As 2020 edges near closure and 2022 is around the corner, based on the awful results of the COVID-19 pandemic, with many weeks being spent in the hospital, it’s definitely time to consider a Medicare Supplement plan, but which one is the better choice for seniors?
Plan G vs F
Previously, the choices pretty much surrounded on a choice of Plan G vs F. Plan F was the overwhelming favorite because it offered the largest degree of coverage. Plan F covered 100 percent of:
- Medicare part A hospitalization co-insurance and hospital costs, including an additional 365 days hospitalization not covered by Medicare
- All Medicare Part B coinsurance and copayments.
- Three Pints of Blood
- Part A Hospice care coinsurance and copayments.
- Skilled nursing home coinsurance.
- All Medicare part A deductibles
- All Medicare part B deductibles
- All Medicare part B excess charges (charges a doctor will charge over what Medicare will pay.)
- Foreign travel expenses, typically up to 80 percent of the plan limits.
Because Plan F is the most worry-free Medicare plan, it was indeed the most popular. The primary reason that Congress is phasing out Plan F is that from the moment they set foot in a doctor’s office, with Plan F there are zero expenses. Medicare picks up 80 percent of the bill and the Plan F takes care of the other 20 percent. In order to reduce costs, Congress is essentially phasing out Plan F to reduce the instances of people going to the doctor for even minor concerns which drives up costs overall. However, if you already have a Plan F, you can continue it in 2022. New enrollees to medicare, however, are not allowed to purchase Plan F. How long Plan F continues to be in existence is still debatable, but for new enrollees, Plan F is gone.
Plan G vs N
For those not able to enroll in Plan F, by far the next most popular plans are Plan G and Plan N. Plan G covers virtually everything that Plan F does with the exception that Plan G does not cover the Part B deductible. Each year the Social Security Administration determines the deductible, the portion that you must pay for part B.
In 2020, that amount was $198. In 2019, the Part B deductible was $185. The deductible for Part B for 2022 has not been determined as of yet, but it’s safe to say, it will go no further up than $15 or so. Since those on a Part F plan would sometimes get one for less than the total deductible for Part B, it’s no wonder Part F, besides convenience was so popular.
Still, however, with the part be deductible amounting to around $16.60 cents a month, the loss of Part F to many is not that big of a deal. And generally, Part G is significantly cheaper than Plan F.
Even better for some, is a high-deductible Plan G. The plan doesn’t kick in until you have paid all of the Part A and Part B deductibles, but many find they can get a high-deductible Plan G for $70 to $100 less. And if they are healthy and don’t go to the hospital at all during the year, saving $70 a month and then paying the Part B. Deductible makes great financial sense.
How does Plan G vs N work?
Plan N offers most but not all of the benefits of Plan G. First, with Plan N, doctors’ excess charges are not covered. If you go to a doctor and the bill is $150, but medicare only pays $120, plan G will cover those other $30.
The second and most important reason plan G is generally better is that plan G covers co-pays. Under plan N, you’ll pay $20 in copay benefits, and that can certainly add up if you see the doctor a lot. Naturally, plan N is cheaper than plan G, but most people seem to feel plan G is the better option.
Medigap Plan G Benefits 2022
As noted, Medigap Plan G Benefits 2022 include:
- Medicare part A hospitalization co-insurance and hospital costs, including an additional 365 days hospitalization not covered by Medicare
- 3 Pints of Blood
- Part A Hospice Care coinsurance and copayments.
- Skilled nursing home coinsurance.
- All Medicare part A deductibles
- All Medicare part B deductibles
- All Medicare part B excess charges (charges a doctor will charge over what Medicare will pay.
- Foreign travel expenses, typically up to 80 percent of the plan limits.
You will note that only the Part B deductible is not paid for. Also, rates may vary depending on the state in which you reside. For instance, Colorado Medicare supplement plans may vary from those living in California.
If you have any questions about Medicare supplement plans, give us a call at 855-249-0191 for a consultation and free quote comparison. One of our experienced insurance agents would be happy to assist you.