Comparing Medigap Plan F and Plan G

Woman with hands up, wondering if she should pick Plan F or Plan G

Medigap Plan F and Plan G are popular choices among Medicare beneficiaries. Both plans offer predictable coverage and leave you with little to no out-of-pocket costs for your medical needs. Since these plans are so popular, we often get asked to compare Plan F and Plan G. 

Comparing these two Medicare plans will help you decide which is the better choice for you.

Why Purchase a Medigap Plan?

Original Medicare has great coverage. It offers benefits for inpatient and outpatient care. However, it does leave you with significant expenses. Each part has a deductible, coinsurance, and copays. For example, the Part A deductible in 2023 is $1,600. What’s more, there is no limit to your out-of-pocket responsibility.

Many people will try to say that Medicare isn’t much different than an employer-sponsored health insurance plan. After all, Part B offers an 80/20 split, with you paying only 20% of the costs. But what happens when you have a surgery? What about chemotherapy or radiation? That 20% will add up quickly, and the sky is the limit!

To combat these costs, we recommend adding a Medigap policy as a secondary insurance plan. Plans F and G are two popular options.

Medigap Plan F

Plan F is often referred to as the “Cadillac” of Medigap plans, and it’s easy to see why. Plan F pays every Medicare-approved cost that’s leftover from Original Medicare (Part A and Part B). That’s right; if you enroll in Plan F, you’re left with virtually no out-of-pocket costs on approved services.

Monthly premiums for Plan F are higher than those of all other Medigap plans since it offers the most coverage. Premiums vary by carrier, age, gender, ZIP code, and tobacco use, but you can expect to pay at least $180 per month for Plan F. It’s not uncommon for those who are approaching their late-70s and older to have premiums over $300.

There is a caveat to Plan F. Due to recent changes in Medigap rules, you must have turned 65 and be enrolled in both parts of Medicare before 2020 to be eligible for Plan F. Beneficiaries who are just aging into Medicare today are not eligible to enroll.

Lastly, Plan F has a high-deductible option. Under the high-deductible version, you must pay 100% of the costs until you reach the deductible. After that, the Plan will pay for all approved services. In 2023, the deductible is $2,700.

Medigap Plan G

Plan G is now more popular than Plan F because it does not have the same eligibility requirements. As long as you are enrolled in Parts A and B, you can enroll in Plan G. (Underwriting requirements may impact your application, but anyone is eligible to apply.)

Medigap Plan G is almost identical to Plan F. The only difference is that Plan G does not cover the Part B deductible. We’d argue that even with this lack of coverage, Plan G is the better option for most people.

Why? Premiums for Plan G are significantly lower than those for Plan F. So much lower, in fact, that the amount of money you will save by choosing Plan G is usually more than enough to pay the Part B deductible. 

For example, the average cost for Plan G is around $120 per month. Let’s pretend you could get Plan F for $150 per month. Plan G offers a $30 monthly savings. Over the course of the year, that amounts to $360, which is more than the Part B deductible of $226 (in 2023).

Plan F vs Plan G: Which Is Better?

If you’ve been reading other content we’ve published or have already talked to one of our advisors, you’ve probably heard us say that Medicare is not a one-size-fits-all. No Medicare plan is the “best” or better than another plan. As you’ve learned here, Plan F might offer more coverage, but it comes with a higher premium. 

Medicare advisor helping seniors choose between Plan F and Plan G

The best way to decide between Plan F and Plan G is to work with an agent at Carolina Senior Benefits. If you are eligible for both options, we can give you quotes for both. Then, we can do the calculations to decide which plan is more cost-effective. 

Call today to speak to a local Medicare advisor near you!