In Today’s Episode, Catherine is asking us to explain to her the differences between supplement plans F and G. There is one major difference that will be a huge deciding factor for you. Watch here to learn:
Here is the rest of the transcription:
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Wendy: Right. So yes let’s talk about that, let us do a little math, because really the only difference between a Plan F and a Plan G is that deductible. Is that true?
Tripp: Yes the Part B deductible…so Plan F is really a Plan G that pays the deductible for you. So don’t think that Plan F is doing you this huge favor, because what happens is the Part B deductible is going from one hundred and sixty six dollars to one hundred and eighty three dollars, starting January 1st 2017.
So what happens is a Plan G doesn’t pay that Part B deductible, so you are responsible for that one time. So that is not hospital, that will fall under Part A; but Part B would be like doctor visits, X rays, MRI’s, things like that.
So once you have met, let us say it is January the 3rd and you go to the doctor and they do whatever and your bill is one hundred and eight three dollars, well your deductible, your Part B deductible is met for the whole year, it is done. So then guess what? Everything else from that point forward your Medicare Supplement will pay for that.
So with part F what they are essentially doing is it they are charging you, they are paying the deductible for you but they are charging you a convenience fee for doing that, as if you can’t figure out how to do that on your own.
But don’t be mistaken, their premiums are considerably higher…
Wendy: Much more than the deductible…
Tripp: …every month than a Medicare Supplement Plan G. And so that is why when we do the math, and we will do it for each person individually of course.
But I have got a great example, we enrolled Barbara the other day and she was asking the same exact question, so we did the math and she had already been on the Supplement.
So what happened was we put her on a Plan G, it was saving her sixty dollars a month from her current Plan F that she was on, a different carrier, but again F to G, so we switched her from F to G she is saving sixty dollars a month.
So if you multiply that times twelve, that is seven hundred and twenty dollars savings for the year starting in January 2017. Well you take out that one eighty three deductible that she is responsible for, that she may not even hit, if she doesn’t go to the doctor she won’t even hit that,but let’s say that she does, you take out the one eighty three and you are left with I thinklike five hundred and thirty seven dollars in her pocket for the rest of the year by switching from a Plan F to a Plan G.
So it usually is considerably more, I have seen it as high as eighty to a hundred and ten dollars a month from an F to a G.Just realize that you are smart enough to do that little deductible one time, once it’s met, it’s met.
We have also had it people call in and go “But what if I switch carriers and do another supplement near the end of the year do I have repay that part B deductible?”
Once it’s met, it’s met, it’s met through Medicare, so they have got it on file so they are not going to hit you two or three times if you are changing plans.
But again if you have got a Plan F, or you at hearing all about Plan F as the best plan, it just depends and that’s why we need to look at the math, the math never lies and we will just run the numbers like we did in Barbara’s case, she comes out to the good of about five hundred and thirty seven dollars a year next year by having a Plan G where she pays the one time deductible of a hundred and eighty three dollars; yes, she is responsible for that.
But again, I have had other people since we have talked about to this, they say “It doesn’t matter to me, I don’t want any deductible I will pay more, I just want the Plan F.”And that is whatever, I just sharethe options and what is available to you.
Wendy: Well it just sounds to me like it is really what is important to you. If you are willing to pay a little more to not have to think about it, if you, like you said, a convenience fee, if that is important to you then go with the Plan F.
Wendy: Unless it is after 2020.
Tripp: And again, I represent about thirty different carriers that do Medicare or offer Medicare Supplements, so I can still find you the cheapest Plan F of the cheapest Plan G, it doesn’t matter if it is North Carolina or any other state, we pretty much write business in just about all of them, there is a few exceptions.
So it really, like Wendy is saying, peace of mind, whatever you feel good about.
Wendy: Right, but what we are finding as Tripp mentioned, you are writing more and more Plan G ‘s more than Plan F’s….
Tripp: Probably four to one, I would imagine, so eight out of ten.
Wendy: I think it is because retirees are realizing and becoming more savvy with information out there and realizing “Hey if I can just do a little bit of this math in my head I can make sure I am getting the best deal.”
Because I don’t know about you guys but I love to feel like I am getting a good deal, when I go shopping all that kind of stuff, it just feels good to know that you are making the smartest, savviest decision possible on what you are purchasing.
So it is the exact same with the plan G, that is the smartest by way of numbers, decision that you can make in most cases.
Tripp: I mean, really every time, I don’t want to pigeon hole myself, butit is funny because when we went through the math with Barbara her first response was “Now I can buy the grandkids more presents with the five hundred and thirty seven dollars that I am not just to giving toan insurance carrier. I can pocket that and do what I want.” And what she wanted to do was to bless her grandkids more.
So you can do whatever you want, you can travel, you can pay up some debt, you can give the grandkids presents, it doesn’t matter it is your money. If you go with the Plan F, just realize that you are paying for them to pay the deductible for you and they’re going to charge you kind of a built-in a convenience fee to do that.
That’s it, that’s the only difference. So a Plan F is a Plan G that actually pays that deductible for you, other than that it is the same plan.
Wendy: And I think the biggest take away in this is that both of those plans are standardized, meaning they are the same.
Hopefully that answers your question Catherine and kind of clarifies exactly what a Plan F and a Plan G is and why you may want to choose one versus the other.
So you can always check us out at our workshops we host them a couple times out week and it really dig deeper into more information about this type of thing. We only have so much time on these videos.
So definitely register for that, there should be a link somewhere below, we would love to have you. And as always you can call us if you have any questions. So we will see you at next time. Take care.
Trip: See you soon!
Medicare For Her
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