Which is Better: Medicare Plan F vs Plan G
If you’re wondering which Medicare Supplement plan 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. Medicare Plan F vs Plan G: Which is Better?
What is the difference between Medicare Plan F and G?
For decades, Medicare Plan F has been the best supplemental Medicare insurance that money can buy. Simply put, it covers all of the gaps in Original Medicare.
As you’re probably aware, Original Medicare — that’s your Part A and Part B coverage — have deductibles, coinsurance, and copayments that you pay out-of-pocket. Here’s a quick overview of these out-of-pocket costs:
- Medicare Part A Coinsurance & Hospital Costs
- Medicare Part A Skilled Nursing Facility Coinsurance
- Medicare Part A Deductible
- Medicare Part A Hospice Care Coinsurance or Copayment
- Medicare Part B Deductible (annual)
- Medicare Part B Coinsurance or Copayment
- Medicare Part B Excess Charges
- 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 Plan G 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 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 Supplement Plan G is the 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 period 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 enrollment window starts when you first enroll in Medicare Part B (the effective date of your coverage) and last for six months. Once this window of time has passed, you no longer have a guaranteed issue right, 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.