Choosing the right Medicare Supplement (Medigap) plan is essential for covering the gaps in Medicare Part A and B coverage. Plan F and Plan G are two of the most popular options, offering extensive coverage and minimizing out-of-pocket expenses for beneficiaries. This guide provides an in-depth comparison of both plans to help you understand their benefits and differences, ultimately assisting you in making an informed decision.
What is Medicare Supplement Plan F? Medicare Supplement Plan F has long been considered the most comprehensive of all the Medigap plans. It covers all deductibles, copayments, and coinsurance that Medicare beneficiaries would normally pay out-of-pocket. Until recently, it was the go-to choice for complete coverage, as it includes:
- Part A hospital and coinsurance costs up to an additional 365 days after Medicare benefits are exhausted
- Part A deductible
- Part B deductible
- Part B coinsurance or copayment
- Part B excess charges
- First three pints of blood used in a medical procedure
- Skilled nursing facility care coinsurance
- Foreign travel emergency care (up to plan limits)
What is Medicare Supplement Plan G? Medicare Supplement Plan G is often considered the closest alternative to Plan F, particularly after Plan F was no longer available to new Medicare enrollees starting January 1, 2020. Plan G offers identical benefits to Plan F, with the sole exception of the Part B deductible. Plan G covers:
- Part A hospital and coinsurance costs up to an additional 365 days after Medicare benefits are used up
- Part A deductible
- Part B coinsurance or copayment
- Part B excess charges
- First three pints of blood
- Skilled nursing facility care coinsurance
- Foreign travel emergency care (up to plan limits)
Key Differences Between Plan F and Plan G
- Part B Deductible: The primary difference between Plan F and Plan G is the Part B deductible. Plan F covers this deductible, while Plan G does not. For 2021, the Part B deductible is $203, which Plan G beneficiaries will need to pay out-of-pocket annually before Part B coverage begins.
- Availability: Plan F is not available to new Medicare enrollees who became eligible for Medicare on or after January 1, 2020. However, those who were already eligible before this date can still enroll in Plan F.
- Premium Costs: Because Plan G does not cover the Part B deductible, its premiums are typically lower than those for Plan F, making it a cost-effective option for those new to Medicare or looking to switch plans.
Advantages of Plan F
- Complete Coverage: Offers the most comprehensive coverage, including the Part B deductible.
- Simplicity: Beneficiaries don’t have to worry about any out-of-pocket costs beyond the premium.
- Peace of Mind: Ideal for those who want maximum predictability in healthcare spending.
Advantages of Plan G
- Lower Premiums: Generally lower premiums compared to Plan F due to the exclusion of the Part B deductible.
- Extensive Coverage: Covers almost everything Plan F does, except the Part B deductible.
- Increasing Popularity: As Plan F becomes less available, Plan G is a leading choice for new Medicare enrollees.
Both Medicare Supplement Plan F and Plan G offer robust coverage options for those looking to minimize out-of-pocket expenses on top of what Medicare Parts A and B cover. The choice between the two will largely depend on whether you value complete coverage with a higher premium (Plan F) or slightly reduced premiums with minimal out-of-pocket expenses (Plan G). Assessing your financial situation and healthcare needs will guide you to the right plan choice.