The “Discontinued” Medigap Plan F: Why Plan G is Now the Undisputed King for New Beneficiaries.
The Torch Has Been Passed to a New Champion.
For decades, Medigap Plan F was the “Cadillac” plan that everyone wanted. But a change in federal law means that Plan F is no longer available to anyone who became eligible for Medicare on or after January 1, 2020. The new, undisputed king of Medigap plans is Plan G. It offers the exact same robust coverage as Plan F, with one tiny, manageable difference. For anyone new to Medicare, the debate is over. Plan G is the new gold standard.
How to Save Hundreds a Year by Simply Paying Your Own Part B Deductible (The Plan G Secret).
The Simple Math That Makes Plan G a Better Deal.
Here’s the secret to why Plan G is a better financial deal. The only difference between Plan F and Plan G is that Plan G does not cover the small, annual Medicare Part B deductible (which is a few hundred dollars). However, the annual premium for Plan G is often $400, $500, or even $600 lower than the premium for Plan F. This means you are paying a much higher premium for Plan F just to have them cover one small, predictable bill. You will save hundreds of dollars a year by choosing Plan G and just paying that small deductible yourself.
Plan G vs. Plan F: A Side-by-Side Breakdown of the ONE and ONLY Difference.
It’s Simpler Than You Think.
Let’s make it crystal clear.
Medigap Plan F Covers: 100% of all the gaps in Original Medicare, including the Medicare Part B deductible.
Medigap Plan G Covers: 100% of all the gaps in Original Medicare, except for the Medicare Part B deductible.
That’s it. That is the one and only difference. After you have paid your small Part B deductible out-of-pocket for the year, your Plan G becomes functionally identical to the old Plan F, covering everything else at 100%.
Why People Still on Plan F Are Likely Overpaying in Premiums.
The Cost of a “Closed” Risk Pool.
If you were eligible for Medicare before 2020, you might still have a Plan F. But you are likely overpaying. Because no new, healthy people can join Plan F, it has become a “closed risk pool.” This means that the group of people in the plan is getting older and sicker on average, which causes the premiums for that plan to rise much faster than the premiums for Plan G, which is still open to new, younger, and healthier members.
The Math is Simple: Is the Plan F Premium Increase Higher Than the Part B Deductible? (Yes).
The Annual Check-Up That Can Save You Money.
If you currently have a Plan F, you should do this simple math every year. Look at the annual premium for your Plan F. Then, get a quote for the annual premium for a Plan G from the same company. Is the difference in premium significantly more than the annual Part B deductible? The answer is almost always a resounding “yes.” You are paying an extra $500 in premiums just to have the insurance company cover a $240 bill. It’s a bad financial deal.
“I Have Plan F, Should I Switch to G?” A Step-by-Step Guide to Deciding.
It’s a Smart Move, But There’s One Catch.
If you have Plan F and are considering switching to the more cost-effective Plan G, it’s usually a great idea. However, there is one crucial catch. In most states, to switch from one Medigap plan to another after your initial enrollment period, you have to go through medical underwriting. This means you have to answer health questions, and the insurance company can decline your application if your health has changed. So, the ability to switch depends on your current health status.
Plan G is Functionally Identical to Plan F After You Meet One Small Deductible.
Don’t Pay a Huge Premium for a Tiny Benefit.
This is the key takeaway. Once you have satisfied the annual Medicare Part B deductible on your own (by paying for your first few doctor visits of the year), your Plan G operates exactly like a Plan F for the rest of the year. It will pay 100% of your remaining Medicare-approved costs. You are essentially choosing to self-insure one small, predictable expense in order to save a much larger amount on your fixed monthly premiums. It is the most logical and financially sound choice.
The “Closed Risk Pool” Problem That Is Causing Plan F Premiums to Skyrocket.
A Vicious Cycle of Rising Costs.
Insurance works by balancing healthy and sick people in a large pool. Because Plan F is now closed to new members, the pool of people in Plan F is aging and, on average, using more healthcare services. This forces the insurance company to raise the premiums for everyone still in that Plan F pool at a much faster rate. It’s a vicious cycle that makes Plan F an increasingly worse deal with each passing year.
For Anyone New to Medicare, Plan G is the New Gold Standard. Period.
The Choice Has Been Made For You, and It’s a Good One.
If you are turning 65 or just becoming eligible for Medicare now, the decision is simple because Plan F is not an option. Plan G is the most comprehensive Medigap plan you can purchase. It provides the highest level of coverage and the most peace of mind, protecting you from the unpredictable out-of-pocket costs of Medicare. It has rightfully taken its place as the new gold standard for Medigap coverage, and it is a fantastic, financially efficient choice.
Don’t Mourn the Loss of Plan F. Embrace the Better Value of Plan G.
The New King is a More Efficient Ruler.
Some people are nostalgic for the old Plan F, the “first-dollar” coverage it provided. But the reality is that the market has evolved. Plan G provides a better value proposition for today’s consumer. It delivers the same catastrophic protection as Plan F but does so with a much more efficient premium structure. By asking the beneficiary to handle one small, predictable cost themselves, it saves them from paying a much larger, unnecessary premium. Don’t mourn the old king; the new one is actually better.