Medicare has 10 lettered supplement plans from A through N. In this section, we will discuss the 3 most popular plans which are, of course, plans F, G & N. Before we dive in and check out the most popular Medicare supplement insurance plans, I would like to discuss a few important Medicare supplement facts. Did you know you can change your Medicare supplement plan any time of the year? This is absolutely true as long as you qualify based on your health.Something else to keep in mind. Different insurance companies charge different premiums for the same exact policy. As you shop for a policy, be sure you’re comparing the same policy (for example, compare Plan G from one company with Plan G from another company). The difference in premium could be $500 to $700 a year or more for the exact same plan! So, plan F is Plan F, plan G is plan G, no matter what company you choose. The most significant difference is the price you may be paying.We hear seniors say they "love their current plan because it pays all the bills." What many people do not realize is that every plan must pay claims exactly the same way. Medicare determines how a plan pays, NOT the insurance company. And if your doctor or hospital accepts Medicare assignment, then they will accept your Medicare supplement plan from ANY company. The only thing that will change is the price you are paying. And you could save several hundred dollars or more a year.
Now let's jump into Medicare supplement plans F, G & N....
Medicare supplement Plan F, often called the "Cadillac" of Medicare supplement plans, has traditionally been the most popular Medicare supplement plan. Medicare supplement Plan F will pay all Medicare approved charges not covered by Medicare Part A and Part B. Plan F pays for Medicare approved:DeductiblesCo-paysCo-insuranceIf your healthcare costs are approved and paid for by Medicare, your Plan F will pay the remainder of the bill. This plan is great for people that NEVER want to see a bill. However, this comes at a price. Keep in mind that you are essentially paying the insurance company to administer your Part B deductible(currently $183.00 for 2017). When looking at the premiums for plan F, in some cases people may be paying $500.00 a year or more just to have the company pay their Part B deductible for them. Plan F also tends to have larger rate increases. As of Jan. 1st, 2020, Plan F will no longer be sold. If you have Plan F, you be able to keep Plan F. Many people in the industry are speculating that with no new beneficiaries purchasing Plan F, we may see a sharp rise in premiums. This is okay if you are healthy and can qualify medically to move to Plan G or Plan N. But this may not be so good for those with health conditions that prevent them from making changes. Now may be the time to look at other options.
Which brings us to...
Medicare supplement Plan G is a great alternative to Plan F. Medicare supplement Plan G has been gaining popularity for some time now and will continue to become more popular as we approach 2020. What is so great about Plan G? Plan G pays EXACTLY the same as Plan F with one exception. You are responsible for paying your Part B deductible, currently $183.00. Otherwise, everything else is exactly the same. This comes typically at a significantly lower premium, saving individuals 20%, 30% or more on their monthly Medicare supplement insurance premiums. Plan G also has historically seen smaller rate increases in many cases from many companies. In many states Medicare supplement Plan G rates are actually DECREASING. Insurance companies want Plan G business and are competing with each other to offer the best rates on Plan G. One insurance company reduced Plan G premiums in 18 states…ranging from 6% to a 22% reduction. So if you are willing to pay your Medicare Part B deductible in exchange for the exact same benefits and lower premiums, Plan G may be the right plan for you.
Now we will take a look at Plan N.
Medicare supplement Plan N, along with Plan G, has been gaining popularity lately as well. Medicare Supplement Plan N offers great coverage and many people are enjoying very low premiums for Plan N while it still maintains great benefits. Plan N is very similar to Plan G, except for a few minor differences.
With Plan N, you still must pay the annual Part B deductible yourself ($183.00 for 2017) After you meet this deductible you might have a co-pay each doctor’s visit on Plan N. This can be UP TO $20.00, but never be more than $20.0. If you visit the emergency room on Plan N and you’re not admitted, you may have to pay a $50 co-pay Plan N does not cover Part B excess charges. This happens when a doctor accepts Medicare patients, but not Medicare "assignment".So you can see there could be some small out-of-pocket costs. In exchange for this however, on Medicare Supplement Plan N you will have lower premiums than both Plan F or G which could result in substantial savings. It is simply a matter of what you are comfortable with and what your budget is.
Now that we have discussed the differences of Medicare supplement Plan F, G & N, you may have questions about which plan and which company are right for you. Please give us a call @ 1-800-791-6850 and we can answer your questions and provide you with your options. We look forward to hearing from you soon!!