Medigap Plan F or Plan G? Which plan is best? Are you wondering if Medicare Supplement Plan F is the top plan? Perhaps Medigap Plan G is the better deal? Let’s look into the differences between these plans. This post will help you make the right decision before you buy your insurance policy.
Medicare Supplement Plan F Vs Plan G
There are several key differences between Plans F and G. One of the most notable differences is with the Part B deductible. Plan F covers it while Plan G does not. Additionally, F covers 100% of Medicare-approved expenses, while G covers only 80%. Plan F is generally more expensive compared to G. However, it offers more comprehensive coverage. If you are considering these two plans, it’s important to compare the costs and benefits of each option. Medigap Plan F is usually the most popular policy and G is right behind. Why are these Medicare polices #1 and #2? It’s all about value.
The Difference Between Plan F And Medigap Plan G Is $226
It really is quite that simple. The difference between F and G is the cost of Part B deductible. Plan G doesn’t cover the Part B deductible (In 2023, it is $226.) 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.
Is Medicare Plan G Better?
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 provide more value considering the benefits and low premium.
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 top 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 deductible is not a Plan G benefit.
| Medicare Supplement Benefits | Plan G covers? |
|---|---|
| Medicare Part A coinsurance & hospital costs (up to additional 365 days after Medicare benefits are used | YES |
| Medicare Part B coinsurance or copayment | YES |
| Blood (first 3 pints) | YES |
| Part A hospice care coinsurance or copayment | YES |
| Skilled nursing facility care coinsurance | YES |
| Part A deductible | YES |
| Part B deductible | NO |
| Part B excess charges | YES |
| Foreign travel emergency (up to plan limits) | YES |
Although Plan F covers the Part B ded, 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 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.
Plan F is no longer available
Plan F is no longer available for new Medicare beneficiaries. 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.
If you are a Medicare beneficiary who was eligible before January 1, 2020, you are allowed to purchase Plan F after 2020.
Congress passed legislation prohibiting the sale of plans offering Part B deductible coverage. This includes Medigap Plan F.
Compare Medicare Plan F And Plan G
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 Medicare plans 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 ($233 in 2022) 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 ded ($1,400 + $233 = $1,633) is less than the Plan F annual premium ($1,800).
Mrs. Smith would save $177 a year for Plan G which includes the Part B ded. 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 these policies.
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.
Medigap Plan F Is The Most Popular- It’s Also The Most Expensive.
Plan F is the most comprehensive Medigap policy. But as it’s been explained, it is not necessarily a good value for your premium dollar. As always, our goal is to show you how to save significant amounts of money by choosing the right option for your premium dollar.
What About 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. Learn more about Plan N versus Plan G.
Here is a breakdown of the 3 most popular plans:
Medicare Supplement Plan F Benefits
Part A | |||
| Services | Medicare Pays | This Plan Pays | You Pay |
|---|---|---|---|
| Hospitalization | |||
| First 60 Days | All But $1,556 | $1,556 (Part A Deductible) | $0 |
| 61st Through 90th Day | All But $389 a Day | $389 a Day | $0 |
| 91st Day and After (60 Reserve Days) | All But $778 a Day | $778 a Day | $0 |
| After Reserve (Additional 365 Days) | $0 | 100% of Eligible Expenses | $0 |
| Beyond the Additional 365 Days | $0 | $0 | All Costs |
| Skilled Nursing Facility Care | |||
| First 20 Days | All Approved Amounts | $0 | $0 |
| 21st Through 100th Day | All But $176.00 a Day | Up to $176.00 a Day | $0 |
| 101st Day and After | $0 | $0 | All Costs |
| Blood | |||
| First Three Pints | $0 | 100% | $0 |
| Additional Amounts | 100% | $0 | $0 |
| Hospice Care | |||
| You must meet Medicare’s requirements, including a doctor’s certification of terminal illness | All but very limited copayment / coinsurance for outpatient drugs and inpatient respite care | Medicare copayment / coinsurance | $0 |
Part B | |||
| Services | Medicare Pays | This Plan Pays | You Pay |
|---|---|---|---|
| Medical Expenses | |||
| 1st $198 of Approved Amounts | $0 | $233 (Part B Deductible) | $0 |
| Remainder of Approved Amounts | Generally 80% | Generally 20% | $0 |
| Part B Excess Charge | $0 | 100% | $0 |
| Blood | |||
| First Three Pints | $0 | 100% | $0 |
| Next $198 of Approved Amounts | $0 | $203 (Plan B Deductible) | $0 |
| Remainder of Approved Amounts | Generally 80% | Generally 20% | $0 |
| Clinical Laboratory Services | |||
| Tests for Diagnostic Services | 100% | $0 | $0 |
| Foreign Travel | |||
| 1st $250 each calendar year | $0 | $0 | $250 |
| Remainder of Charges up to a lifetime maximum of $50,000 | $0 | 80% | 20% |
Medicare Supplement Plan G Benefits
Part A | |||
| Services | Medicare Pays | This Plan Pays | You Pay |
|---|---|---|---|
| Hospitalization | |||
| First 60 Days | All But $1,556 | $1,556 (Part A Deductible) | $0 |
| 61st Through 90th Day | All But $389 a Day | $389 a Day | $0 |
| 91st Day and After (60 Reserve Days) | All But $778 a Day | $778 a Day | $0 |
| After Reserve (Additional 365 Days) | $0 | 100% of Eligible Expenses | $0 |
| Beyond the Additional 365 Days | $0 | $0 | All Costs |
| Skilled Nursing Facility Care | |||
| First 20 Days | All Approved Amounts | $0 | $0 |
| 21st Through 100th Day | All But $176.00 a Day | Up to $176.00 a Day | $0 |
| 101st Day and After | $0 | $0 | All Costs |
| Blood | |||
| First Three Pints | $0 | 100% | $0 |
| Additional Amounts | 100% | $0 | $0 |
| Hospice Care | |||
| You must meet Medicare’s requirements, including a doctor’s certification of terminal illness | All but very limited copayment / coinsurance for outpatient drugs and inpatient respite care | Medicare copayment / coinsurance | $0 |
Part B | |||
| Services | Medicare Pays | This Plan Pays | You Pay |
|---|---|---|---|
| Medical Expenses | |||
| 1st $198 of Approved Amounts | $0 | $0 | $233 (Part B Deductible) |
| Remainder of Approved Amounts | Generally 80% | Generally 20% | $0 |
| Part B Excess Charge | $0 | 100% | $0 |
| Blood | |||
| First Three Pints | $0 | 100% | $0 |
| Next $198 of Approved Amounts | $0 | $0 | $233 (Plan B Deductible) |
| Remainder of Approved Amounts | Generally 80% | Generally 20% | $0 |
| Clinical Laboratory Services | |||
| Tests for Diagnostic Services | 100% | $0 | $0 |
| Foreign Travel | |||
| 1st $250 during 1st 60 days | $0 | $0 | $250 |
| Remainder of Charges up to a lifetime maximum of $50,000 | $0 | 80% | 20% |
Medicare Supplement Plan N Benefits
Part A | |||
| Services | Medicare Pays | This Plan Pays | You Pay |
|---|---|---|---|
| Hospitalization | |||
| First 60 Days | All But $1,556 | $1,556 (Part A Deductible) | $0 |
| 61st Through 90th Day | All But $389 a Day | $389 a Day | $0 |
| 91st Day and After (60 Reserve Days) | All But $778 a Day | $778 a Day | $0 |
| After Reserve (Additional 365 Days) | $0 | 100% of Eligible Expenses | $0 |
| Beyond the Additional 365 Days | $0 | $0 | All Costs |
| Skilled Nursing Facility Care | |||
| First 20 Days | All Approved Amounts | $0 | $0 |
| 21st Through 100th Day | All But $176.00 a Day | Up to $176.00 a Day | $0 |
| 101st Day and After | $0 | $0 | All Costs |
| Blood | |||
| First Three Pints | $0 | 100% | $0 |
| Additional Amounts | 100% | $0 | $0 |
| Hospice Care | |||
| You must meet Medicare’s requirements, including a doctor’s certification of terminal illness | All but very limited copayment / coinsurance for outpatient drugs and inpatient respite care | Medicare copayment / coinsurance | $0 |
Part B | |||
| Services | Medicare Pays | This Plan Pays | You Pay |
|---|---|---|---|
| Medical Expenses | |||
| 1st $198 of Approved Amounts | $0 | $0 | $233 (Part B Deductible) |
| Remainder of Approved Amounts | Generally 80% | Balance, Other than Copays | Up to $20/$50 Copays, Emergency visit copay waived if admitted |
| Part B Excess Charge | $0 | $0 | All Costs |
| Blood | |||
| First Three Pints | $0 | 100% | $0 |
| Next $198 of Approved Amounts | $0 | $0 | $203 (Plan B Deductible) |
| Remainder of Approved Amounts | Generally 80% | Generally 20% | $0 |
| Clinical Laboratory Services | |||
| Tests for Diagnostic Services | 100% | $0 | $0 |
| Foreign Travel | |||
| 1st $250 each calendar year | $0 | $0 | $250 |
| Remainder of Charges up to a lifetime maximum of $50,000 | $0 | 80% | 20% |
FAQ
Our Recommendation
By consulting directly with REMEDIGAP, you have access to personal service before, during, and after purchasing a Medigap policy. Education is key and we want you to understand Medicare, Medicare Advantage and Medigap. We will answer all your questions before you make a decision. You’ll never feel rushed. 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. Please reach out to us if you’re new to Medicare or if you have any questions.
Michael Quinn is an independent licensed insurance agent with a passion for helping others navigate the complex world of Medicare insurance. With over a decade of experience in the field, Michael has established himself as a trusted advisor to countless individuals seeking guidance on their healthcare coverage options.
In 2013, Michael obtained his license as an insurance agent, laying the foundation for his successful career in the industry. Prior to that, he earned his Masters Degree in Communicative Disorders from the University of Central Florida, which equipped him with strong communication and interpersonal skills.
Driven by a genuine desire to make a positive impact on people's lives, Michael co-founded REMEDIGAP in 2013. It was created as a dedicated platform that aims to educate individuals about Medicare insurance. Through REMEDIGAP, Michael provides comprehensive resources and unbiased information to empower individuals to make informed decisions about their healthcare coverage.
With his extensive knowledge and expertise, Michael has been able to guide thousands of individuals towards finding the most suitable Medicare insurance plans tailored to their unique needs. His dedication to his clients' well-being, coupled with his passion for simplifying complex insurance concepts, has earned him a reputation as a compassionate and reliable advisor.
His work has appeared on many blogs and websites including, USA Today, Yahoo.com, Nerdwallet, Think Advisor, and REAL SIMPLE.
