The cost and benefit difference between Plans F and G is exactly $147.
Plan G always without exception has an annual cost that’s less than $147. Plan G saves you more money than Plan F.
As always, our goal is to show you how to save significant amounts of money by choosing the best plan for your premium dollar. Here is a breakdown of how Plan G is a better value of your premium dollar.
Plan F is often the most popular plan, however it is also the most expensive. Plan F is the most comprehensive Medigap / Medicare supplement plan. Plan F is not necessarily the best value of your premium dollar. Plan G is actually the plan that frequently provides the most value. The graphic below gives a brief overview of the outline of coverage for all of the Medigap / Medicare supplement plans. Please pay attention to Plan F and G. This is where we easily find significant savings for our clients.
We frequently recommend Plan G to our clients due to its overall savings. Why? Plan G saves you money and Plan F costs you more money for basically the same coverage. “Basically?”
So what’s the difference? Looking back up at the comparison chart you will see that Plan G does not pay the Part B deductible.
For Plan G, you are saving money because you have to physically write a check for the Part B deductible. If you choose a Plan F, someone in the insurance company has to physically write the check for you. That’s it. That’s the difference of potentially saving a HUNDRED or even HUNDREDS off your yearly premium. Please remember, you are still paying your Part B deductible with the Plan F. However, you are paying extra premium dollars for that Plan F in order for the insurance company to physically pay the deductible instead of you. You see, it costs money for the insurance company to hire people to handle the Part B payment for you. This is factored into your premium dollar. You are paying for this “convenience” with Plan F.
How about a quick example of how you can save? Sometimes our client’s like to see a comparison example; it gets to be a bit confusing with all of these plan letters and terminology. Let’s make an example. Mrs. Smith is a 70 year old woman who does not smoke. Mrs. Smith is currently on a Plan F and pays $1,620 a year in premiums. We will compare a Plan F and a Plan G and calculate the savings.
Plan F with Company ABC charges a yearly premium of [$1,620]
Plan G with Company XYZ charges a yearly premium of ($1,290 + $147 Part B deductible) = [$1,437]
Remember that the only difference with Plan G is that Mrs. Smith has to write the check for the Part B deductible ($147 for 2013) instead of her insurance company. In this example, Mrs. Smith is simply spending too much money on Plan F because the yearly premium of Plan G plus the Part B deductible ($1,290 + $147 = $1,437) is less than her Plan F’s yearly premium ($1,620).
Mrs. Smith is saving $183 a year simply because she chose to go with a Plan G and write out her Part B deductible check. Another way to look at it: Mrs. Smith’s Plan F insurance company, Company ABC, is charging her $183 to have someone in the insurance office write the check. Is it worth $183 to have the insurance company write the check? Of course not.
Let us help you find the same type of savings and put that money back into your bank account instead of the insurance company’s.