Choosing the Right Medigap Plan: Plan G vs. Plan F
When it comes to enhancing your Medicare coverage, Medigap plans offer significant benefits, helping cover out-of-pocket costs that Medicare doesn’t. With ten Medigap plans available, two stand out as the most popular options: Medigap Plan F and Medigap Plan G.
At iHealthBrokers.com, we’re here to guide you through this important decision. Let’s break down the differences between these plans, eligibility requirements, and other key considerations to help you make an informed choice.
Key Coverage Differences Between Plan F and Plan G
Medigap Plans F and G are very similar, with just one key difference: coverage for the Medicare Part B deductible. Here’s a breakdown of what both plans cover:
- Part A hospice care copayments or coinsurance
- Part A deductible
- Part A hospital coinsurance (plus 365 extra days of coverage)
- Skilled nursing facility coinsurance
- Blood transfusion (first three pints)
- Part B copayments or coinsurance
- Part B excess charges
- Emergency services during foreign travel (up to the first 60 days)
The only difference? Plan F covers the Part B deductible, while Plan G does not.
Eligibility for Medigap Plan F
Before deciding between Plan F and Plan G, it’s essential to know if you’re eligible for Plan F.
To enroll in any Medigap plan, you must:
- Be enrolled in Medicare Parts A and B.
- Be eligible for Medicare before January 1, 2020, to qualify for Plan F.
Due to Medicare law changes, newly eligible beneficiaries cannot enroll in Plan F. However, if you become eligible before the cut-off date, you can still enroll in or retain Plan F.
If you don’t meet the eligibility requirements for Plan F, don’t worry—Plan G may be a better option for you, even if you qualify for Plan F.
Cost Comparison: Plan F vs. Plan G
One of the main differences between these plans lies in their costs. Both plans are comprehensive, but premiums and out-of-pocket expenses vary.
Premium Differences
Medigap premiums depend on factors like age, gender, location, and tobacco use. Here’s a general cost comparison:
- Plan F Premiums: $140–$200/month on average
- Plan G Premiums: $100–$160/month on average
Plan F generally costs more because it covers the Part B deductible, eliminating out-of-pocket costs for Medicare-approved services. Plan G’s lower premiums reflect the exclusion of the Part B deductible.
Rate Increases
Premiums for both plans increase annually, but Plan F typically sees higher increases. Why? The pool of Plan F beneficiaries is shrinking, leading to an older, higher-risk group. Increases for Plan F premiums can range from 5% to 8% annually.
In contrast, Plan G attracts younger, healthier enrollees, resulting in a more stable risk pool. Premiums for Plan G tend to increase by 3% to 5% annually.
Out-of-Pocket Costs
While Plan F covers all Medicare-approved services with no out-of-pocket costs, Plan G requires you to pay the Part B deductible. Once the deductible is met, Plan G offers identical coverage to Plan F.
It’s worth noting that neither plan covers services like:
- Prescription drugs (covered under Medicare Part D)
- Dental, vision, and hearing care (often covered by a separate Dental, Vision, Hearing (DVH) policy)
Is Medigap Plan F Worth It?
Choosing the right plan depends on your preferences and financial situation. Here’s a simple comparison:
- If Plan F’s premiums are more than $226/year higher than Plan G’s, you’ll save money with Plan G by paying the Part B deductible.
- Some people prefer the convenience and predictability of Plan F, even if it costs more.
Example
Let’s say you’re comparing a Plan F premium of $160/month to a Plan G premium of $140/month:
- Annual cost difference: $240
- Part B deductible: $226
In this case, Plan G would save you $14 annually.
Switching from Plan F to Plan G
If you’re already enrolled in Plan F and considering a switch to Plan G, you can do so at any time. Unlike Medicare Advantage or Part D plans, Medigap plans don’t have specific enrollment periods. However, most switches are subject to medical underwriting.
While underwriting doesn’t involve a physical exam, it does require answering health questions. An insurance carrier may use your responses to decide whether to approve your application.
Switching can be simple with help from a licensed Medicare advisor. At iHealthBrokers.com, our team will:
- Help you complete your application
- Coordinate your new plan’s start date with the termination of your current plan
- Ensure no gap in coverage
Find the Right Medigap Plan
Choosing between Medigap Plan F and Plan G is a personal decision, but you don’t have to make it alone.
One question we hear frequently is, “Is Medigap Plan G better than Plan F?”
At iHealthBrokers.com, we’ve helped thousands of Medicare beneficiaries navigate their options and find the right plan. Whether you’re new to Medicare or considering switching plans, our expert advisors are here to guide you every step of the way.
Check our 2024. Supplements plan comparison
Ready to make an informed decision? Contact iHealthBrokers.com today!
Jesse Smedley is the Principal Broker for iHealthBrokers and the founder, president, and CEO of Smedley Insurance Group, Inc. and iHealthBrokers.com. Since the inception of SIG in 2007, Jesse has been dedicated to helping people save money on their health insurance by providing them with resources to educate themselves on all their health insurance options, both under age 65 and Medicare beneficiaries. He is featured in many publications as well as writes regularly for expert columns regarding health insurance and Medicare.
