How to compare Medicare Supplement Plan G vs Plan F?
The latest published Gorman Health Group Report Market Trends: Medicare Supplement confirmed that Medigap Plan F is the most popular of all plans. In 2015, nearly 6.5 million people are enrolled in Plan F, and its market share is 55%. Although Medicare Supplement Plan G (Medigap Plan G) market share (7.58%) is much lower than Plan F, Plan G one of the fastest growing Medigap plans. The recent Plan G enrollment is much higher than Plan F. What made Plan G so appealing recently?
Table 1. How to compare Medicare Supplement Plan G vs Plan F vs Plan N
Medicare Supplement Plan G vs Plan F – When Plan G is preferable to Plan F
The historical popularity of Plan F is easy to explain. It is the only plan in which ALL Medicare ‘gaps’ are covered. It is very convenient: once you’ve paid the premium, there is no need to be concerned about any out-of-pocket expenses.
Medicare Supplement Plan G, also known as Medigap Plan G, is VERY SIMILAR to Plan F with one exception – it does not cover the annual Medicare Part B Deductible. For 2019 the deductible is $185, but this deductible is subject to change annually. Just like all Medigap plans, Plan G is standardized, and its benefits are the same for all insurance companies offering the plan. Most vendors offer Medigap Plan G.
Because of the extra benefit, the Plan’s F premium is always higher than the premium for Medicare Supplement Plan G. The premiums of the plans may differ significantly among different companies. Based exclusively on premium, if the difference between plan F and G premiums exceeds the Part B deductible, it makes sense to go with Plan G. For 2019, the magic number is $185 per year or $15.50 per month.
Lower Annual Premium Increase
Also, annual premium increases of Medigap Plan F are higher than for Medigap Plan G. One of the reasons is that Plan G is NOT on the list of Medigap plans offered under Guaranteed Issue Rights. Therefore, people with Medicare Supplement Plan G, in general, healthier than people enrolled in Plan F.
Medicare Supplement Changes – 2020
As of 2020, Medicare Supplement plans will no longer sell NEW Medigap Plan F. Only those people who already have it can be grandfathered in to keep it. It will make Medicare Supplement Plan G even more attractive choice.
Despite all of the above, for some people, the convenience of Plan F will always be the deciding factor.
US Government Reading
- How to Compare Medigap Policies?
- Choosing a Medigap Policy: A Guide to Health Insurance for People with Medicare
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