What Is The Best Medicare Supplement?
The Best Medicare Supplements are Plan F and Plan G
There is a very important cost category in Medicare called “Medicare Part B excess”.
The only Medicare Supplements that pay for Medicare Part B Excess are Plan F and Plan G.
What is Medicare Part B Excess?
Medicare allows medical providers to opt-out of Medicare’s regular reimbursement system in order to collect an additional 15 percent from their Medicare patients for services provided under Medicare Part B.
The way this happens is medical providers who choose to opt-out of Medicare’s regular reimbursement system are paid 95 cents for every dollar they would have been paid had they remained in Medicare’s regular reimbursement system.
The medical providers are then allowed to charge the patient an additional 20 percent. This brings the total compensation for the provider to 115 percent of Medicare’s regular reimbursement rate.
Medical providers who choose Medicare Part B Excess tend to be those who are highest in demand and can afford to be selective with who they accept as patients.
Why is it important for a Medicare Supplement to cover Medicare Part B Excess?
The reason it is important for a Medicare Supplement to cover Medicare Part B excess is if you have a serious health issue, you want to be able to receive care from a medical provider who has the most expertise and experience in your unique health issue.
Medical providers who charge Medicare Part B Excess are more likely to have the most expertise and experience in their specialty.
If you have Medicare Supplement that does not cover Medicare Part B Excess, you may be forced to choose between the doctor who you believe has the most expertise and experience in your condition and therefore give you the best chance for the best health outcome and a doctor who will have less expertise and expertise but may cost you less money out of pocket.
What is the difference between Plan F and Plan G?
A Plan F Medicare Supplement pays everything Medicare does not pay.
A Plan G Medicare Supplement pays everything Medicare does not pay with the exception of Medicare’s annual Part B deductible. In 2021 Medicare’s Part B deductible is $203.
Plan G usually has a lower monthly premium than Plan F mainly because Plan F covers the Medicare Part B premium of $203 and, with Plan G, the Medicare beneficiary the $203 Medicare Part B deductible.
Okay...so do I want a Plan F or Plan G Medicare Supplement?
Actually you may not have a choice.
In 2015 Congress passed a law saying that anyone who turns 65 on or after January 1, 2020 will not be eligible for Plan F. This means most of the people who read this when preparing to go on Medicare will not be eligible for Plan F.
If you turned 65 before January 1, 2020
If you turned 65 prior to January 1, 2020 but are just now going on Medicare you can still enroll in Plan F. In your case, whether Plan F or Plan G is the best choice for you is primarily a math question.
The Medicare Part B premium of $203 when divided by 12 months is $16.92 per month.
In most situations, if your premium for a Plan F Medicare Supplement is higher than your premium for a Plan G Medicare Supplement by an amount greater than $16.92 per month, you will pay less in the short term by choosing Plan G.
However, there are two important reasons why you may want to select Plan F if the difference in premium is more than $16.92 but not significantly so.
First, the Medicare Part B deductible typically increases every year.
For example, in 2016, the Medicare Part B deductible was $166.
In 2018 the Medicare Part B deductible was $166.
In 2020 the Medicare Part B deductible was $198.
Because the Medicare Part B deductible is likely to continue to increase in future years. The $16.92 benchmark premium difference between Plan F and Plan G will increase also.
Second, the change in the Medicare law mentioned above will likely result in Plan F premiums increasing at a smaller rate than Plan G.
The reason for this is as follows...When someone applies for a Medicare Supplement after they have been on Medicare Part B at least 6 months, they are required to answer health questions and can be declined for coverage if they have certain health conditions or have had certain health conditions in the past.
Because of the aforementioned change in the law that says someone who turned 65 on or after January 1, 2020 is not eligible for Plan F, an increasingly higher percentage of people applying for Plan F have to pass health questions in order to be approved for coverage.
At the same time, a person who turned 65 on or after January 1, 2020 can enroll in a Plan G Medicare Supplement if they are within 6 months of their Medicare Part B effective date and be approved without answering health questions.
This means the overall health of people in Plan F will be increasingly better compared to people in Plan G. In turn, this means the health care costs for people in Plan F going forward will be less per person than people in Plan G and the differences in premiums between Plan F and Plan G are likely to decrease even though the Plan G policyholder is required to pay the Medicare Part B deductible in Plan G and not in Plan F.
I recommend enrolling in A Plan F Medicare Supplement in 2021 if you are eligible based on turning 65 before January 1, 2020 if the monthly premium for Plan F is less than $30 more than Plan G.
If you turned 65 after January 1, 2020
If you turned 65 on or after January 1, 2020 you should enroll in Plan G since you do not have the option of enrolling in Plan F.
What will your Medicare Supplement cost?
The monthly premiums for Medicare Supplements vary by state.
You can get an exact quote for your Medicare Supplement by clicking on the following link
Click Here To Request Your Free, No-Obligation Medicare Supplement Quote
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