Over the last few years the Medicare Supplement market has changed dramatically. The addition of more standardized plans have created confusion on which plan fits best and why. For years, the highest standard of coverage and most popular plan was Plan F. However, over the past few years Plan G has been on the rise in popularity. The reason for the rise is the fact that the premium vs. benefit difference between the two plans is measurable. Typically, Plan F would pay all of the remaining charges for a Medicare approved charge. Plan G would pay all remaining charges other than the annual Medicare Part B Deductible, which is $183 for 2017. Therefore, if the premium difference between Plan G and Plan F is greater than $183 annually, than you would save money by selecting Plan G.
Plan F Annual Premium = $2050.00
Plan G Annual Premium = $1447.00
The Annual premium difference = $503.00
With Plan G, you would be responsible to pay your Medicare Part B deductible to your providers so lets subtract that bill from the savings.
$503.00 premium savings - $183.00 Part B deductible = $320 per year savings by selecting Plan G over Plan F.
The savings does vary from company to company, but it is typical for the insurance company to charge more than the Part B deductible per year for Plan F over Plan G.
If you are considering Plan F, think twice. What is the sense in giving the insurance companies more than $183 to pay $183 on your behalf? Plan G has all of the same benefits as Plan F other than the Part B deductible, but costs less. Give one of our agents a call to help you save your hard earned dollars or watch the video where I explain the difference between the two plans. This video shows an effective to save money on your Medicare Supplement Plan in Illinois. It describes how you can and why you should utilize these cost saving options to save yourself hundreds of dollars per year.
Andrew S. Cosentino
ADH Insurance Agency, Inc.