Insurance Companies Like Plan G and You Should Too
Medigap Plan G is getting a lot of attention. Insurance companies like Plan G and you should too. Whether you are new to Medicare or a seasoned Medicare beneficiary, the news about Medigap Plan G rates could benefit you.
In many states Medigap Plan G rates are DECREASING. Multiple Insurance companies want Plan G business and are competing with each other to offer the best rates on Plan G. One major insurance company reduced Plan G premiums in 18 states…ranging from 6% to a 22% reduction.
Insurance companies can’t change the benefits associated with Medigap Plans, but they can offer different rates. By shopping the insurance market, you can take advantage of the Medigap Plan G price war.
Why do insurance companies like Plan G? If you’re familiar with Medigap Plan F, then you know that this plan covers all deductibles, coinsurance and co-pays. This is referred to as first dollar coverage. Many seniors have this plan and overuse it. This drives the cost of Plan F higher and higher.
Medigap Plan G is a great alternative to Plan F. It has the same exact benefits after meeting the annual Part B deductible of $183 (Updated for 2017). The rates with Plan G are usually lower than Plan F. History has shown that Plan G rate increases are more stable than Plan F. The insurance companies see the true value in this plan and want more people to buy Plan G vs Plan F.
Simply put, most Plan G recipients use the plan when they need to (not for a little sneeze or hang nail) and the group of Plan G users are generally healthier than Plan F recipients. This keeps medical pay outs down. This is good for the insurance company and when it comes to insurance premiums…good for you as well.
If you already have Plan G, will you see a rate decrease? That depends on your insurance company. If they are lowering their rates you may not see it until your policy renews. You can always call your Medigap company or contact me at I’ll help you figure out where your Medigap Plan G stands in comparison to others.
What if you already have Plan F? Now’s a great time to find out if you can qualify for Plan G. Your Plan F rate increases will continue to push your premium closer and closer to $200 a month. Waiting to see when (not if) that will happen could cost you. There are many people using Plan F and the insurance companies raise premiums to help offset their costs.
If you want to see what’s happening with Plan G in your area, you can reach me several ways.
I’m here to help and happy to give you a second opinion on your current Medigap Plan and it’s premium. Just in case you are wondering, this service is free. As an independent licensed insurance broker, I am compensated by the insurance company.