Is Plan F Changing? Prepare now …

Medicare Supplement Plan F has been under a lot of review lately as regulators question the ever increasing  costs to our healthcare system because of insurance plans that offer first-dollar coverage. The Medicare Supplement Plan F is the most popular plan, because it is the most comprehensive. Facts show approximately 20% of Medicare recipients purchase a Medicare Supplement plan, and of that 20% over two thirds purchase Plan F. The reason this plan is so popular is because when you have this plan, you basically have no out-of-pocket medical expenses. So it brings up a big argument with government officials, that this is one of the many reasons our healthcare system is going bankrupt.

Most studies show that when people have to pay a deductible or co-payments, that they use the plan less than others who do not have to pay a deductible or a co-payment.  Therefore people would be less likely to go to the doctor unless it is absolutely necessary.  However this doesn’t tell the whole story.

Recent studies have found that cost-sharing keeps people from seeking care even when it is absolutely necessary.  This creates an even bigger problem, because if health issues are not treated early on, they become more costly and more difficult to manage the longer they have to develop into a more serious problem.

In a letter drafted to the Secretary of Health and Human Services Kathleen Sebelius, the NAIC committee advised regulators to continue to allow Medicare Supplement plans that offer first dollar coverage (Plan F) to be offered to our nations Medicare recipients. Surprised?  You shouldn’t be … everyone knows preventive care is very important. Early diagnosis and prompt treatment means people will be healthier, and healthcare costs will be minimized.

Read more about the NAIC saying NO to Medigap Cost-sharing here.

With the trends that we are seeing, we are recommending to our customers and to you … if you have a Plan F now, and have seen your premiums increase every 6 months or every year, look at a Plan G.  The only difference between a Plan F and a Plan G is that you pay the Part B deductible each year.   In 2013, the Part B deductible is $147.  All of the other benefits are the same.  See Chart Below.   So if you can save at least $13 a month by switching to a Plan G then you are better of by going to a Plan G.  We look at it like this.  For example, if you are currently paying $185 a month for a Plan F ($2220/year) and you can get a Plan G for $170 a month ($2040/year) then it would be cost effective to switch.  You just saved $180 by switching, and you will only be out of pocket $147 for the Part B deductible.

2012 medigap plans from medicare.gov

Go to our website at www.eMedigap411.com to compare rates today to see if you can save!!!  Or call us 866-756-6199 and we can help evaluate your situation.  When you switch from one plan to another, you will have to qualify, so this may not be an option for you.