Will You Actually Save With a Plan G?

By now you've probably heard friends talk about the Medicare Supplement Plan G, and may be wondering if it’s really worth moving from your Plan F. Below I’ll explain a simple way to find out whether changing from your Medicare Supplement to a Plan F to a Plan G will actually save you money.

Medicare Supplements are standardized plans. The government designs the plans and private insurance companies offer these standardized plans at various costs. There’s no difference in coverage from one company to another within a given Plan letter (level of coverage). If you’re on a Plan F with Company X, you’ll find that a Plan F from Company Y will pay exactly the same.

When you look at different plan letters, however, the coverage does change.

The Plan F and the Plan G are very similar plans. They each cover all of the same basic benefits with one exception. The Plan G does not pay for your Annual Part B deductible. In 2018, the Part B deductible is $183.

The deductible is the amount you must pay before Medicare starts to help cover your outpatient medical expenses. In most cases, you will get a bill after your first doctor’s visit of the year. On the statement it will say something like “Medicare deductible” or "Part B deductible" and you’ll send a check to your provider (most likely Confluence Health if you live in the Wenatchee Valley) for the $183. If your doctor’s visit is less than $183, you might get a small bill after your second visit to make up the remaining amount until you’ve paid $183 this year. 

After you’ve paid that Part B deductible, a Plan G will act exactly the same as a Plan F. For all Medicare-allowable visits, you won’t get a bill, whether it’s a doctor’s visit, hospital visit, surgery, etc.

With that said, here’s the math you need in order to find out if a Plan G will actually save you money.

• Your Plan F monthly premium x 12 =   $ _______________

                                                                        my annual premium
 

• The Plan G monthly premium x 12 + $183 (2018 Part B deductible) =    $ _____________

You can also use this calculator to quickly find the difference in cost between your Plan F and Plan G annually. Just enter your monthly premium in the box below to find your annual savings with the Plan G. The Part B deductible is built into the calculation so you are comparing apples to apples.