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Medigap Plan G is a Medicare Supplement plan that is the 2nd most comprehensive plan currently offered. It is often mistakenly overlooked in favor of the more popular Medigap Plan F. Many agents and companies promote the Plan F simply because it is easier to explain and understand for those on Medicare. Plan F pays for everything that Medicare does not cover at the doctor and hospital so that you do not have any out of pocket costs.
So, why would not you want a plan like that? There are several significant reasons, and below, I'll walk you through the steps of comparing the two plans and explain why I believe Plan G to be more advantageous:
- First and foremost, you need to understand the coverage differences.
- Secondly, do some simple math on comparing the G and the F.
- Last, understand the ramifications of "guaranteed issue" underwriting.
There is only ONE difference in coverage between the Plan F and the Plan G and that difference is the coverage of the Medicare Part B deductible. This deductible (for 2011) is $ 162 / year and applies to doctor's office charges. Plan F covers this deductible while Plan G does not.
In most cases and with most companies, Plan G is a good bit less expensive than F. Since there is only the one benefit difference that was mentioned above, you can easily do the math to see which plan make the most sense for you. If the premium difference between the two plans is greater than $ 13.50 / month, then the Plan G makes the most sense. In many cases that I've seen, you can save $ 300 / year in exchange for having to pay out that $ 162 / year deductible. That's a no-brainer!
Possibly even more importantly, the Plan F is offered in several instances on a "guaranteed issue" basis. This means that no medical questions are asked. This is a Federal requirement, so companies have to take people onto Plan F that they may not otherwise accept or approve. This is not the case with Plan G, which does not fall under this "guaranteed issue" requirement. Because of this, most people agree that Plan F premiums increase are likely to be higher than those on Plan G.
Comparing Medigap Plan G and Plan F is not difficult to do. However, many people do not take the time to do it, and so, end up paying out much more per year than they need to. By following these simple steps outlined above, you can see which plan makes the most sense for you and make an informed choice.
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Source by Garrett Ball
