Plan F vs Plan G

Plan F vs Plan G

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Are you wondering if Medicare Supplement Plan F is the best plan? Perhaps Medigap Plan G is the better deal? Let’s look into the differences between Plan F and G so you can make the right decision.

Plan F vs Plan G

Medigap Plan F is usually the number one plan and Plan G is right behind. Why are these Medicare plans #1 and #2? 

It’s all about value.

The Difference Between Plan F and Plan G is $198

It really is quite that simple. The difference between Plan F and Plan G is the annual Part B deductible of $198. After the deductible is met, Plan G benefits are exactly the same as Plan F. Plan F benefits include coverage for all copays, deductibles and coinsurance. This type of coverage has made Plan F extremely popular among seniors on Medicare.

Why Consider Plan G when Plan F is Popular?

It’s easy. Plan G is a great value and Plan F can cost you more money for basically the same coverage. Most people get Plan F because their friend has Plan F. Or, perhaps their agent or insurance carrier didn’t explain the other plans available.

Some agents will quickly tell you that everyone gets Plan F because it “pays for everything”. This is true. But you also need to make sure Plan F’s premium suits your budget. Plan G can be a much better value considering the benefits and low premium.

Why is Medicare Plan F popular?

There are a couple reasons why an agent or insurance company might recommend Plan F over Plan G. 

  • Plan F typically has a higher premium than Plan G. The higher the premium the bigger the agent’s commission. 
  • Some insurance carriers don’t sell Plan G, so the best plan they can offer is Plan F.

There is only 1 difference between the plans, but it can save you hundreds of dollars now and potentially thousands over time.

Looking at the chart below, you can see the Part B deductible is not a Plan G benefit.

Medicare Supplement BenefitsPlan G covers?
Medicare Part A coinsurance & hospital costs (up to additional 365 days after medicare benefits are usedYES
Medicare Part B coinsurance or copaymentYES
Blood (first 3 pints)YES
Part A hospice care coinsurance or copaymentYES
Skilled nursing facility care coinsuranceYES
Part A deductibleYES
Part B deductibleNO
Part B excess chargesYES
Foreign travel emergency (up to plan limits)YES

Although Plan F covers the Part B deductible, you’re still paying for it. It’s just added into your premium.

Why does Plan F cost so much more than Plan G?

There are several reasons. It costs money for the insurance company to manage, handle, and pay the Part B deductible payment for you.

This is factored into your premium dollar. So, you actually end up paying for this “convenience” with Plan F.

Plan F can also be more susceptible to rate increases. Because of its popularity and guaranteed acceptance with qualifying individuals, Plan F typically has more unhealthy people than Plan G. This equates to more claims and higher rates passed to the policy holder.

Insurance companies like Plan G and you should too

The future of Medigap Plan F

Congress passed legislation prohibiting the sale of plans offering Part B deductible coverage. This includes Medigap Plan F. 

Insurance companies will no longer be able to sell Plan F to anyone who becomes eligible for Medicare on or after January 1, 2020.

Current policy holders and anyone purchasing before 2020 will be able to keep Plan F. In addition, if you are Medicare eligible before January 1, 2020, you are allowed to purchase Plan F after 2020.

Sample Plan F and Plan G comparison 

Mrs. Smith is a 70 year young woman who does not smoke. 

Mrs. Smith is currently on a Plan F and pays $1,800 a year in premiums.  Let’s compare a Plan F to Plan G and calculate the savings.

1.  Plan F with “Company A” charges a yearly premium of $1,800.

2.  Plan G with “Company Z” charges a yearly premium of $1,400. 

Remember, the only difference with Plan G is that Mrs. Smith has to pay the Medicare Part B deductible ($166) instead of her insurance company incorporating it into the premium.  

Mrs. Smith is spending more on her premium for Plan F.

This is because the annual premium of Medigap Plan G plus the Part B deductible ($1,400 + $198 = $1,598) is less than the Plan F annual premium ($1,800).

Mrs. Smith would save $202 a year for Plan G which includes the Part B deductible. Remember that your Part B is usually paid over several office visits and not all at once.

Let’s also consider the long term effect of Plan G vs. Plan F.  

Market history has shown that Plan G has stable rate increases.  Insurance companies like Plan G and some have even reduced Plan G premiums to get your business.  

Comparing premium rate increases over five years, we see the true value of Plan G.

Plan F vs Plan G

Plan F is the most popular plan, however it can also be the most expensive.  

Plan F is the most comprehensive Medicare supplement plan. But as it’s been explained, Plan F is not necessarily the best value for your premium dollar.

As always, our goal is to show you how to save significant amounts of money by choosing the best plan for your premium dollar.

What about Plan F vs Plan G vs Plan N?

Plan N is the 3rd most popular plan. Although Medigap Plan N provides great value and excellent coverage, it won’t cover everything.

You will be responsible if there are any excess charges. You’ll also have to pay for your Part B deductible as well as some co-payments at the emergency room and your physician’s office. Click here to learn more about Medigap Plan N

Here is a breakdown of the 3 most popular plan benefits:

Medicare Supplement Plan F Benefits

Part A

ServicesMedicare PaysThis Plan PaysYou Pay
Hospitalization
First 60 DaysAll But $1408$1408 (Part A Deductible)$0
61st Through 90th DayAll But $352 a Day$352 a Day$0
91st Day and After (60 Reserve Days)All But $704 a Day$704 a Day$0
After Reserve (Additional 365 Days)$0100% of Eligible Expenses$0
Beyond the Additional 365 Days$0$0All Costs
Skilled Nursing Facility Care
First 20 DaysAll Approved Amounts$0$0
21st Through 100th DayAll But $176.00 a DayUp to $176.00 a Day$0
101st Day and After$0$0All Costs
Blood
First Three Pints$0100%$0
Additional Amounts100%$0$0
Hospice Care
You must meet Medicare’s requirements, including a doctor’s certification of terminal illnessAll but very limited copayment / coinsurance for outpatient drugs and inpatient respite careMedicare copayment / coinsurance$0

Part B

ServicesMedicare PaysThis Plan PaysYou Pay
Medical Expenses
1st $198 of Approved Amounts$0$198 (Part B Deductible)$0
Remainder of Approved AmountsGenerally 80%Generally 20%$0
Part B Excess Charge$0100%$0
Blood
First Three Pints$0100%$0
Next $198 of Approved Amounts$0$198 (Plan B Deductible)$0
Remainder of Approved AmountsGenerally 80%Generally 20%$0
Clinical Laboratory Services
Tests for Diagnostic Services100%$0$0
Foreign Travel
1st $250 each calendar year$0$0$250
Remainder of Charges up to a lifetime maximum of $50,000$080%20%

Medicare Supplement Plan G Benefits

Part A

ServicesMedicare PaysThis Plan PaysYou Pay
Hospitalization
First 60 DaysAll But $1408$1408 (Part A Deductible)$0
61st Through 90th DayAll But $352 a Day$352 a Day$0
91st Day and After (60 Reserve Days)All But $704 a Day$704 a Day$0
After Reserve (Additional 365 Days)$0100% of Eligible Expenses$0
Beyond the Additional 365 Days$0$0All Costs
Skilled Nursing Facility Care
First 20 DaysAll Approved Amounts$0$0
21st Through 100th DayAll But $176.00 a DayUp to $176.00 a Day$0
101st Day and After$0$0All Costs
Blood
First Three Pints$0100%$0
Additional Amounts100%$0$0
Hospice Care
You must meet Medicare’s requirements, including a doctor’s certification of terminal illnessAll but very limited copayment / coinsurance for outpatient drugs and inpatient respite careMedicare copayment / coinsurance$0

Part B

ServicesMedicare PaysThis Plan PaysYou Pay
Medical Expenses
1st $198 of Approved Amounts$0$0$198 (Part B Deductible)
Remainder of Approved AmountsGenerally 80%Generally 20%$0
Part B Excess Charge$0100%$0
Blood
First Three Pints$0100%$0
Next $198 of Approved Amounts$0$0$198 (Plan B Deductible)
Remainder of Approved AmountsGenerally 80%Generally 20%$0
Clinical Laboratory Services
Tests for Diagnostic Services100%$0$0
Foreign Travel
1st $250 during 1st 60 days$0$0$250
Remainder of Charges up to a lifetime maximum of $50,000$080%20%

Medicare Supplement Plan N Benefits

Part A

ServicesMedicare PaysThis Plan PaysYou Pay
Hospitalization
First 60 DaysAll But $1408$1408 (Part A Deductible)$0
61st Through 90th DayAll But $352 a Day$352 a Day$0
91st Day and After (60 Reserve Days)All But $704 a Day$704 a Day$0
After Reserve (Additional 365 Days)$0100% of Eligible Expenses$0
Beyond the Additional 365 Days$0$0All Costs
Skilled Nursing Facility Care
First 20 DaysAll Approved Amounts$0$0
21st Through 100th DayAll But $176.00 a DayUp to $176.00 a Day$0
101st Day and After$0$0All Costs
Blood
First Three Pints$0100%$0
Additional Amounts100%$0$0
Hospice Care
You must meet Medicare’s requirements, including a doctor’s certification of terminal illnessAll but very limited copayment / coinsurance for outpatient drugs and inpatient respite careMedicare copayment / coinsurance$0

Part B

ServicesMedicare PaysThis Plan PaysYou Pay
Medical Expenses
1st $198 of Approved Amounts$0$0$198 (Part B Deductible)
Remainder of Approved AmountsGenerally 80%Balance, Other than CopaysUp to $20/$50 Copays, Emergency visit copay waived if admitted
Part B Excess Charge$0$0All Costs
Blood
First Three Pints$0100%$0
Next $198 of Approved Amounts$0$0$198 (Plan B Deductible)
Remainder of Approved AmountsGenerally 80%Generally 20%$0
Clinical Laboratory Services
Tests for Diagnostic Services100%$0$0
Foreign Travel
1st $250 each calendar year$0$0$250
Remainder of Charges up to a lifetime maximum of $50,000$080%20%

Our Recommendation

By consulting directly with REMEDIGAP, you have access to personal service before, during, and after purchasing a Medigap plan. Education is key and we want you to understand Medicare and Medigap and how they work together. We will answer all your questions before you make a decision, so you’ll never feel rushed. 

You may already know a lot about Medicare and have no questions at all. Either way, we will customize our approach based on your needs. Once you decide what you want, we’ll guide you through the application process and be there every year to review your rate.

Thank you for reading The Difference Between Medigap Plan F and Plan G.  Please reach out to us if you have any questions.

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