Who wouldn’t like Plan F insurance coverage?
Individuals who’re receiving Medicare benefits look to private insurance companies to fill the gaps of Medicare, called “Medigap Insurance,” also known as Medicare Supplemental Insurance. The popular Plan F isn’t liked by everybody, including the government. What could this mean for the future of Medigap coverage and Plan F.
What is Plan F?
Most individuals are familiar with deductibles, coinsurance, and co-pay’s when they visit a healthcare provider. Medigap Plan F fills all the gaps that would normally be paid by Medicare beneficiaries. The policy pays Medicare’s deductibles, co-pays, and coinsurance. Individuals who enroll into the “F” Plan don’t worry about Medicare-approved out-of-pocket expenses because the plan takes care of the cost as long as the premiums are paid on-time.
The Government and Medigap Plan F
Officials looking for ways to decrease the federal deficit, are suggesting that certain Medigap policies help explain why Medicare bills are rising so fast. Seniors don’t think twice when making a trip to the doctor or hospital because their policy will pay. And I don’t blame them.
Will shifting more of the healthcare cost to seniors solve the problem?
Paul Brodhagen, a 70-year-old male, is among the millions of seniors who’ve purchased a Medigap Plan F for his Medicare health insurance, doesn’t like the idea.
Paul is happy with his Supplemental Plan and said, “I know exactly what my health insurance expenses are every month, which is important when living on a fixed income. It would be tough to have to pay insurance deductibles and co-pays every time I visited a provider. If I didn’t have Plan F, I would definitely think twice before visiting a doctor or hospital.”
Seniors are concerned of government intervention by adding co-pays to their Medicare Plan F policy. If that were to happen, Medigap Plan F would possibly fade and Medigap Plan G would become more popularly purchased.
Why Medigap Plan G is the plan of the future
Medigap Plan G may be the government’s answer to the problem. Plan G requires individuals to reach their Medicare Part B deductible of $166.00 before the plan pays for services. Since Plan G makes individuals meet their Part B deductible first, the premiums are cheaper than Plan F’s.
It may be cheaper for individuals to have Medigap Plan G now. The difference in premiums between F and G could be substantial enough, even with the Part B deductible, to seriously consider Plan G instead of Plan F.
The Plan G would make an individual think twice before going to the doctor because they would need to reach their Part B deductible, therefore lowering the deficit.
I still like Medigap Plan F, but now highly recommend switching to Plan G. the product to seniors on Medicare. It’s wise to pay attention to all factors when selecting your Medicare insurance coverage. My readers and clients will be the first to know of any Supplemental changes in the future. For now and always, get the best insurance coverage at the lowest cost using Retirement Transitions.
All content is in the opinion of the Author, Dan Owens, and is a forecast where he believes Medicare Supplemental Insurance is heading.