Should You Switch From Medicare Plan F to Plan G?
If you’re thinking about making the switch from Plan F to Plan G, consider these key points:
- Plan G provides coverage identical to Plan F, excluding the Medicare Part B deductible.
- In 2024, the Medicare Part B deductible is $240 per year.
- Plan G premiums are often significantly lower than Plan F premiums.
In a nutshell, If your yearly premium savings for Plan G are greater than the Medicare Part B deductible amount, then a plan switch may be the best choice.
Is Medigap Plan G Better Than Plan F?
Plan G has emerged as a popular Medigap plan option for many people as it has a reputation for being more reliable than Plan F. In addition to having significantly lower monthly premiums than Plan F, Plan G is expected to have more stable rates over time.
Since 2020, Plan F has been gradually phasing out, so its premiums are expected to continue increasing.
How Much Cheaper Is Medigap Plan G?
We’ve compared Plan F and Plan G in various states to see how the premium costs differ between the two plans:
| Medigap Plan | Premium Range |
|---|---|
| F | $151 - $211 |
| G | $124 - $166 |
| These sample quotes are for a 65-year-old male non-smoker in Pennsylvania zip code 15005, without any household discounts. | |
| Medigap Plan | Premium Range |
|---|---|
| F | $206 - $245 |
| G | $174 - $214 |
| These sample quotes are for a 65-year-old female non-smoker in Florida zip code 32503, without any household discounts. | |
| Medigap Plan | Premium Range |
|---|---|
| F | $116 - $188 |
| G | $101 - $148 |
| These sample quotes are for a 65-year-old female non-smoker in Texas zip code 78665, without any household discounts. | |
| Medigap Plan | Premium Range |
|---|---|
| F | $155 - $196 |
| G | $136 - $160 |
| These sample quotes are for a 65-year-old male non-smoker in Arizona zip code 85201, without any household discounts. | |
Premium Analysis:
According to this data, average premiums for Plan F are 17% higher than Plan G.
When Can You Switch From Plan F To Plan G?
You can switch to a different Medigap plan anytime.
However, if you switch outside specific set timeframes, insurance providers may assess your pre-existing conditions and overall health to decide on your application.
This process, known as medical underwriting, could result in higher premiums or even denial of coverage.
To avoid these potential complications, it is best to switch during these periods:
- Medigap Open Enrollment Period: Annually from October 15th to December 7th
- Medigap Free Look Period: 30 days from the date your Medigap policy begins
- Special Circumstances: Allows policy changes without medical underwriting in certain situations like loss of healthcare coverage
What Happened to Medigap Plan F?
Starting January 1st, 2020, Plan F was no longer available for new Medicare enrollees. This was because of new legislation passed by Congress in 2015, which prevented the sale of Medicare Supplement plans that covered the Part B deductible to new Medicare beneficiaries.
The purpose of this change was to encourage more responsible use of healthcare services by ensuring that beneficiaries would have some out-of-pocket costs. Those already enrolled in Plan F before 2020 can keep their plan if that best suits their needs.
Bottom Line
Plan G has become a preferred choice for many folks due to its lower monthly premiums and expected steadier rates in the long run.
Switching plans might be wise if your yearly premium savings with Plan G are higher than the Medicare Part B deductible.
We always recommend speaking with a licensed insurance agent to help you understand if switching plans is right for you. We’re happy to help find the best fit for your healthcare needs.
Sources: Medicare.gov | Forbes | NCOA
FAQs
Both plans fill in the gaps in Original Medicare for costs such as deductibles, copays, coinsurance, and foreign travel emergencies. However, only Plan F covers the Part B deductible.
Plan G does not include the Part B deductible or services not covered by Medicare.
Medicare Supplement plans F, G, and N are popular Medigap plans with the highest enrollment rates across the country.
