Is Medigap Plan F the Best Supplement? For most Medicare beneficiaries the selection of Medigap Plan F over other choices appeared to be a no-brainer. With Plan F, a Medicare beneficiary could expect that all covered Medicare services and procedures will be paid for by either Medicare or the Supplemental insurance company. Other than the plan premiums, there should be no other out-of-pocket expenses. Most sales reps were happy to oblige and even today sell Plan F when asked because it’s the easy thing to do. Of course, it doesn’t hurt that the comprehensive coverage of Medigap Plan F means higher premiums which equate to higher commissions for the salesperson. As a result, Medicare Supplement Plan F is by far the most popular Medigap Plan used by seniors in the United States. In fact, a survey conducted in 2010 showed that 40% of all Medigap Plans held were Plan F. While the Medigap Plan F coverage is comprehensive, price wise Plan F is not always the best value.
Shopping for the right Medicare Supplement plan is not complicated. But if we were to ask seniors why Medicare Supplement Plan G is the better value, many would give us a blank stare. For most seniors, shopping for a Medigap plan consists of a quick study of the table below (from page 93 of the 2015 Medicare & You handbook) showing that Medigap Plan F offers the most comprehensive coverage. From there, it’s simply a matter of getting a Medicare Supplement quote to find which company offers Plan F at the lowest price in your area, and the deal is done. Some seniors and agents never look closely at the features of each plan to see if they are really worth the extra money. They never re-shop their plan as the years go by and persistent rate increases have pushed their monthly premium well beyond what they were originally paying. As a result, many seniors are overpaying for their Medicare Supplement coverage by hundreds and sometimes thousands of dollars per year.
What we will show in this article is how Medicare beneficiaries can save hundreds of dollars per year in insurance premiums by considering Medicare Supplement Plan G, which can be a much better value for your insurance dollars. That value stems from the fact that insurance companies can use minor benefits to bolster their profits. It’s also important to note that historical price increases in Plan G have been historically lower than Plan F, creating a price differential to the benefit of Plan G policy holders.