Warning! Do not Buy Medigap Plan F
If you think my title is a bit dramatic, I guarantee not. The following information is critical to anyone considering planning a F-health supplement. Program F has long been the most popular standardization program, and it does have a purpose. However, you should explore all the options and make yourself aware of potential pitfalls before having one.
I would also like to introduce the following information with a little background myself. I work in the senior market for 27 years. Most of the time, I worked on the design and pricing of Medigap plans.
New agent and inert agent for sale Plan F Medicare supplements. This is real. Insurance agents like to sell scheme F. It pays a higher commission, which most shoppers usually hear from friends. Because it is so popular that it is a much easier presentation
Vigilant agents that immediately push you to plan F. In order to make a comprehensive statement, Plan F is best to be wrong and Irresponsible. If they say it is "Cadillac Plan", as it covers everything, hang up the phone. Having a "Cadillac Plan" sounds good, but it is cost.
Insurance companies also like Plan F. It has the benefits you may never use, and the other is very profitable for the company.
If the only difference between Plan F and Plan G is the partial B deductible, why is the price difference so high? Medicare Part B deductible is currently $ 166 per annum. However, when you compare plans, it is often found that Plan F costs $ 300 to $ 600 more than Plan G. Insurers call the difference a "convenience fee". Why not keep your "convenience fee" in your wallet and pay for it yourself?
Excess fees are not that great deal. The reality is that most physicians are receiving medical insurance assignments and it is easy to confirm whether your doctor is. If you do not, why would you pay for this benefit?
Worse still, in some states, doctors charge Medicare Allowable fees illegally, but many agents continue to sell their plans to their clients.
Historical Plan F has a larger tax rate increase. It's a fact, just think about it and it's easy to understand why. Because Plan F has the first dollar coverage, it is often overused. Means that people will see the doctor more frequently when it costs them not to have their own pockets.
In addition, unhealthy people who know they will have considerable medical expenses are more likely to purchase F because of its comprehensive coverage.
On average, the plan F rate increase is three times higher than the plan G.
Do not fall into the Medigap Plan F! So far, this is the most compelling reason for not having a plan F. Program F will be phased out by 2020. Anyone with a previous plan can keep the plan. Do not keep this plan! New sales will cease and there will not be any young and healthy individuals entering the program, offsetting the cost of the old insurance company. Prices must increase. As interest rates rise, any person who is healthy enough to pass the insurance requirement will turn to the new plan. This will make the situation worse.
If you fall into Plan F after 2020, you can see a ridiculous growth rate of two digits year after year. A similar situation occurs when Plan J is removed from the market in 2010
In summary, purchasing Plan F can be a huge mistake. Consider all options. Talk to agents familiar with all programs, be sure to ask the main points mentioned in this article