Medicare Supplement Plan F: Everyone is doing it, but should you do it?
The Medicare F Supplement Plan is the most popular Medicare Supplement Plan in most areas of the country. Most insurance companies that sell Medicare supplement plans and complementary agents emphasize Plan F. However, is it always the best option for you?
How does the plan compare to lower level plans like ‘D’ and ‘G’? Plan F is usually the most expensive of Medicare supplement plans (except Plan J). With lower-level plans, you can sometimes save up to $20-30/month, which may seem small when viewed monthly, but can result in very significant savings over the course of a year.
It is easy to compare Medicare supplemental plans between insurance companies because the plans are standardized. The benefits of Plan F will be the same regardless of which company you take a look at.
Once you find the lowest premiums for these two plans, you must do the calculations. These are mainly numbers, because the probability of requiring outpatient services (Part B) is quite high. Most years, you will probably need services and will have to pay the full deductible.
The difference between annual awards is the key. If the annual Plan F premium is $ 147 or more than Plan G, you should choose Plan G. If you are smaller, choose Plan F. The exception is if you have a crystal ball and know that you never need outpatient services for the year.
You should also choose a Medicare prescription drug plan (average cost about $ 40-70/month and continue paying your Medicare Part B premium). The cost of the plan will increase over time. If you can pay for a supplemental policy, you should enroll right away, preferably when you first qualify for Medicare and you do not possess any other authentic medical insurance. When you are eligible for Medicare for the first time, you do not need to sign up, the cost is lower, and your acceptance is guaranteed. The longer you wait, the more you risk not being able to pay for a plan or qualify for one. Although it is more expensive than a Medicare Advantage policy, the health insurance protection given by the Medicare supplement is much greater if you sign up for the Medicare F supplement plan.
Plan F is one of only three Medigap standardized plans that provides full coverage of Part B over-costs. Part B over-costs occur when a doctor or doctor DOES NOT accept Medicare “attribution” (or amount paid by Medicare for certain services and procedures).