Medicare Supplement Plan G: A Great Way to Save Money
We’ve recently discussed how important it is to do a yearly or bi-yearly review of your Medicare Supplement Plan with your insurance agent. This could save you hundreds of dollars that can be used for much more valuable things. While you are in the saving mode, why not take it a step further and look at some similar supplement plans that can save you even more than staying with your current plan type.
Medicare Supplement Plan F tends to be the most popular plan around these days and for good reason. Plan F covers virtually every Medicare approved expense that Medicare does not cover. This is called 1st dollar coverage. What this means to a senior is a lot of certainty because aside from their monthly insurance bills, they can be assured that they are covered 100%. This piece of mind comes at a premium, however, as insurance companies expect seniors who have $0 co-pays to over utilize their insurance.
To better explain 1st dollar coverage and why insurance companies will charge you extra for it, let’s use a quick analogy. Let’s say, for instance, you stubbed your toe on the wall. A person who has a co-pay to go to the doctor may try to ice it before running to the doctor’s office. A senior who has no co-pay, however, will likely run to the Urgent Care or doctor’s office without blinking an eye. These unnecessary visits can really add up for the insurance company. Having no co pays just makes it too convenient for someone to run to the doctor even when an Aspirin, Band-Aid, or ice may have done the trick.
This is where plan G comes in. Plan G does not have 1st dollar coverage but the only difference between plan F and Plan G is plan G does not cover the Part B Deductible which is currently $147 a year. This means if you go to the doctor with Plan F you will have a $0 co pay from day 1. If you go to the doctor’s office with plan G, you will pay your 20% co-pay for doctor’s visits but only up to $147 a year and then you will be covered 100% for all Medicare approved expenses just like you would be with plan F.
By simply paying your $147 each year, you can save money in insurance premiums. And these savings can add up to even more as you get older as insurance companies tend to raise the prices on Plan F more than they raise the prices for plan G because, as discussed, people with Plan F will use their plan more often resulting in the need for the insurance companies to raise the prices at a higher rate.
To further illustrate the savings you can expect, let’s look at some examples of price differences between plan F and G. For a 68 year old male in San Diego County, one of lowest priced Plan F is $150.09. This same customer could get a Plan G for $132.84 per month. This is a savings of $207 a year. If you take out the extra money you will be spending at the doctor’s office you are still ahead $60 for the year. If you happen to not meet your deductible because you didn’t have to go to the doctor much, you will save even more money. But the other thing to remember is as you get older, your premium will also go up. This is where the real savings is at for plan G since premiums go up faster for plan F. A 75 year old male, for instance, would pay $191.28 for plan F and only $170.53 for plan G. This saves $249 for the year simply by paying your own $147 deductible.
At the end of the day, plan G is a great option for a senior who wants the peace of mind of having great coverage and very little out of pocket expenses. If you want to find out how much you can save by switching your health plan, give us a call at 1-855-731-8888, click here to chat online now, or email us. We would be happy to find the best plan for your situation and make sure you save money and stay happy with your coverage for years to come.
By Theresa Struckmeyer
Senior Health Plan and Finance Specialist
MP Insurance Solutions is a Senior Health Care Insurance Brokerage. We specialize in Medicare Supplement/ Medigap plans, Medicare Advantage/Medicare Part C, Prescription Drug Plans/Medicare Part D, Senior Term Life Insurance, Final Expense Insurance, Guaranteed Income Annuities, and Dental and Vision plans. We specialize in helping seniors in Southern California including Los Angeles, Riverside, San Bernardino, San Diego, and Orange County California.