Medigap Plan F vs Plan G: Which one is the better option?
What would be more vital for you if you were to purchase a new car, the actual performance of the car or the brand name? Assuming you admire Honda as a luxury brand (this maybe my personal preference). What about Kia? It has the same performance, quality, features, stability; the only difference here is the brand. What would be your decision? Which car would you go for? It’s understandable that purchasing a car is not the same as purchasing a Medicare supplement policy, but for now, let’s stick with this example.
There are 10 Medicare supplemental plans, as well as a highly depreciable version of the F plan. However, the initial F plan became the official Medicare supplement champion and left all the other plans in the dust. Policy F has been touted as the best supplement policy and the luxury policy among Medicare supplement policies. In the meantime, many consumers are not officially registered for Rule G. There are several reasons why this almost identical rule has been squeezed into sales presentations.
- It’s cheaper, and so the agents will make a smaller commission … that is, the G policy is not as profitable as the expensive F floor.
- Agents promote this policy as a challenge to an F policy; In other words, consumers fear that policy G requires more effort.
Let’s look at the number one reason. The average difference in price between the F and G plan is between $ 20 and $ 30 (this is not a practical average, but a personal assessment). That’s tangible savings of about $ 300 a year or, as an agent would, $ 60 less than a commissioned F policy. It may not be worthwhile for the agent’s program, but if you sell 100 fonts every 6 months, you will earn about $ 6,000. Is it worth the sound now? If the agent really finds the best plan to respect your health, it will not dissuade you from leaving politics G.
It can be difficult to change your opinion on F politics. Many people think that F politics is the only plan that is worth their money. The deductions in Part B are the difference between F and G policies. This subsidy costs $ 147 per year and must be used in full before your courier or Medicare insures everything. Let’s do a little more math. If switching to a G-Policy can help you save $ 25 a month, you’ll still save $ 153 a year, even if you pay the $ 14 per year deductible portion.
It’s a mystery, but some people do not want to shell out $ 147 a year (because it’s a franchise, you do not have to send any bills) to about $ 20 to $ 30 a month for 2020 Medicare supplements. When my contacts feel comfortable, I try to direct them towards the G policy. I do not always succeed, but I hope that the G Policy will be more popular in the future.