It’s going to be a long year full of questions! RE: Medigap’s Plan types F and G.
Funny part is…. this “news” was announced in 2015. So, we’ve know for quite some time that this is going to happen. The good part? We’ve been saying the same thing for years. The other good part? Lots of people are now listening!
So…. Let’s just talk about Plan F. F is the best, most comprehensive plan out there. You buy it and pay a company $190 per month (EXAMPLE) and you get NO BILLS! For real. If you meet people out there that say “I never get a bill!” They are not lying!! It’s true! Phenomenal, over-the-top coverage.
That being said, if you turn 65 in January of 2020 or later, you can’t buy it. But – if you already own it? You can keep it!! Yeah!! PHEW!! You’ll say to yourself…. Not so fast – keep reading…!
Example: You and your friends own a Plan F today. It’s excellent and pays for everything for you. But, you need your 65 year old friends that are younger and healthier to also join you in that pool of Plan F business so you tell them how great the plan is. They sign up, they pay premiums and it supplements YOUR costs that the company may pay on YOUR behalf! That’s the nature of insurance, right?
So, as time goes on…. there are no new 65 year olds buying your Plan F because it’s been discontinued. The rates creep up a little bit. Then, 2 years later they burst up some more. You make some phone calls to other carriers and find that their plan G costs $95 less per month than the Plan F that you are enrolled in. And, you learn that the only difference between plans F and G is that you now have a $185 annual/Part B deductible (look up charts on Google). So, $95.00 x 12 is a lot more in savings than $185.00 is in cost, so you change carriers. Caveat — You must pass medical underwriting to be accepted by the new carrier that is offering the plan G.
You pass? Excellent – you get to save money and have great coverage. You fail? You can be stuck. And, your other friends that used to like Plan F… the ones that CAN pass underwriting? Well, they’re going to leave you in your Plan F as they go off to enjoy savings.
We all know what happens to risk pools that get older and sicker, right? Think it through carefully – if you have the opportunity to get out of a Plan F or Plan C, we advise you to so. Call us, we’ll help you get there.