at 877.506.3378 or request a Medicare Supplement comparison by email.