Medicare Supplement Plans - D, F, G

[Mack]

In a previous post I took a look at Medicare Supplement Plans A, B, and C. Now let's examine Medicare Supplement Plans D, F, and G. This is for 2011:

Plan D Covers:

Medicare Part A Coinsurance and hospital costs up to an additional 365 days after Medicare benefits are used up
Medicare Part B Coinsurance or Copayment
Blood - first 3 pints
Part A Hospice Care Coinsurance or Copayment
Skilled Nursing Facility Care Coinsurance
Medicare Part A Deductible
Foreign Travel Emergency - up to the plan limits

Plan F Covers:

The same as Plan D with the addition of:

Medicare Part B Deductible
Medicare Part B Excess Charges

This is for a standard Plan F. In addition there is a high deductible Plan F available that makes you responsible for the first $2,000 of medicare covered costs. This is for 2011.

Plan G Covers:

The same as Part D with the addition of:

Medicare Part B Excess Charges

So if you have read both my posts about parts A through G you will begin to get the idea that there is a plan to suit about everyone's needs, and we aren't through yet!

 

[gregl]

Plan F is the most comprehensive and popular plan. Of the almost 10 million people that enrolled into Medigap in 2010, 43% have Plan F. Should you also select Plan F? Not necessarily. Consider the following price/benefit analysis:

1) Because the only difference between Plans F and G is the Part B deductable, if the difference in premiums between these plans is more than the Part B deductable, then Plan G is a better deal. Also historically, annual premium increases of Plan F is higher than for Plan G. The same is true in a comparison of Plans C and D – Plan D may be a better deal.

2) In states where Excess Charges are illegal (like in Pennsylvania), there is no reason to buy the more expensive Plan F – Plan C will suffice. There is also no need to use Plan G – Plan D will suffice. Since 99% of doctors accept Medicare assignments, the need to cover Excess Charges is very small even in states where Excess Charges are allowed. Therefore, there is no reason to buy the more expensive Plan G if Plan D is available. The same is true is true for plans F and C: there is no reason to buy the more expensive Plan F if Plan C is available.

 

[MBSC]

There are two types of Plan F, the plain F (low deductible) and F-HD or high deductible. I would no longer suggest F (low deductible). It will no longer be offered to new enrollees starting in 2020. As those remaining become older and sicker the premiums will need to rise to cover costs. Healthy folks currently in F low deductible are leaving for G, N, and F-HD while they can still pass medical underwriting.

As stated in the post above, Plan G is almost always cheaper than F low deductible. You have to pay the $166 (2016) Part B deductible with G, but the premiums are $250-350 lower annually. Plan G usually experiences lower rate increases than F low deductible.

Some people don't understand how F-HD works. When Part B pays 80%, only the remaining 20% coinsurance is applied to the F-HD deductible. Some people think they have to meet the $2180 F-HD deductible (2016 amount) before Medicare starts paying anything. This is NOT the case.

 

[Davidg]

Mack, are you certain that your description of "plan D" is correct? My understanding is that plan D is strictly a drug plan, and has nothing to do with your part A, part B, skilled nursing, etc..
I admit that I'm just now learning about medicare, and much of it is very confusing, so help me understand about plan D.

Thanks
David

 

[Mack]

Mack, are you certain that your description of "plan D" is correct? My understanding is that plan D is strictly a drug plan, and has nothing to do with your part A, part B, skilled nursing, etc..
I admit that I'm just now learning about medicare, and much of it is very confusing, so help me understand about plan D.

Thanks
David

David,

You have "plan" confused with "part". Medicare has 4 parts, A, B, C, and D. Part D is the prescription drug program.

What I described earlier in this thread is some of the "plans" that Medicare has set up to dictate coverage under Medicare Supplement Insurance. Yes, it is confusing, perhaps Medicare should not have used the same letters for it's supplement "plan" descriptions as it does for it's "parts".

Hope this clears it up!

 

[Davidg]

Yep, right after I posted that, I realized that your post used the term "plan", and not "part". When medicare does things like that, it just adds to the confusion that folks like me go through. I'm not a rocket scientist, but am still a relatively intelligent guy, but dang medicare sure worked hard at making it confusing. I'm understanding a little more every day though.. This forum has been very helpful.

Thanks

 

[Mack]

I'm not a rocket scientist, but am still a relatively intelligent guy, but dang medicare sure worked hard at making it confusing.

That's the government for you! I am just a layman myself and come to a small understanding of the system when I signed up. There is so much that I don't know. I am thankful we have a few members from the insurance industry that post every once in a while to clarify things.

What would be wonderful would be if some people who actually work for Medicare would participate.

 

[Paul H]

I presume that the high deductible Plan F will no longer be available to those who turn 65 in 2020 and later years.

I'm in my 6th year of a HD Plan F. For the first 5 years my premium remained constant, but this year to my surprise the premium went down 10%. A friend with a HD F policy with another carrier had an 8% decrease.

It may be that the HD F policies attract healthier people combined with the ACA's requirement that insurers pay a minimum percentage of premiums on actual healthcare has resulted in lower premiums.

 

[Davidg]

I presume that the high deductible Plan F will no longer be available to those who turn 65 in 2020 and later years.

I'm in my 6th year of a HD Plan F. For the first 5 years my premium remained constant, but this year to my surprise the premium went down 10%. A friend with a HD F policy with another carrier had an 8% decrease.

It may be that the HD F policies attract healthier people combined with the ACA's requirement that insurers pay a minimum percentage of premiums on actual healthcare has resulted in lower premiums.

I've heard that a HD plan G will be offered aometime between now and 2021.