Frequently Asked Questions
Q. Why is Plan G a better choice than Plan F?
A. There are several significant reasons that Plan G is more advantageous:
1. First and foremost, you need to understand the coverage differences.
There is only ONE difference in coverage between Plan F and Plan G and that difference is the coverage of the Medicare Part B deductible. This deductible (for 2013) is $147/year and applies to doctor's office charges. Plan F covers this deductible while Plan G does not.
2. Second, do the simple math on comparing Plan G and Plan F.
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 makes the most sense for you. If the premium difference between the two plans is greater than $12.25/month, then Plan G makes the most sense. Depending on your age and gender, you can save $300, $600 or even $1,000 per year in exchange for having to pay out that $147/year deductible. That's a no-brainer!
3. Last, understand the ramifications of "guaranteed issue" underwriting.
Possibly even more importantly, 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 into Plan F that they might 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 premium increases are likely to be higher than those on Plan G in the future.
Comparing Plan G and Plan F is not difficult to do. However, many people do not take the time to do it, and thus end up paying out much more per year than they need to. By following these simple steps, you can see which plan makes the most sense for you and make an informed choice.
Medicare Supplement Insurance Helpline: 1-800-290-6188