Is Medicare Plan G a Good Alternative to the Discontinued Plan F?

Is Medicare Supplement Plan G a good alternative to the discontinued Plan F?

The Medicare Supplemental insurance policy named Plan F is limited to Medicare beneficiaries who became eligible for Medicare before January 1, 2020. Congress phased out this plan in 2020 as part of the Medicare Access and CHIP Reauthorization Act of 2015¹. If you were eligible for Medicare before the start of 2020, and you enrolled in Plan F, you can keep the plan. If you are eligible for Plan F and have not used it, but did not enroll at that time, you may still be eligible for enrollment in Plan F.

Anyone eligible for Medicare after January 1, 2020, is not eligible to enroll in Plan F.

Of the several Medicare Supplemental insurance plans to choose from, the Medicare Supplement insurance policy named Plan G is most similar in coverage to Plan F².

Both Plan F and Plan G cover the following same benefits:³

• Medicare Part A coinsurance and hospital costs up to an additional 365 days after Medicare benefits
• Medicare Part B coinsurance and copayment
• Medicare Part A deductible
• Medicare Part A hospice care coinsurance or copayment
• Medicare Part B coinsurance or copayment
• Medicare Part B excess charges

The difference between the plans is that Plan F covers the Medicare Part B deductible. Plan G does not cover the Medicare Part B deductible. No other Medicare Supplement insurance plans sold to anyone who became eligible for Medicare on or after January 1, 2020, covers this deductible.

Plan F has a deductible for Medicare Part B of $233 in 2022.²

What is the Cost Difference?

If you are eligible for Medicare Supplement Plan F, it still may be more expensive than what you would pay with Plan G. Calculate the cost.

Two items for review on Plan F:

1. To determine whether your Plan F coverage is more expensive than what you might pay under Plan G, you should take your monthly rate total for a year's worth of premiums and subtract the deductible paid on Plan F from this amount.
2. You should then determine the monthly rate of Plan G for a year’s worth of premiums and add the deductible paid under Plan G to see the total amount.

Example: Your deductible on Plan F covers the $233 costs. Divided by 12 months this rate is $19.42 per month. The monthly premium on Plan F is $150.00 a month or $1800.00 per year. Plan F will be a cost of $1800.00 annually to purchase as a policy.

Plan G has an annual deductible of $233.00, and the monthly premium is $100.00 per month or $1200 per year. The annual deductible for Medicare Part B and the premiums each month for Plan G will be a cost of $1433.00 annually to purchase as a policy.

The difference in this example is $367.00 more for Plan F.

The example above is for illustrative purposes only and is not a guarantee of deductible or premium amounts.

If you are thinking about buying a Medicare Supplement Plan G, consider the following:

If you would like to switch, consider other plans that best fit your needs.⁴

1. Compare all the coverages for hospital stay, travel and out of pocket limits.
2. Not every healthcare insurance company will cover every Medicare Supplement insurance plan you seek.
3. What are the long-term costs of the premiums you pay? Will they continue to rise, or can you lock them in?
4. Look for competitive rates on the same plans.
5. Both Plan F and Plan G have a high deductible option which requires first paying a plan deductible each year before the plan begins to pay.³

It is best to find a licensed insurance agent and or tax accountant who has knowledge of Medicare Supplement benefits to assist with the right plan for you.

Sources:

1. https://www.cms.gov/Medicare/Quality-Initiatives-Patient-Assessment-Instruments/Value-Based-Programs/MACRA-MIPS-and-APMs/MACRA-MIPS-and-APMs
2. https://ncoa.org/article/what-is-the-medicare-deductible
3. https://www2.unitedamerican.com/medicare-supplement-policies
4. https://www.medicare.gov/supplements-other-insurance/how-to-compare-medigap-policies