Choosing between Medicare Plan F vs G is a big decision. These Medicare Supplement plans offer extensive coverage, but “extensive” doesn’t mean identical. Even small differences can significantly impact your healthcare budget and peace of mind.
Navigating Medicare plans can feel overwhelming. Let’s simplify things by thoroughly analyzing Medicare Plan F vs G to see which plan best meets your needs.
Plan F and Plan G: A Side-by-Side Comparison
Medicare Plan F and Plan G stand out for their comprehensive coverage, but they each have nuances. The following table highlights some key differences between the plans.
| Feature | Plan F | Plan G |
|---|---|---|
| Part B Deductible Coverage | Yes | No |
| Monthly Premiums | Higher | Lower |
| Availability to New Medicare Beneficiaries | No | Yes |
Understanding Medicare Plan F
Considered the gold standard of Medicare Supplements before 2020, Plan F boasts the most comprehensive coverage. Imagine not dealing with copays, coinsurance, or deductibles for covered services. Plan F picks up the tab, leaving you only managing the monthly premium.
However, due to 2015 legislative changes, Plan F is no longer accessible to individuals who became eligible for Medicare on or after January 1, 2020. Those enrolled or eligible before this date can still keep or sign up for Plan F.
Understanding Medicare Plan G
Medicare Plan G has become incredibly popular, especially with new Medicare enrollees. It covers almost everything Plan F does, except for the Part B deductible, which is $240 in .
With Plan G, you pay the Part B deductible yourself. Once you cover the deductible, you’ll enjoy the peace of mind of little-to-no out-of-pocket expenses.
The Real Difference Between Plan F and Plan G
So now you know that Plan F and Plan G are nearly identical. With Plan F, the policy pays the annual Part B deductible, while it’s paid out-of-pocket with Plan G. That’s a minor difference.
So, what’s the real difference between Plan F and Plan G? If you do the math, the real difference is your total annualized cost.
Look at it this way. If you have a Plan F policy with a monthly premium of $168, your annualized cost is $2,016. And you pay that amount whether you see your doctor enough times to cover the Part B deductible.
However, if you have a Plan G policy with a $128 monthly premium, your annualized cost is $1,538 plus the Part B premium you pay out of pocket.
If you are weighing Medicare Plan F vs Plan G pros and cons, it isn’t hard to see that Plan G can save you money. That’s the difference between Medigap Plan F and G.
Coverage Breakdown: What Do Plans F and G Cover?
Here’s a closer look at the benefits these plans offer.
| Medicare Benefits | Plan F Coverage | Plan G Coverage |
|---|---|---|
| Part A Coinsurance and Hospital Costs (up to 365 additional days after Medicare benefits) | Covered | Covered |
| Part A Deductible | Covered | Covered |
| Part B Deductible | Covered | Not Covered |
| Part B Coinsurance or Copayments | Covered | Covered |
| Part B Excess Charges | Covered | Covered |
| Blood (first 3 pints) | Covered | Covered |
| Skilled Nursing Facility Coinsurance | Covered | Covered |
| Hospice Care Coinsurance or Copayments | Covered | Covered |
| Foreign Travel Emergency (up to plan limits) | Covered | Covered |
Cost Comparison
Since the only difference between a Medicare F vs G policy is a minor deductible, these supplemental plans are easy to compare. We pulled AARP Medicare Supplement Plan rates from a dozen cities for both F and G plans. The rates are for a 68-year-old, no-smoking woman. We used age 68 because that is the youngest age to qualify for a Plan F policy.
| City | Zip Code | Plan F | Plan G | Savings |
| Montgomery, Alabama | 36043 | $ 149.43 | $ 121.06 | $ 114.44 |
| Juneau, Alaska | 99801 | $ 179.22 | $ 136.51 | $ 286.52 |
| Phoenix, Arizona | 85001 | $ 158.12 | $ 122.59 | $ 200.36 |
| Little Rock, Arkansas | 72002 | $ 233.46 | $ 150.35 | $ 771.32 |
| Sacramento, California | 94203 | $ 204.04 | $ 159.14 | $ 312.80 |
| Denver, Colorado | 80014 | $ 199.66 | $ 147.27 | $ 402.68 |
| Hartford, Connecticut | 06101 | $ 282.50 | $ 210.25 | $ 641.00 |
| Dover, Delaware | 19901 | $ 152.33 | $ 125.49 | $ 96.08 |
| Tallahassee, Florida | 32301 | $ 229.99 | $ 190.57 | $ 247.04 |
| Atlanta, Georgia | 30253 | $ 227.50 | $ 139.25 | $ 833.00 |
| Honolulu, Hawaii | 96795 | $ 199.66 | $ 156.95 | $ 286.52 |
| Boise, Idaho | 83701 | $ 218.25 | $ 173.00 | $ 317.00 |
The cities we used represent a good balance of low-cost, moderate, and high-cost areas. Rates do not include any applicable household discounts. The annualized savings were calculated by taking the annual rate for both plans and subtracting the Part B deductible from the Plan G annualized rate.
The table shows that Medicare Plan G can offer significant savings depending on where you live. In our experience, it provides some savings in all areas. Comparing Medigap insurance companies by rate increases is the best way to predict savings over time.
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Plan F vs. Plan G: Crunching the Numbers
The decision often boils down to cost versus convenience. Below are several cost scenarios for you to compare Plan F vs G.
Scenario 1: Lower Monthly Premium, Potential Out-of-Pocket Costs
Imagine a Plan G premium that fits comfortably within your budget. This could be hundreds of dollars less annually compared to Plan F.
However, you are responsible for the $240 Part B deductible with Plan G. If you don’t expect many medical expenses in a year, you could end up with overall savings with Plan G.
Scenario 2: Higher Premium, First-Dollar Coverage
Plan F’s higher monthly premium might seem more attractive for individuals who frequently use medical services or have chronic health conditions. That first-dollar coverage can be reassuring, as you won’t worry about unexpected expenses.
Plan F covers costs such as doctor’s appointments, treatments, or hospital visits after Medicare pays its share.
Important Considerations Beyond Coverage
A Medicare Plan F vs. G comparison extends beyond premiums and benefits. Here are additional factors to consider.
Rate Increases
Over the years, Plan F has seen higher rate increases compared to Plan G. This trend is largely due to the comprehensive coverage and a higher number of individuals with chronic health conditions choosing Plan F.
While Plan G rates are also likely to rise, historically, the increases have been more modest.
Future Needs
As with any significant financial decision, project into the future when comparing Medigap Plan F vs G. Anticipate your future healthcare needs.
Plan F’s predictability might be worth the extra cost if you foresee frequent doctor visits or managing a chronic condition.
Should I Switch From Plan F to Plan G?
Medicare Plan F was once super popular, but it’s not available to everyone anymore. If you already have it, you might wonder if switching to Plan G is a good idea. Well, it depends.
Plan F covers all your Medicare Part A and Part B out-of-pocket costs. This benefit sounds great, but it also raises premiums.
Plan G is similar but doesn’t cover the Medicare Part B deductible. That means you’ll have some costs with Plan G that you wouldn’t have with Plan F, but your premiums will be lower.
So, is it worth switching? Think about these things:
- How’s your health? If you’re healthy and don’t go to the doctor much, Plan G’s lower premiums might save you money in the long run, even with the deductible.
- How much is Plan F costing you now? Compare your current Plan F premiums to Plan G quotes. You might be surprised how much you could save.
Talking to a Medicare advisor can help you compare plans. They can give you personalized advice based on your situation. Switching plans is a big decision, so getting expert help is smart.
FAQs about Medicare Plan F vs G
Here are some frequently asked questions about Medigap Plan F and Plan G:
Can I switch from Medicare Plan F to G?
Yes, you can switch from Medicare Plan F to G anytime during the year. However, you may have to undergo medical underwriting, and your premiums may differ.
Which plan offers better coverage for office visits?
Both Plan F and Plan G offer the same coverage for Medicare-approved office visits after you have met your Part B deductible. Plan F will cover the Part B deductible, while Plan G will not. But, when comparing Medigap F vs G, it is important to consider the overall cost, including the monthly premium difference.
What are excess charges, and am I covered?
Excess charges occur when a doctor, provider, or supplier doesn’t accept Medicare’s approved amount for a service and bills you for the difference. You are covered for excess charges With Medicare Plan F and Plan G.
Conclusion
Medicare Plan F and G are both robust plans, offering peace of mind with healthcare expenses. When you realize the difference between Medicare Plan F and G comes down to the Part B deductible, and the annualized cost of Plan F negates this cost, for most people, Plan G is the better option.