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.
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.
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.