Medigap policy G Versus Policy F: Which is better?
What would be most important for you if you want to buy a new car, the actual quality of the car or the brand? Let us say you admire Toyota as a luxury brand (this is my personal preference). But what about Lexus? It has the same quality, characteristics, stability; the brand is the only difference. What would you do? Which car would you choose?
It is understandable that buying a car is not the same as buying a Medicare supplement plan, but for now let us continue with the analogy. There are 10 Medicare supplement policies, along with a highly depreciable version of the F policy. However, the original F policy became the official champion of Medicare supplement and left all the other policies behind.
Policy F has been promoted to be the best supplemental policy, the luxury policy among 2019 Medicare Supplement plans. Meanwhile, many consumers have not been enrolled officially in Policy G. There are some reasons why this quasi identical policy has been compressed into sales presentations.
- It is cheaper, and so agents will make a smaller commission … that is, policy G is not as profitable as the expensive F plan.
- Agents promote this policy as a challenge to a policy F; That is, consumers are afraid that the G policy would require more effort.
Let’s examine the first reason. The average price difference between Policy F and Policy G is about $ 20- $ 30 (not a real average, but my personal score). This is a saving of approximately $ 300 / year or, as an agent would see, $ 60 less than an F policy accumulated in commissions. This may not be worth it for the agent’s schedule, but if you sell 100 policies every 6 months, it’s about $ 6,000. Is it worth the sound now? If the agent really finds the best plan to suit your health condition, he won’t dissuade you from leaving the policy G.
It can be challenging to change your opinion about Policy F. Many people think that Policy F is the only plan that is worth their money. The deductibles in Part B are the difference between Policy F and Policy G. This subsidy costs $ 147 each year and must be used in full before your messenger or Medicare insures everything. Let us do a little more math. If the transition to a G Policy could help you save $25 a month, you will still save $153/year even if you pay the deductible part of $14/year.
It’s a mystery, but some people do not want to pay the $ 147 / year out of pocket (because it is a deductible, you do not have to send any bill to anywhere) to around $20- $30 more each month for supplements of Medicare. When my contacts feel comfortable, I try to direct them to the G policy. I’m not always successful, but I hope Policy G will be more popular in the future.