With rising healthcare costs, many are questioning whether Plan F, once the 'gold standard' of Medicare supplements, is still the best choice. Is it time to consider Plan G? Let's explore.

With its comprehensive coverage yet high price tag, it's worth considering if there's a more cost-effective alternative available, such as Plan G. Let’s delve into the specifics and determine if a switch might benefit your clients.

The Current State of Plan F

Medicare Plan F has long been revered for its extensive coverage, handling everything from Part A and Part B deductibles to coinsurance, thus minimizing out-of-pocket costs for beneficiaries. However, significant changes took effect after January 1, 2020. New Medicare beneficiaries who turned 65 on or after this date are no longer eligible to purchase Plan F. This shift was designed to encourage more personal responsibility towards healthcare expenses, aiming to alleviate overall Medicare spending. Those already enrolled in Plan F prior to the cutoff can maintain their coverage, and individuals who were 65 before 2020 still have the option to apply for Plan F if they haven't already done so.

Should Clients Keep Their Plan F?

Plan F holders are in a favorable position for now, but that doesn't mean retaining it is their best option. An alternative worth considering is Plan G, which covers nearly everything Plan F does, except the Part B deductible. For 2025, this deductible is $257—a manageable amount for many, particularly when weighed against the potential premium savings. If the annual premium difference between Plan F and Plan G surpasses the Part B deductible, transitioning to Plan G could be a financially prudent decision.

Another Reason to Consider Plan G

The other reason to consider switching to Plan G is the potential for smaller rate increases over time.

With fewer new enrollees in Plan F, this block of business is likely to experience higher rate increases year over year. Since Plan F has a diminishing pool of beneficiaries, the population will continue to age, and carriers may adjust their rates more aggressively to compensate. Plan G, on the other hand, remains open to new enrollees, potentially leading to a more stable and sustainable rate structure in the future.

That said, it’s important to note that Plan G is not guaranteed issue. Even though your clients may already have a supplement, they will likely need to apply for a Plan G and answer medical questions. If they have pre-existing conditions, there’s a chance that their application could be declined, even with their current carrier.

Still, there’s no harm in trying. As long as they don’t cancel their Plan F, your clients can complete a Plan G application and see what the underwriters say. If they’re declined, they can just keep their current supplement.

Comparison of Plan F and Plan G: A Quick Overview

Recap

While your clients with Plan F can continue their coverage, it’s prudent to evaluate whether switching to Plan G could be more cost-effective in the long run. With potential savings, likely more stable premiums, and a comparable level of coverage, Plan G could be a smarter choice for many.

Review your clients' current healthcare needs and financial goals, and consider setting up a consultation to discuss the benefits of switching to Plan G. They’ll never know the advantages unless they explore their options.