Medigap plans can be confusin’. Plan F and Plan G are popular choices, but which one’s better? Let’s break it down real quick: Plan F covers more, but it costs more too. Plan G is cheaper, but you gotta pay a small deductible.
What’s the deal with Medigap plans?
I’m gonna tell ya ’bout Medigap plans. They’re like extra insurance that helps pay for stuff Medicare don’t cover. It’s kinda confusing, but I’ll try to make it simple.
There’s a bunch of different Medigap plans, but we’re gonna focus on Plan F and Plan G. These two are pretty popular, and people always ask me which one’s better.
The basics of Plan F
Plan F is like the big kahuna of Medigap plans. It covers pretty much everything. You don’t gotta pay nothin’ extra when you go to the doctor or hospital. Sounds great, right?
But here’s the catch: it’s expensive. You gotta pay a lot every month for all that coverage. And if you’re new to Medicare, you can’t even get Plan F anymore. They stopped sellin’ it to new folks in 2020.
Plan F covers all these things:
- Part A coinsurance and hospital costs
- Part B coinsurance or copayment
- Blood (first 3 pints)
- Part A hospice care coinsurance or copayment
- Skilled nursing facility care coinsurance
- Part A deductible
- Part B deductible
- Part B excess charges
- Foreign travel emergency (up to plan limits)
It’s like havin’ a safety net for all your medical costs. Some folks really like that peace of mind.
What’s the deal with Plan G?
Plan G is like Plan F’s little brother. It covers almost everything, but there’s one big difference. You gotta pay a small deductible every year. In 2024, that deductible is $240.
But here’s the good news: Plan G is cheaper than Plan F. You pay less every month, but you gotta remember that deductible.
Plan G covers all the same stuff as Plan F, except for that Part B deductible. So you’re still gettin’ a lot of coverage, just not quite as much as Plan F.
Comparing the costs
Now let’s talk about money. That’s what everyone really cares about, right?
Plan F costs
Plan F costs more every month. The exact price depends on where you live and how old you are. But let’s say it might cost around $200 a month.
That means you’re payin’ about $2,400 a year for your Medigap coverage. But remember, you don’t gotta pay anything else when you go to the doctor or hospital.
Some folks might pay more or less, dependin’ on their situation. In some places, it could be as high as $300 a month, or as low as $150. It’s important to check the prices in your area.
Plan G costs
Plan G is usually cheaper. Maybe it costs $150 a month. That’s $1,800 a year.
But don’t forget that deductible! You gotta add $240 to that. So your total cost for the year might be $2,040.
Again, these prices can vary. You might find Plan G for as low as $100 a month in some places, or as high as $250 in others. It’s always a good idea to shop around and compare prices.
Which plan is better?
So, which one should you pick? It ain’t a simple answer. It depends on your situation.
When Plan F might be better
If you go to the doctor a lot or have a lot of health problems, Plan F might be better. You don’t gotta worry about payin’ anything extra when you get medical care.
And if you already have Plan F, you might wanna keep it. You can’t get it again if you switch to something else.
Here’s an example: Let’s say you go to the doctor every month and have a couple hospital stays each year. With Plan F, you won’t have any extra costs for those visits. That could save you a lot of money compared to payin’ the Part B deductible with Plan G.
When Plan G might be better
If you’re pretty healthy and don’t go to the doctor much, Plan G might save you money. Even with the deductible, it’s usually cheaper than Plan F.
And if you’re new to Medicare, you don’t even have a choice. You can’t get Plan F, so Plan G is probably your best bet.
Let’s do some math: If Plan G saves you $50 a month compared to Plan F, that’s $600 a year. Even if you have to pay the $240 deductible, you’re still saving $360 for the year.
Other things to think about
There’s more to consider than just money when you’re pickin’ a Medigap plan.
Coverage differences
Plan F and Plan G cover almost the same stuff. The only difference is that Plan G don’t cover the Medicare Part B deductible. That’s the $240 I mentioned earlier.
Both plans cover things like:
- Part A coinsurance and hospital costs
- Part B coinsurance or copayment
- Blood (first 3 pints)
- Part A hospice care coinsurance or copayment
- Skilled nursing facility care coinsurance
- Part A deductible
- Part B excess charges
- Foreign travel emergency (up to plan limits)
So really, the only difference is that $240 deductible. Everything else is the same between the two plans.
Availability
Like I said before, Plan F ain’t available to new Medicare folks. If you turned 65 after January 1, 2020, you can’t get Plan F.
But if you already had Plan F before 2020, you can keep it. You can even switch to a different Plan F if you want.
Plan G is available to everyone, no matter when you started Medicare.
This is important ’cause it means Plan G might have more people in it, which could help keep prices stable over time.
Making your decision
Choosin’ between Plan F and Plan G ain’t easy. Here’s some things to think about:
Your health
If you’re sick a lot or have chronic health problems, Plan F might be better. You don’t gotta worry about payin’ anything when you get care.
But if you’re pretty healthy, Plan G might save you money. You’ll pay less each month, and the deductible might not be a big deal if you don’t go to the doctor much.
Think about how often you go to the doctor now, and how that might change as you get older. If you’re healthy now but have a family history of health problems, that’s something to consider too.
Your budget
Think about how much you can afford to pay each month. If you can swing the higher premiums of Plan F, it might give you peace of mind.
But if you’re on a tight budget, Plan G might be better. The lower monthly cost could make a big difference.
Remember, it’s not just about the monthly cost. You gotta think about your total healthcare spending for the year. That includes your Medicare Part B premium, your Medigap premium, and any out-of-pocket costs.
Your risk tolerance
Some people like knowin’ exactly what they’ll pay for healthcare. If that’s you, Plan F might be better. You know you won’t have any surprises.
But if you’re okay with a little uncertainty, Plan G could save you money. You might have to pay that deductible, but you’ll probably save overall.
Think about how you feel about risk in other parts of your life. Do you like playin’ it safe, or are you okay with takin’ some chances to save money?
What other folks are sayin’
I talked to some people who have these plans. Here’s what they told me:
Plan F users
Mary, who’s 75, said she loves her Plan F. “I don’t gotta worry about nothin’ when I go to the doctor,” she told me. “It’s expensive, but it’s worth it for the peace of mind.”
John, who’s 70, agreed. “I have a lot of health problems, so I go to the doctor a lot. Plan F saves me money in the long run.”
Bill, 68, had a different take. “I’ve had Plan F for a few years, but I’m thinkin’ about switchin’ to Plan G. I don’t go to the doctor much, so I think I’m payin’ too much.”
Plan G users
Sarah, who’s 68, switched from Plan F to Plan G last year. “I was payin’ too much for coverage I didn’t need,” she said. “Plan G is cheaper, and I barely notice the deductible.”
Tom, who’s 66 and new to Medicare, said he’s happy with Plan G. “I couldn’t get Plan F anyway, but Plan G seems to cover everything I need.”
Lisa, 72, told me she likes the flexibility of Plan G. “I can save money most years, but if I have a bad year health-wise, I’m still protected from big bills.”
How to compare plans in your area
Prices for Medigap plans can be really different dependin’ on where you live. Here’s how you can compare plans:
Use the Medicare website
The official Medicare website (www.medicare.gov) has a tool that lets you compare Medigap plans in your area. You just gotta put in your zip code and some basic info.
This tool shows you all the Medigap plans available where you live, not just F and G. It’s a good way to see what other options you might have.
Talk to an insurance agent
A local insurance agent who specializes in Medicare can be really helpful. They know the plans in your area and can help you figure out which one’s best for you.
Just make sure you’re talkin’ to someone who can sell plans from different companies. That way, you know they’re givin’ you all your options, not just the ones from one company.
Check with your state’s insurance department
Your state’s insurance department might have info about Medigap plans in your area. They might even have a price comparison tool on their website.
This can be a good way to double-check the prices you’re seein’ from other sources.
What if you change your mind?
If you pick a plan and then decide you don’t like it, you might be able to switch. But there’s some rules you gotta know about:
Guaranteed issue rights
When you first sign up for Medicare Part B, you have a 6-month period where you can buy any Medigap plan without havin’ to answer health questions. This is called your Medigap Open Enrollment Period.
After that, you might have to go through medical underwriting to switch plans. That means the insurance company can look at your health history and decide whether to sell you a plan and how much to charge you.
Special circumstances
There’s some situations where you might be able to switch plans without medical underwriting. For example:
- If you move out of your plan’s service area
- If your current Medigap insurance company goes bankrupt
- If your current plan mislead you or didn’t follow the rules
These are just a few examples. There’s other situations that might give you a guaranteed issue right to switch plans.
Annual review
Even if you’re happy with your plan, it’s a good idea to review your coverage every year. Prices can change, and your health needs might change too.
You don’t have to switch plans every year, but it’s smart to make sure you’re still in the best plan for your situation.
The bottom line
So, which plan wins? There ain’t a clear winner. It depends on your situation.
If you want the most coverage and don’t mind payin’ more, Plan F might be best. But if you wanna save some money and don’t mind payin’ a small deductible, Plan G could be the way to go.
Remember, you can always change your mind later. If you pick one plan and don’t like it, you can switch during the next enrollment period.
The most important thing is to have some kinda Medigap coverage. It’ll help protect you from big medical bills and give you peace of mind.
Talk to a Medicare counselor or insurance agent if you’re still not sure. They can help you figure out which plan is best for you.
And don’t forget to review your coverage every year. Your needs might change, and so might the prices of these plans.
Pickin’ a Medigap plan ain’t easy, but it’s important. Take your time, do your research, and choose the plan that feels right for you.
