Is Medicare Plan G Better than Plan F?
If you’re wondering which Medicare supplement is the best, Plan F vs. Plan G, you’re in the right place. We’re going to answer that question as thoroughly as possible. In fact, we’re going to come at it from both directions, because both of these stellar Medigap plans are the best options you can get in different situations.
Let’s duke it out and see which plan comes out on top.
What is the difference between Medicare Plan F and G?
For decades, Medicare Supplement Plan FMedicare Supplement Plan F is the most comprehensive Medicare supplement plan available. This plan covers all Original Medicare deductibles, coinsurance, and copayments, leaving you with no out-of-pocket costs on all Medicare-approved services. has been the best supplemental Medicare insurance that money can buy. Simply put, it covers all of the gaps in Original MedicareOriginal Medicare is private fee-for-service health insurance for people on Medicare. It has two parts. Part A is hospital coverage. Part B is medical coverage..
As you’re probably aware, Original Medicare — that’s your Medicare Part AMedicare Part A is hospital coverage for Medicare beneficiaries. It covers inpatient care in hospitals and skilled nursing facilities. It also covers limited home healthcare services and hospice care. and Medicare Part BMedicare Part B is medical coverage for people with Original Medicare benefits. It covers doctor visits, preventative care, tests, durable medical equipment, and supplies. Medicare Part B pays 80 percent of most medically necessary healthcare services. coverage — has deductiblesA deductible is an amount a beneficiary must pay for their health care expenses before the health insurance policy begins to pay its share., coinsuranceCoinsurance is a percentage of the total you are required to pay for a medical service. , and copaymentsA copayment, also known as a copay, is a set dollar amount you are required to pay for a medical service. that you pay out-of-pocket. Here’s a quick overview of these out-of-pocket costsOut-of-Pocket Costs for Medicare are the remaining costs that are not covered by the beneficiary's health insurance plan. These costs can come from the beneficiary's monthly premiums, deductibles, coinsurance, and copayments.:
- Medicare Part A Coinsurance & Hospital Costs
- Medicare Part A Skilled Nursing Facility Coinsurance
- Medicare Part A Deductible
- Medicare Part A HospiceHospice is a special way of caring for people who are terminally ill. Hospice care involves a team-oriented approach that addresses the medical, physical, social, emotional, and spiritual needs of the patient. Care Coinsurance or Copayment
- Medicare Part B Deductible (annual)
- Medicare Part B Coinsurance or Copayment
- Medicare Part B Excess ChargesA Medicare Part B excess charge is the difference between a health care provider’s actual charge and Medicare’s approved amount for payment.
- Blood (first 3 pints)
- Foreign Travel Emergency
Only Medigap Plan F covers all of these costs for you. This is why so many people, both insurance professionals, and policyholders alike, think Plan F is the best.
What is Medicare Plan G?
A Medicare Supplement Plan GIf you're turning age 65 this year, Medicare Supplement Plan G is the most comprehensive Medicare supplement you can buy. It's also the most popular. You might be thinking that Medicare Supplement Plan F is... policy pays everything in the list above except item #5, the annual Medicare Part B deductible. With Medicare Plan G, you pay this $198 costs (2020 rate) out-of-pocket the first time you see your doctor each year. Once it’s paid, then Plan G acts just like a Plan F policy and covers all Medicare-approved costs. But here’s the thing, for many people Plan G is actually cheaper overall. That’s what makes it better.
Plan G Medicare Rates are Lower
You see, most savvy seniors have already figured out that Plan G Medicare premiumsA premium is an amount that an insurance policyholder must pay for coverage. Premiums are typically paid on a monthly basis. In the federal Medicare program, there are four different types of premiums. are lower than Plan F, and that cost difference adds up to more than the Part B deductible (in most areas). So, for these seniors, a Medigap Plan G policy is better than Plan F because they save money.
Here’s another thing that savvy seniors have figured out. On the surface, it may appear that all you’re saving is a few dollars over the amount of the Part B deductible, but it can add up to much, much more. You see, many healthy people without chronic health conditions that require regular doctor visits go years with nothing more than an annual checkup. Because preventative care visits are free (covered 100% by Medicare), many healthy seniors never pay the annual Part B deductible, so their Plan G policy keeps adding up the savings for them. That’s what makes Medicare Plan G the best for these people.
Not Everyone Qualifies for Medicare Plan F
Are you aware that Medicare Plan F (sometimes people call it Medicare Part F, but the actual name is Medigap Plan F) isn’t available to people who turned age 65 after 31 December 2019? It’s unfortunate but true. Congress put the kibosh on plans that cover the Part B deductible. I guess they want us to have more skin in the game, so to speak and think twice about seeing our doctor for minor things.
Going forward, for those of us turning age 65 after 2019, Medicare SupplementMedicare Supplements are additional insurance policies that Medicare beneficiaries can purchase to cover the gaps in their Original Medicare (Medicare Part A and Medicare Part B) health insurance coverage. Plan G is better than Plan F because it’s the most coverage the government will let us get. But, don’t delay or you might not get a Plan G, either.
Medicare Plan G Guaranteed Issue
Hopefully, you are aware that you have a one-time open enrollment periodDuring the Medicare Open Enrollment Period, Medicare Advantage and Part D plan members can change, switch, or drop a plan they chose during the Annual Election Period. OEP starts on January 1 and ends on March 31. when you can buy a Medicare Plan G policy and not be turned down because of pre-existing health conditions. Most people only get this opportunity once.
Your personal open enrollmentIn health insurance, open enrollment is a period during which a person may enroll in or change their selection of health plan benefits. Health plan enrollment is ordinarily subject to restrictions. window starts when you first enroll in Medicare Part B (the effective date of your coverage) and lasts for six months. Once this window of time has passed, you no longer have a guaranteed-issue rightGuaranteed-issue is a right granted to Medicare beneficiaries and applies to Medicare Supplement insurance (aka, Medigap plans). All states and the federal government enforce this essential right, which protects Medicare beneficiaries from medical underwriting., and insurance companies can ask you health questions. What that means is that an insurance company can and will put you through their medical underwriting process. And, if they don’t like what they see, they can turn you down, ask you to accept less coverage, or not cover your condition for a period of time.
If you want a Plan G policy, because you realize it is the best coverage you can get, don’t miss your chance to get it without having to go through medical underwriting. If your personal open enrollment period has passed, and you want Medigap Plan G coverage, you still have the chance to get it, but you must answer the medical questions on the application. Your insurance agent can guide you through this process.
Is Medicare Plan G Better than Plan F?
In the final analysis, it all comes down to your overall cost with these two policies. With the only difference being who pays the Part B deductible (you or your policy), this is an easy question to answer. Compare monthly rates between all carriers and see.
Ask us for your free Medigap Plan G rate analysis and see how much you can save.