The standardized Medicare Supplement (Medigap) Plan F and Plan G are exactly alike except for one thing. Plan F pays the Medicare Part B Deductible. Plan G does not.
The Medicare Part B Deductible is a fixed, annual amount that Medicare sets every year. The Part B Deductible can (and usually does) change each year.
The decision to enroll in either Plan F or Plan G is a personal choice. Some people value having no deductible. Other people value saving money on premium.
Both Plan F and Plan G offer a way for you to budget for medical expenses with no surprises in exchange for a monthly insurance premium.
Medicare Supplement insurance companies adjust the premium at least annually to compensate for Medicare’s annual change in deductibles and other cost factors. In fact, you can count on receiving an annual rate increase no matter what Medicare Supplement plan you choose. There’s no getting around it.
Generally, if the difference between the annual premium for Plan F and the annual premium for Plan G is greater than the Part B Deductible, you save money by buying Plan G.
Here’s an example for a 76 year old male who does not use tobacco:
Plan F annual premium $2,332.92
Plan G annual premium $1,925.64
The difference is $407.28
Subtract the 2015 Part B Deductible from $407.28 – $147.00 = $260.28.
In my way of thinking, in Plan F this man would be paying an insurance company $260.28 to write a $147.00 check that he could write himself.
But it’s a personal choice. To some people, the service is worth paying for. To others, it isn’t.
Plan F vs Plan G? You decide.