For years, conventional wisdom in senior insurance said that if you were going to purchase a Medicare Supplement plan, Medigap plan F was the way to go. But is purchasing Plan F now a smart move considering it will no longer be issued to new enrollees as of 2020? Should You Still Enroll in Medicare Supplement Plan F?
What is Medigap?
Medigap is actually a nickname for all of the lettered Medicare Supplement plans. They are designed to pay some or all of the fees not covered under Original Medicare. Medigap pays the fees or “gaps” that Original Medicare typically requires you to pay out of pocket, such as copays, coinsurance and deductibles. These costs can really add up. Should You Still Enroll in Medicare Supplement Plan F?
Difference between Medicare Plan F and G:
Each lettered Medigap plan is designed to pay for different gaps in coverage. Plan F is considered the gold standard because it offers everything that Medigap is legally allowed to cover at a historically great price. Plan G, America’s second most popular plan, covers everything that F does except for the Part B deductible which currently is $183.
There is some speculation that Plan F’s monthly premium will increase after 2020 if new younger members are no longer allowed to enroll. Since no one knows what will take place in the future, how do you choose between the two?
We suggest starting with the current price. Many insurance companies now offer Plan G at such a great price that you can save hundreds of dollars annually over plan F. If you can find a plan G that saves you more than $183 a year over F today, it’s most likely a smart move to go with it now.
If you are unable to find a competitively priced plan G, then go with Medigap plan F. You don’t want to overpay for G just because we are unsure about the future of plan F prices.
One final note: Not all Medigap plan prices are posted online, so check with a licensed insurance agent before you pull the trigger on Medigap to make sure you have the best-priced plan in your area.
About the Author: Amy De Vore
Amy is a licensed independent agent. Senior65 is dedicated to helping seniors understand Medicare and enroll in appropriate senior insurance health plans. Should You Still Enroll in Medicare Supplement Plan F?