Medicare Supplement Plan G vs F vs N (aka Medigap Plan G & What’s Changing?)


Medicare Supplement Plan G, Medigap Plan G, Plan G, Plan N, Medigap Plan N In this video I am going to talk about Medicare supplement Plan G For most people turning 65, Medicare supplement Plan G offers the best value today. However, there are changes in the relationships between Medicare supplement Plan G, Medigap plan F and Medigap Plan N that you should be aware of before you make a decision. In this video, I’m gonna show you these relationships and how they’re changing and how they may impact your decision-making as you decide if the Plan G Medicare supplement is right for you. In addition, I’m going to compare the differences between the two most popular Medicare supplement plans today; that’s Medicare supplement Plan G and Plan N. Also I have a special treat in this video that I normally reserved for my in-person client meetings only. Its information on how the insurance companies can raise prices on their Medicare supplement plans without it showing up in their price history. So that when we research or you research a plan and you’re looking for a past history price increases it won’t show up. I’m gonna talk about how they do that and what you can do about it later on in this video, all coming up! MedigapSeminars.org an Independent Medicare agent / independent Medicare insurance broker. With Matthew Claassen. Before we get into today’s video on Medicare Plan G, you should know that whether you’re new to Medicare and researching Medicare for the first time or you’ve had Medicare and you just have questions, you are going to find the answers to those questions on my website MedigapSeminars.org. I created a series of educational videos on Medicare so that you can learn all you need to know, on demand, on your schedule. These videos take you from how to enroll in Medicare to talking about the different types of Medicare plans, to how to identify which Medicare supplement plan is right for you, for your budget, and for your needs. And, if you have a question you can’t find answered on the web site, just click theContact Usform. In theContact Usform, ask your question. A licensed, knowledgeable insurance professional will be back to you within 24 hours with an answer. Visit MedigapSeminars.org. Our mission is to help you make an informed decision about your Medicare choices. On to Plan G Medicare supplement. As we discussed Medicare supplement Plans, you might be asking what’s the difference between a Medigap Plan and a Medicare supplement? The answer; nothing! The two terms are interchangeable. More often than not the Medicare research and Medicare information itself refers to these plans as Medigap Plans. In the industry we more often than not refer to them as Medicare supplements. Either way these are plans that supplement Medicare Part A & Part B by filling in the gaps that copays and deductibles that would normally be your obligation to pay, if you didn’t have a supplement. Also, it’s a very important to know that these plans are allguaranteed renewable. What that means is that once you have a Medicare supplement plan only you can cancel the plan and no one can change the benefits, not even an act of Congress. So, as long as you want the Plan and can pay the premiums, that plan is yours. No one can cancel it, no one can raise your prices because of your health. It is guaranteed renewable. Medicare supplement Plan G is quickly becoming the most popular Medigap Plan in the country, and that’s only for two reasons. The first is because the previous most popular plan Medicare supplement Plan F and Medicare supplement Plan C are being phased out as of January 2020. Once January 2020 hits and nobody new to Medicare can purchase a Plan F or a Plan C. Most people shopping for a supplement plan today find Medicare supplement Plan G as the best value. Let’s take a look at the Medicare supplement plans so that you can see why. This table illustrates the benefits of each of the 10 different Medicare supplement Plans. The Plans are identified by a letter across the top row, and the different and general categories of Medicare benefits are identified on the left hand column going down the left hand side. As you look in the column underneath each of the Medicare supplements you’ll find the percentage of insurance coverage that you get for each of those categories. For example, let’s take a look at Medicare supplement Plan F. You notice it’s100% all the way down until you get the international coverage. The foreign national coverage is maxed out at 80% and it’s a very, very limited. It has a lifetime maximum of $50,000. We are going to discount that because it’s really not what we’re talking about here. Plan F has 100% coverage for every category. That means that with a Plan F you pay your premium and then 100% of the copays and the deductibles are covered by Medicare and your Medicare supplement. Plan F is a great plan and it could be an easy decision for many people entering Medicare except that it is being discontinued in January 2020. And Medicare supplement Plan G typically offers equal coverage for a lower premium. Taking a look at Medicare supplement Plan G we can see that the Plan G has all the same benefits as a Plan F, except for this one row right here. The Medicare Part B annual deductible. You pay that yourself out of pocket. That deductible is in annual deductible. It resets on a calendar year; a January 01 reset. As of 2017 it’s just $183. Expectations are that it may go up to $250 sometime in the next 7 to 10 years. So all you pays the Medicare Part B annual deductible and your premium. Other than that, all expenses related to Medicare Part A inpatient coverage or Medicare Part B outpatient services is covered by either Medicare or your Plan G Medicare supplement. That’ it! The math here is simple; if Medigap Plan G were $183 less per year in premiums, then at Plan G and Plan F would be equal. However, typically Medicare supplement Plan G is about $300 to $400 a year less in premiums. That means and you can take that $300 to $400 annual savings and from that savings pay your $183 Medicare Part B deductible and pocket the rest. That’s what makes Medicare supplement Plan G a better value. You might ask what happens when the Medicare Part B deductible increases from $183 to $250? Would that decrease the value of my Plan G? The short answer is “NO”. But here’s why! When the Medicare Part B annual deductible increases the Medicare supplement Plan F will pay that increased amount on your behalf. Since insurance companies are not simply going to let that come out of their profit they raise the premium on the Plan F to make up for the increase in the Medicare Part B deductible. In fact, historically what we see is a $1.50 increase in the plan as premium for every dollar increase in the Medicare Part B deductible. Think of it as an added surcharge to pay that deductible for you. The Medicare supplement Plan G does not pay that Medicare Part B deductible. So it is immune to the increases in the Medicare Part B deductible. Yes, you’ll pay the higher deductible out of pocket But what you won’t pay is the added surcharge that they add to the Plan F. That saves you hundreds of dollars a year and it makes for a more stable premium over time. It’s what makes Medicare supplement Plan G a better value. People considering a Medigap Plan G will often compare the benefits and the cost of Medigap Plan G to a Medigap Plan N. Medigap Plan N can cost much less than a Medicare supplement Plan G. But there’s a catch. In fact Medicare supplement Plan N will often cost 25% to 30% less than a Medigap Plan G. Just like Medicare supplement Plan G, with Plan N you pay the Medicare Part B annual deductible out of pocket. In addition, these asterisks here, what they’re showing is that whenever you visit the doctor you’ll pay up to a $20 copay. If you have an emergency room visit and you don’t end up in a hospital, it will be a $50.00 copay. In addition to that, as you come down the columns here you’ll notice that there is one part where the benefits are missing. It’s called theMedicare Part B excess charges. If you’re charged a Medicare Part B excess charge and you have a Medicare supplement Plan N, that excess charge comes out of your pocket. Medicare Part B excess charges can be easily avoided in most cases and there are some states where it’s actually forbidden. I have those details in another video on the Medicare supplement Plan N. I have linked that down below and I should have a link above. The bottom line is that Medicare supplement Plan N could be a good value. It could be the right plan for you. But it takes effort to make sure that you avoid the Part Bexcess charges. Take a look at my video on Plan N get more details. Now, this Medicare supplement benefit table will change as of January 1, 2020, that’s not far off. If you’re new to Medicare today or plan on having Medicare beyond January of 2020 then it’s important that you have a copy of this table. You should know what your benefit options are going to look like after that date. Later on this video I’m gonna show you where and how you can get a copy. So stay with us. From January 1, 2020 on, people new to Medicare cannot get a Medigap Plan F or Plan C. Historically Plan F & Plan C have been the most popular two Medigap Plans. That should be replaced going forward with Medicare supplement Plan G and Medigap Plan N and possibly another plan, Medigap Plan D I talk about in another video. Once Medicare supplement Plan F and Plan C are no longer offered to new people, that means no new young 65 year olds can get into the Plans. So everybody with a Plan F is going to be getting older, and as we get older we have more medical needs. which means more expenses for Medicare and for the Medicare supplement insurance company. Insurance company’s will then pass along those higher expenses to the people in those plans. If you have a Plan F or Plan C you can expect the price increase in Medicare supplement Plan F and Medigap Plan C to be greater than other plans after January 1, 2020 In fact it’s happening already today. That is not the only reason that Plan F has higher price increases than Plan G. There is one other point that is actually very important. It is part of what is changing with Medicare Plan G today. Plan F was the most popular plan when you’re new to Medicare, and as you know when you’re new to Medicare Part B the insurance company cannot judge you by your health history. They cannot ask health questions they have to accept two regardless of your health and give you the best price that they offer that plan by. That means they take on more people with poor health and higher medical costs and have to pass along those higher medical costs that everybody in the plan through higher premiums. Here’s how this is impacting Medicare supplement Plan G today. It used to be that most people that have a Plan G at purchase that Plan G later on in their Medicare history after their initial enrollment period. It was often purchased by people in their young 70s who at that time went through medical underwriting. Because they went to medical underwriting the people of poor health were filtered out. It was a pool of people with higher health. Better health meant lower cost and because it had lower cost you would typically find the Medicare supplement Plan G would have a price increase anywhere from zero to 3%. But that has changed. Here’s why Now the people buying the Medicare supplement Plan G are typically new to Medicare and in their initial enrollment period where the insurance company has to accept them regardless of their health history. This is a big deal and it is changing the price dynamics of the Medicare supplement Plan D in a big way. Let’s take a look and I’ll show you how. It used to be that the average price increase in the Medicare supplement Plan G average about 1/3 price increase of a Medigap plan F. Zero to 3% was common. Take a look at this, 7.50% price increase in a Plan G. and here’s another one in a different state. and another one in a different state. I have pixelated out the name of the insurance company here because it’s not the insurance company now that’s important. I want you to focus on what’s happening with Medicare supplement Plan G. This is not an insurance company specific issue. Here’s a 5% price increase in Plan G with no price increase in Plan F! This next one is gonna shock you. I promised you a, an industry secret about how insurance companies can raise prices without it showing up in their plan price history. Well, here it is! Take a close look at this…. Do you see it? it’s not that all the plans have the same increase in price that’s not it. It is actually these worse here … “In-froce only” In-force only means only people who already have a policy not people who do not yet have a policy with that company. So here’s the unsavory secret; when an insurance company can raise prices they can do in several different ways. They can never raise prices on both people that are new to their company and just coming in, as well as people who already have a policy. Or, they can just raise the price on the people who already have a policy and not the people that are new coming in. Or, of course they could do it the other way, keep the people that already have a policy the same while raising the price of only the new business. When the insurance company decides to raise prices only on the in-force business, only on the people that have policies that are already existing, that price increase does not show-up on our quote system or in your price research. Unless you have an insurance agent or broker who has been collecting these price increases and is aware of them over the years you won’t know. If you research and ask; has this company ever raise their prices? It will look like they haven’t, although they have. The reason that they do this is so that they are still keeping a low price to get you in, and then of course, raise the price of over time. All insurance companies do this to one degree or another. But there are some insurance companies who have made this an art form. it is their pricing policy to get you in a low rate and then increase your price over time. It’s like a frog in boiling water syndrome… They can get you in at a nice comfortable rate, then slowly turn up the heat. They know most people won’t jump out of that water. Most people will stay right where they are and tolerate the higher price increases without researching and re-shopping their plan. Now like I know this seems to be slightly off topic from Medicare supplement Plan G and I apologize for that. But it is actually important if you’re shopping for Medicare supplement Plan today. It is not just that the price information isn’t there for you to see, it is that the policy with the lowest premium today may not be the policy to have the lowest premium over your lifetime. It could be a great company, or it could be with one of these companies that have a lower entry price and then raise your price over time. That’s important! Back to wrapping up what’s happening with Plan G … I still promised you that I would give you a technique are process to help you determine if Medigap Plan G or Medigap Plan N has a better value for you. What we now seen is that Plan G is no longer the sleeper plan with just a 0% to 3% price increase. Don’t assume that the price increase of the past is going to be the same price increases of the future. Now keep in mind Plan G is still going to be a better value than Plan F, and it should be expected that the price increases of Medigap Plan G should still averaging less than price increases of Medigap Plan F going forward. However if you’re researching your plans and you have a fixed budget or you can barely afford Medicare supplement Plan G today, it’s possible that Plan G’s price could rise to a point where you can no longer afford it. And you should consider that. That’s why I’ve talked a number of times about Medigap Plan N, because people aren’t rushing into Plan N when they are new to Medicare, in most states. Its price stability should be even greater than Plan G. Medigap Plan N may be a worthwhile consideration and here is really what you should do if you are considering between the Medigap Plan G and Plan N. This is what I tell people…. With a Plan G you have a peace of mind. You can get into the Plan G and the premium is affordable to you, it’s within your budget and you have peace of mind. You can have a Medicare supplement where you can see any doctor. You’re not gonna pay the copays. You are not going to worry about Medicare excess charges. You have peace of mind. Plan N is gonna be a a lower cost, but it takes extra effort on your part. You have to do a little bit of research before you see a new doctor. So that you’ll know whether not you can avoid those excess charges. You can avoid them, you just have to be selective on your doctor. Bottom line; Plan N saves money. But in return for the savings in premium there is a little extra effort on your part. You have to think about what it is you want. If you want the peace-of-mind and the premium is within your budget for Plan G, that’s great! If you would prefer to trade the little bit of extra effort for a lower premium then Medigap Plan N maybe the plan for you. I hope that perspective helps you as you make the decision on which plan is best for you and your budget. Remember the Medicare supplement plan table, the benefit table the new as of January 2020 Here is how you get it. I have put a link below that will take you directly my website where have a copy you can download it, you can print it and save it on as a file. It is as Medicare says, “subject to change”. Nothing is completely 100% guaranteed until it comes out in January 2020. But that’s pretty much what we expect. While you are down looking for that, please give this videoThumbs-Up. If you found this information to be useful. If you have learned something from this video then please give it a thumbs up. Whenever you give athumbs upto a video it helps other people with the same questions you have researching Plan G or wanting to find out about these nuances, it helps them to find this video! The moreThumbs Upthe video has, the easier it’s going to be for it to them to find. Now it’s your turn! I make these videos for you. So please leave me comment below to let me know what it is you found most informative or most shocking in this video. And let me know what it is that you will be able to use as you move forward in researching your Medicare supplement plans. I really want to hear from you. It helps me to make better videos for you. I am Matthew Claassen at MedigapSeminars.org, thank you for watching! MedigapSeminars.org and Matthew Claassen, an independent Medicare insurance broker. Medicare Insurance agent. Medicare Supplement Plan G, Medigap Plan G, Plan G, Plan N, Medigap Plan N

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85 thoughts on “Medicare Supplement Plan G vs F vs N (aka Medigap Plan G & What’s Changing?)

  1. Please share your thoughts and questions. I want to hear from you! 🙂 What part of this video did you find most valuable?

  2. Great video on Medicare Supplemental plans…. I am 64 nearing 65 in March of 2018 and have been doing a lot of research on topics like these…

  3. I live in Pennsylvania so there are no excess charges, i think! The difference between plan G and Plan N is about 20%, G is $149.89 and N is $125.37. What plan is best for me? I am on the fence and don't know which way to go.

  4. For a complete Medicare supplement quote comparison of the top plans available to you, complete and submit this free quote request form: https://medigapseminars.org/medigap-plans-independent-medicare-insurance-broker/m-quote-request/

  5. You never explained the way Medigap policies are sold which would also impact prices – age-attained vs. age issued.

  6. Excellent…I found this to be very informative for deciding between these m/c supp. plans. Also, the commentary was simplistic and wsuccint. Thanks

  7. If you like this video, you might want to check out other Videos I have specifically for people new to Medicare: https://medigapseminars.org/new-to-medicare/

  8. I'm looking at plan G premium now and it's an avg. of $40-70 more than Plan N and F of which several videos keep saying Plan G's premium is lower. Over all it looks great but I'm trying to see if I'm missing something because the numbers I'm looking at are excessive on various sites.

  9. Two questions: Q1: It would seem that Plan N would not be a good choice for someone who intends to visit a mental health counselor once a week for anywhere between 3 months to 12 months annually. The $20 copay would quickly eat up any savings in premiums over Plan G. Do you concur? Q2: Are you one of those brokers/agents who 'collect information' on Medigap rate increases such that you might predict (at least in a ballpark way) or such that you might offer a history of a few years of prior rate increases? If not, do you have any other suggestions for someone interested in Plan G who is concerned about rate increases surpassing their budget at some point in the future (say, 4-10 years)?

  10. Very informative video, however I didn't get how the timing of enrollment will affect the premium in any of the medical plans. Assuming you are coming into Medicare plan B at the age after 65 and without a previous health insurance, would it have any effect on the premium if you enroll within six months of signing for Medicare B?

  11. I'm mad as hell and not going o take it anymore.  Shame on the government for making this so confusing and having people make youtube videos to explain.  However thanks for the info, I've calmed down.

  12. Great explanation of the different Medicare supplemental plans. Loved the information on how insurance companies raise prices.

  13. My local university hospital has only single rooms. Part A appears to cover hospitalization only for double occupancy rooms. How would that work?

  14. Hi Mathew,
    I enjoyed your explanation G vs F vs N because you spoke to the common folk how we can understand and now look at each and compare for our personal needs. THANK YOU!!
    Mauria

  15. Nice video, this should have no thumbs down. Plan F will be adversely affected heavily after 1/1/2020 as natural selection (death) takes place and new people aren’t joining. If you can switch someone from F to G after they have been on F for a few years, the savings are greater. I recently saved a few people in Ohio & Texas over $1500 annually.

  16. I was with you until 20:00, looked for the link for future prices. Instead of seeing the prices I got a screen to enter emailaddress and to log onto word press. You seemed upfront until that point.

  17. Since the Plan G premiums are likely to increase, is there an annual "open enrollment" period to shop for lower premiums from other insurance companies who provide Plan G?
    Thanks, Van

  18. If I sign up for Plan G through a private insurer and more than 6 months later that insurer decides to stop offering Plan G, would I be required to have a physical exam to re-qualify for Plan G from a different insurer? Thanks!

  19. This is the 3rd video I have watched of you tonight. You express the information in plan and simple manner. I believe you truly care about your clients. I will be calling your office tomorrow when I am on lunch. Thank you

  20. I wish I could answer your requests in an orderly fashion but alas I must use greeting card/yearbook sayings and say "your great". Thank you. I signed up for Advantage only to find it's a bad joke where I live. One Dr in all of Key West and forget any specialist. Your information has helped a tremendous amount.

  21. hey – thanks for talking slow enough for me to follow the ideas. im very skeptical of these
    insurance companies because of their hiding rate increase records. it only means their
    increases are so high they are ashamed of it. more later.

  22. Great information! As someone who will be eligible for Medicare in February 2019, I knew to steer clear of Plan F (and Medicare Advantage Plans because I can afford a supplement), but was not familiar with Plan N. Still unsure of whether it is right for me. Am in the fortunate position that sizable premium increases in a Plan G supplement over the next 20-30 years should not be a hardship. The ones I see on medicare.gov in my state (Ohio) are in the $120-150/month range. I could handle an increase to $500-600/month over the years. Heck, after paying $1,200/month for a Gold level ACA policy with a low (cough, cough) with a $2K deductible, that would be cheap!!!

    About the table with the coverage in the supplement plans as of 2020. Does that apply only to new plans offered after that date? Or if a customer has an existing supplement policy in force as of that date will his/her coverage stay the same, particularly WRT to Plan N?

    Thanks much.

  23. What is your recommendation for 2020. I am currently on Plan N and interested in FHD?. 2020 changes concern me as GHD may see the same rate increases as F in the past. Canceled my thoughts on FHD as I assume the pool of people in F and FHD are the same?

  24. Absolutely excellent. A thorough discussion of a very important topic that is generally one of the top two to three annual costs faced by the over 70 year crowd. In short one of the best "how to" videos I've watched on youtube. Thank you.

  25. On the video you mention about "There are some state do NOT allow Part B excess charge" . I have two questions:
    – Does the state of California not allow Part B Excess Charge ?
    – If you do not know then where can I find out about that information ?
    Thanks You.

  26. I think you did AN EXCEPTIONAL job on this complex topic. I also know that your calm approach is very helpful.Thank you for your help!!!!!! Sheila O.

  27. Mathew, I'm 64 now. I will turn 65 in about 2 months. I plan on continuing to work for at least the next 5  – 10 years. My question is this… I currently have my wife and my 3 year old on my work company's insurance. Am I able to put everyone on my Medicare insurance and cancel my company insurance coverage for the family? Will I save money this way and keep reasonable insurance benefits via Medicare??

  28. In 2020 they're getting rid of Plan F is what my agent told me. Table continue with Plan G but they are getting rid of Plan F in 2020. This is so ridiculous why it's so confusing, if the medical field could cure anything that would be wonderful. About all the AMA has going for it is antibiotics.

  29. Hi there. I am in the process of learning about medicare. If i choose plan F or C now, is this a grandfather type of plan? Or do I pick plan G from the start. Or should i choose the cheaper plan and change over after its phased out???? Confusing

  30. Very informative, thanks! I started my research almost a full year before turning 65. A few months ago "Big Name" supplement company increased their entry N premium for my state by $10 while decreasing their G premium by about $7. (Fyi, I know a 66yo who already has this company's N, and it went up $10 for her too.) Result is that G entry price is now only about $11 higher than N. While that makes G very appealing to me *right now**, is it likely that if I went with G, the existing-customer premium **increase* trends could be such that the premium gap between the two plans would widen again for me in the future? IOW, is it shortsighted to dismiss N even though it has only an $11 entry gap **right now**? Especially if I want to avoid future underwriting? (I'm not real concerned with excess charge possibility or the copays.) Thanks.

  31. Thank you, this is loads of help. But a question. In the IL SHIP pdf on Medicare Supplements, in the introduction to the rates section (listed by insurer/letter/age), under "Attained Age" (which they say is the pricing method most insurers use), it says, "If you buy a policy at age 65, when you turn 70, you will pay whatever the company is charging for a person 70 years old." Does that mean that IL prohibits the practice you talked about where the company can charge more to existing customers, while giving a lower price to new customers the same age?

  32. I will be 65 in Dec. 2019. If I understand right, I can sign up for original Medicare 3 months before my birthday. I am planning to get a plan G supplement, and a part D. My question is when can I get plan G and Part D. Can I get them when I sign up before my birthday or do I have to wait until within 6 months after my birthday when part B has kicked in?

  33. What kind of increase can insurance companies charge for Plan G? Example? Do some Companies have a reputation for bigger increases?

  34. Thank you for your very understandable presentation on topics that tend to be so confusing! As expats still working overseas, I am especially interested in viewing your videos on postponing starting Plan B and the pros and cons of that as well as any other issues that expats have in foreign lands…. Thank you.

  35. I'm not understanding I guess. Those other options, what have they to do with Tricare Life?
    Thank-you.

  36. Great presentations… very clear and insightful…Where can I contact you for particular question about an expat situation? I would highly appreciate it. Sincerely, ILANA

  37. What's better value and overall plan N or F-HD?
    Also which plan would be better to have to cover out of network care like specialty care for heart and cancer treatment especially high cost immunotherapy drugs?

  38. so I will have my spouses plan insurance as a supplement going forward. Is plan G for those who do not have a medigap plan?

  39. Great video!!! At first I thought that I would have a problem understanding the different plans, but you made it crystal clear.

  40. I just turned 65 and I’m new on medicare and as of now I’m not taking any prescription drugs. Any suggestions..?

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