Medicare Supplement Plan F

Medicare Supplement Plan F – Is it really the best choice?

When people think of Medicare Supplements, usually the first plan that you will hear them talk about is a Medicare Supplement Plan F.  Why?  This plan offers first dollar coverage and there is no out of pocket cost as long as Medicare picks up its 80%.  But did you know that there are significant savings with plans outside of the popular Medicare Supplement Plan F?  Let’s take a look at some current facts.

Medicare Supplement Plan F Facts

  1. There are no co-pays for Parts A & B.
  2. There are no deductibles.
  3. There are no networks.
  4. Rate increases are sometimes higher than other plans.

Now let’s take a look at Plan G facts…

  1. There are no co-pays for Parts A & B.
  2. The only deductible is the annual Part B deductible ($166 for 2016).
  3. No deductible for Part A, which is your hospital insurance.
  4. There are no networks.
  5. Rate increases are generally lower than Medicare Supplement Plan F.

Okay, from the facts above, you can see that Plan G has some cost sharing over the Medicare Supplement Plan F.  But what about the difference in premium?  Is there a cost savings there?  Absolutely.  Now let’s see if the difference in premium is greater than the out of pocket cost (Part B deductible).

I’m going to look up some Medicare Supplement Plan F & G rates on our quoter, which can be accessed by clicking HERE.  We’ll look at some rate comparisons in 5 different areas.  Since the rates are based on zip code, we will pull zip codes from the largest cities of the states below.  Rates are also based on gender, age, and whether or not you use tobacco.  For this illustration, we are going to pull female, age 65, and non-tobacco.

Location Plan F Plan G Annual Savings
Jackson, Mississippi (392XX) $116.65 $89.63 $324.24
Houston, Texas (770XX) $146.81 $111.79 $420.24
Detroit, Michigan (482XX) $141.15 $118.87 $267.36
Nashville, Tennessee (372XX) $134.95 $95.80 $469.80
Philadelphia, Pennsylvania (190XX) $158.52 $123.45 $420.84

Wow.  Look at those savings going from a Medicare Supplement Plan F to a Plan G!  Like I mentioned before, the only out of pocket cost with Plan G is the Part B deductible which is $166 this year.  Why would you pay $469.80 in TN, for example, for a $166 benefit?  I know I wouldn’t.

If you’d like to speak to one of our advisors, call us at (877) 759-5760 or send us an e-mail to seniorservices@morganwhite.com.  We can answer your questions and see if there’s an opportunity for us to work together.  If not, that’s okay!  Let’s get this conversation going.

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