Plan G Looks Even Better

Since 1991, the Plan F has dominated the Medicare Supplement market.  It is easy to understand why; Plan F pays 100% of everything that Medicare approves.  However, in the last few years, Plan G has been quietly gaining popularity among consumers.  The difference between the two?  Plan G does not pay the Medicare Part B deductible while Plan F does.  So, how much is the Medicare Part B deductible you may ask.  In 2011 it was $162.  By taking on this additional liability, insurance companies are willing to drop the premium - sometimes as much as $25 per month.  Doing the math it is easy to see that you can save money in the long term with a Plan G.

• $25 monthly savings x 12 months = $300 annual premium savings
• $300 annual premium savings - $162 annual deductible = $138 net annual savings

Over the last few years the Medicare Part B deductible has risen each year.  Consequently it came as a surprise to see that in 2012 the deductible was reduced to $140.  Whatever the reasoning that led to this decision, it has turned out to make Plan G an even more attractive option. 

• $25 monthly savings x 12 months = $300 annual premium savings
• $300 annual premium savings - $140 annual deductible = $160 net annual savings

While we're not quite sure yet how this helps to keep Medicare solvent, we'll continue to take it one change at a time and make the best decision we can with the rules we have.  And with this change, Plan G looks better than ever.