In 2015, congress discontinued Medicare supplement plans F and C for anyone eligible for Medicare Part A after January 1, 2020. What then is your alternative to Medicare Plan F and C if you are going onto Medicare now?
While this will not affect anyone who currently has a Plan F or C policy, it could possibly affect your future premiums.
This isn’t the first-time congress has taken Medicare supplement plan options away, in 2010 congress removed Plans H, I, and J.
If we apply some logic to this situation and assume that younger people will no longer be able to purchase Plan F and Plan C, then the average age of a Plan F and C policyholder is only going to go up.
As people age, we know that statistically they have more health problems which costs health insurance carriers more money.
We also know that each year these same carriers look at their total costs and based on their revenues and expenses, the state Medicare boards allow the carriers to increase their premiums to stay comfortably profitable.
Now, you have a choice between staying with Plan F or C but the premium may increase faster than other plans as the participants age out of the program.
It seems to me it would make sense to at least look at what the alternative options are?
There are a lot of great plans available but the three most popular plans to replace F and C are Medigap plans G, N and D, which we will discuss further below.
What Is The Difference Between Medicare Plan F And G?
The most significant difference between Medicare Plan F and G is that effective January 1, 2020, if you were not eligible for Medicare Part A before the cut off date, you will not be able to purchase Plan F. It is expected that Plan G will take up the crown for the top chosen supplement plan over the next couple of years as more people select the best alternative to F. Plan F and G’s sole difference is that F policyholders have their Medicare Part B deductible included in their premiums. This small difference is what makes Plan G the best alternative to Medicare Plan F.
| Plan | Premium | Part B Deductible | Annual Cost |
|---|---|---|---|
| Plan G | $130.00/month | $233/year | $1,790.00 |
| Plan F | $168/month | Included | $2,016.00 |
Sample quote based on 65 Year Old Male Non-Tobacco User in Hagerstown, Maryland.
However, if you have a G plan, you will have to pay the Part B deductible before Medicare starts paying its portion of your medical bills. The cost of the Medicare Part B deductible was $203 in 2021 and $233 in 2022.
“Part B monthly premiums have risen by an average of 7.7% per year since 1966.”
According to Sean Williams of The Motley Fool who has conducted a comprehensive study form 1966 to 2017 of Medicare Part B deductible increases. Even considering the average Part B deductible annual increase, we have seen Plan G premiums well below Plan F premiums in some states. To find out if switching to an alternative Medicare Supplement Plan is right for you, call a Senior Benefit Services Expert today, toll-free at 1.800.924.4272 or get a quote below.
Medicare Plan N Vs Plan F
Medicare Plan N is an attractive policy because the premium costs are lower than Medicare Supplement Plan F but still with a lot of coverage.
Medicare Supplement Plan N covers just about everything that Plan F covers.
Plan N Medical Coverage Include:
- Medicare Part A hospital coinsurance and hospital stay costs up to 365 days after you exceed the number of days Medicare will cover
- Medicare Part A hospice care coinsurance
- Medicare Part A deductible
- Medicare Part B coinsurance costs (however, you must pay a co-payment for doctors’ visits and emergency room visits)
- First three pints of blood
- Skilled nursing facility coinsurance
There are a few additional costs that you will have to pay in addition to the Plan N premium:
- Medicare Part B Deductible
- Medicare Part B doctors excessive charges
- You must pay a co-payment of up to $20 for Doctors visits
- Emergency Room visits require a co-payment of up to $50
This plan seems like a good choice for people who don’t visit the doctor very often.
To find out if switching to an alternative Medicare Supplement Plan is right for you, call a Senior Benefit Services Expert today, toll-free at 1.800.924.4272 or get a quote below.
| BENEFITS | PLAN N | PLAN F |
|---|---|---|
| Part A Hospital |
Co-InsuranceYESYES365 Hospital Reserve DaysYESYESPart B Co-Insurance /Co-PaymentYESYESBlood Benefit
(First 3 Pints)YESYESHospice
Co-Insurance /
Co-PaymentYESYESSkilled Nursing Facility Co-InsuranceYESYESPart A DeductibleYESYESPart B DeductibleNOYESPart B
Excess ChargeNOYESForeign
Travel Benefit80%80%Out Of Pocket LimitN/AN/A
Medigap Plan D Good Alternative Over Plan C
Not many people have Plan C or even know that it is also being discontinued with Plan F for new Medicare enrollees starting January 1, 2020.
Just like Plan F, it is also a ‘First Dollar’ policy because the Medicare Part B deductible is included in the premium.
Consequently, the ‘First Dollar’ spent for your Doctor’s medical coverage comes out of Medicare’s pocket and not yours.
Congress believes that by requiring new enrollee’s to pay their own Medicare Part B deductibles will stop people from going to the doctor for minor illnesses.
Medicare supplement plan D provides identical coverage to plan C except that it does not cover your Part D deductible.
If you are enrolled in Plan C, you can stay in the plan for as long as you like.
Medicare Supplement Plans C & D |
||
|---|---|---|
Benefits |
Plan C |
Plan D |
|
Part A Hospital Co-insurance |
Yes |
Yes |
|
365 Hospital Reserve Days |
Yes |
Yes |
|
Part B co-insurance / co-payment |
Yes |
Yes |
|
Blood Benefit (first 3 pints) |
Yes |
Yes |
|
Hospice coinsurance / co-pay |
Yes |
Yes |
|
Skilled Nursing Facility co-insurance |
Yes |
Yes |
|
Part A deductible |
Yes |
Yes |
|
Part B deductible |
Yes |
No |
|
Part B excess charge |
No |
No |
|
Foreign Travel Benefit |
80% |
80% |
|
Out-of-pocket limit |
N/A |
N/A |
Taking Action
If you are already covered with Plan F there isn’t any action you need to take if you are happy with your premiums.
It is ok to be usure of the best step to take. Let us provide you with a solid alternative to Medicare Plan F and C.
Our agents will not pressure you into something you do not want or need.
Pick up the phone and speak with one of our experts today toll free at 1.800.924.4272 or get a quote below.