Medicare Plan F vs G

Many Medicare beneficiaries are paying too much for Medicare supplement (Medigap) insurance plans. Either they just bought something that sounded good or one a greedy insurance agent pushed without regard for what was affordable.

I have spent the last 37 years in the health insurance industry showing clients how to save money on health insurance by only buying coverage that is absolutely needed. More often than not, most people buy more coverage than is required to protect their assets and they end up throwing away premium dollars that could have been put to better use elsewhere.

Now that I am moving into the Medicare market I am disgusted at what too many self serving agents have done by pushing a Medigap plan that is not only costly but for many, totally unnecessary.

A neighbor asked me to look at Medicare supplement options for him and make some suggestions. At age 73 he was losing coverage through his wife's employers and he needed a replacement. He called USAA, asking for a quote. As a veteran of Viet Nam he has used USAA for home and car insurance for years and he trusted them.

The agent at USAA quoted him a rate of $160 for Medicare supplement plan F.

That would be a good price if it were accurate, but the real rate was $210.

I have no idea where the made up rate came from, nor do I care. Ed would have discovered the correct rate after the policy was approved but by then it may be too late to switch to a more affordable plan.

I found a Medigap plan F for $152, a savings of $58 per month, $696 per year which is substantial when you are on a fixed income and your wife lost her job of 19 years due to the recession.

I also suggested he consider Medigap plan G as an alternative. The two plans are almost identical with the difference being plan G does not cover the $155 Medicare part B deductible. In his case, the plan G premium was $125, saving him $27 per month vs. plan F or a savings of $324 per year.

Almost identical coverage.

Premium savings of $324 less the Medicare part B deductible of $155 is a net savings of $169.

This is what we call a no-brainer.

How much are you overpaying for Medicare supplement insurance?


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