Plan F versus Plan G Medicare Supplement

[bookman51]

Perhaps I am asking a no brainer but I am wondering what is the catch? My DW and I have Plan F through Nebraska Blue Cross-Blue Shield. It is over $200 a month. Now I understand I can switch to plan G with same company. It will have about $200 deductible but then we save about $200 a month together for an estimated savings of $2000 for the year even with paying the deductible. So, what is the catch? Am I missing something? Thanks in advance.

 

[REWahoo]

My DW and I have Plan F through Nebraska Blue Cross-Blue Shield. It is over $200 a month. Now I understand I can switch to plan F with same company.

Although you say switch to Plan F, I think you meant to say switch from Plan F to Plan G?

If so, there is no catch. I've seen a number of supplement insurers who do this, pricing the cost of Plan F substantially higher than the cost of G, even after factoring in the added expense of the annual deductible. Not sure why, maybe just a tax on the mathematically challenged.

 

[CRLLS]

So long as they agree to switch you to Plan G with no underwriting, I'd say it is a slam dunk. Most pundits think that future Plan F premiums will increase faster than Plan G. If you have to go thru underwriting, then you could just as easily switch providers at the same time if you want to. We did the latter for this year. some states will allow the switch with no underwriting so it may vary from state to state.

I will say that I asked that question to the BCBS rep when we originally signed up a few years back. He said he had not ever seen BCBS require underwriting. Times change and YMMV. Ask your BCBS.

 

[SumDay]

We did this during the first 6 months DH was Medicare eligible. Our savings wasn't as great as yours, but the difference more than made up for the minimal deductible.

As far as we saw, there was no catch.

 

[bookman51]

Although you say switch to Plan F, I think you meant to say switch from Plan F to Plan G?

If so, there is no catch. I've seen a number of supplement insurers who do this, pricing the cost of Plan F substantially higher than the cost of G, even after factoring in the added expense of the annual deductible. Not sure why, maybe just a tax on the mathematically challenged.

Thanks, I have changed it now. Probably I am just looking at a gift horse in the mouth and wondered, is this too good to be true.

 

[bookman51]

We did this during the first 6 months DH was Medicare eligible. Our savings wasn't as great as yours, but the difference more than made up for the minimal deductible.

As far as we saw, there was no catch.

Thanks much

 

[NoMoreJob]

The only 'catch' is that the deductible will go up and no one knows how much. It's actually the deductible on your Medicare Plan B which is adjusted by Congress. Plan F pays that deductible but G does not so it's your responsibility to pay it under Part G.

I chose plan G because the then current premium plus the part B deductible was less than the Plan F deductible. I also chose it because with Plan F closing the age of the beneficiary pool for it will be rising faster than G which would seem to suggest that premiums would also need to rise more quickly. But again, no one knows for sure.

All you can do is take your best guess but there are no guarantees for the future.

 

[SheitlQueen]

I chose plan G because the then current premium plus the part B deductible was less than the Plan F deductible. I also chose it because with Plan F closing the age of the beneficiary pool for it will be rising faster than G which would seem to suggest that premiums would also need to rise more quickly. But again, no one knows for sure.

I chose plan G over plan F for these same reasons. My plan G premium and deductible are less than Plan F's premiums.

 

[grayv]

The only 'catch' is that the deductible will go up and no one knows how much.

since that hypothetical deductible increase would be paid by the F-plan company, they would raise F-rates to cover it.

 

[MBSC]

I've seen a number of supplement insurers who do this, pricing the cost of Plan F substantially higher than the cost of G, even after factoring in the added expense of the annual deductible. Not sure why, maybe just a tax on the mathematically challenged.

Unhealthy people aging in to Medicare tend to choose the most comprehensive plan available, which was Plan F before 2020. The unhealthy enrollment pool for Plan F causes the premium to be greater than "G + Part B deductible". You're basically paying other people's claims. Someone may mention "guaranteed issue" provisions but GI enrollments are a drop in the bucket compared to the volume of sick people turning 65 each month.

Today, the most comprehensive plan available to unhealthy people aging in to Medicare is Plan G so its enrollment pool will become slightly less healthy over time. Also, more healthy people are choosing Advantage plans which impact all Medigap enrollment pools.

since that hypothetical deductible increase would be paid by the F-plan company, they would raise F-rates to cover it.

^^^ This. When the Part B deductible increases, the Plan F premium increases by a similar amount to cover the deductible. You are paying the deductible either way, just through different methods. There is no free lunch.