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Is Medigap Plan G Better Than Plan F (Medicare Plan F vs Plan G) - YouTube

Channel: Boomer Benefits - Medicare Expert

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have you been wondering which Medigap

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plan is better plan a for plan G hi

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there if we haven't met yet I'm Danielle

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Roberts

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Forbes finance Council member and

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co-founder here at boomer benefits where

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we help baby boomers navigate Medicare

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in this video I'll show you the two most

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popular Medigap plans and discuss why

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some people feel like Plan G is a better

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value than Plan F stay with me to the

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end of the video and I'll also tell you

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how to sign up for our free new to

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Medicare webinar where we go over

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everything you need to know when you're

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new to Medicare let me start by saying

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that Medicare supplements and Medigap

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plans are exactly the same thing just

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two different phrases used to describe

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the same product there are ten

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standardized Medigap plans offered in

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most states and four decades Medicare

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Plan F has been the top seller this is

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because it offers the most coverage when

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you look at standardized plans side by

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side you can see that plan F fills in

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all of the gaps in Medicare whereas

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other plans leave a portion for you to

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pay for example if you look at Medigap

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plan L it only covers 75% of your

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Hospital deductible and skilled nursing

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and leaves you several other things to

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pay Medigap plans a and B cover even

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less which is why so few people ever

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want to buy these plans many people

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living on fixed incomes want peace of

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mind when it comes to the health

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coverage and Medigap Plan F really

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delivers this because it provides what

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we call first dollar coverage first

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dollar coverage means that it covers all

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of your portion of Medicare claims

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expenses starting from the first dollar

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it completely pays for your Part A and B

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deductibles your skilled nursing

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coinsurance and your regular co-pays and

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coinsurance how this plays out for you

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in real life is that you'll never pull

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out your wallet for any Medicare

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coverage services

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there's no co-pays at the doctor or for

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lab work no deductible to pay when you

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go in the hospital or if you need

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expensive diagnostic testing

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whenever Medicare pays its share on a

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claim Plan F kicks in to pay your share

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being that Plan F offers the most

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coverage it is usually also the most

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expensive Medigap plan among those that

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you could choose from in your area now

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let's compare that to plan G as you can

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see plan G offers the second most

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comprehensive coverage the only

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difference is that plan G does not cover

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your Part B deductible so when you

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enroll in plan G you'll have this one

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small deductible to pay out of your own

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pocket upon your first outpatient

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service of each year once you satisfied

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that it functions exactly like a plan F

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for the rest of the year covering all of

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the rest of the costs that would

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otherwise have been yours to share

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because you're taking on the Part B

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deductible yourself

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plan G offers lower premiums than plan F

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let's look at an example for a female

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non tobacco user turning 65 in zip code

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7 6 108 running the numbers today we

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find that the lowest Medigap Plan F at

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her zip code has a premium of a hundred

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and thirty-three dollars and sixty cents

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when we search her plan G the lowest

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rate is 101 o 8 this is a savings of $32

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a month or over 390 per year now if she

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signs up for plan G we know she'll pay

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the Part B deductible if she uses any

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outpatient services that year but then

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she pays nothing else

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so her annual savings after we factor in

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that she will pay that deductible is

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over $200 considering that all the other

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great benefits of Medigap plans are the

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same no networks freedom to choose your

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own provider nationwide access no

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referrals necessary and no co-pays

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enrolling in plan G is a winner

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now these rates vary widely across the

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u.s. and some areas have substantially

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higher rates than others in some areas

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we may not see as much savings between

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the plan f and g that are offered

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however even if enrolling in plan G

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saves you only $100 a year my philosophy

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is that every dollar that stays in your

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pocket versus an insurance company's

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pocket is a pretty good dollar I want to

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talk for a minute about rate increases

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all Medigap plans have rate increases

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nearly every year including plans F and

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G this happens because the cost of

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health care in America is skyrocketing

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and your supplement plan is paying

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around 20% of all your health care costs

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when the cost for health care services

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increases

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the price of insurance increases along

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with it you're likely to hear that over

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the last decade Plan F has had higher

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rate increases than plan G this was

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particularly true a few years ago but in

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the last 18 months or so we've seen the

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rate increases level out with the

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percentage of increase on plan F versus

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plan G being more in line with each

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other however there are some changes

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coming to Medigap in 2020 that might

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make the rate for Plan F escalate faster

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than plan G beginning in 2020 new

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Medicare enrollees will no longer be

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able to purchase plan F due to

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legislation that was passed eliminating

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plans with first dollar coverage people

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who are eligible for Medicare prior to

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2020 will still be able to buy plan F

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down the road but new Medicare enrollees

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whose effective dates are on or after

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January 1st of 2020 will not be able to

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get plan C or F since new enrollees will

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no longer be able to join these plans

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we'll have a group of people on Medigap

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Plan F that are aging with no newer

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younger and potentially healthier people

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joining that pool that lowers the claims

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ratios so over time this could mean that

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plan F rates may escalate faster than

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other plans but we won't really know for

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sure until we get there Medigap plan G

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is not going away after 2020 it will

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continue to have a new stream of younger

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65 year old enrollees every year that

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help to keep that pool of risk more

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level so this is one of the reasons why

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I think we see so many people opting for

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plan G today

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so is medigap plan g better than plan f

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technically Plan F has the most

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comprehensive coverage however when all

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things are considered plan G can often

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be a better value it is currently the

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