The Lexus of Medicare Supplement Line: Plan F versus Plan G

If you were to buy a new car, what would be most important to you? The make or the actual quality of the car? Let’s say you really admire Lexus as a luxury brand (this is my personal preference). But what about the Toyota? It has the same characteristics, quality, stability; the only difference is the brand. What would you do? What car would you choose?

Now, I know that buying a car is not the same as buying a Medicare Supplement, but bear with my analogy for now.

There are 10 Medicare supplement plans, along with a high-deductible version of Plan F. However, the original Plan F has become the official Medicare supplement world champion, leaving all other plans in the dust.

Plan F has been marketed as the best of the best, the luxury car in the Medicare Supplement line. However, many consumers are never officially introduced to Plan G. There are a few reasons why this seemingly identical plan has been put aside during sales presentations.

1. It costs less, therefore, agents will charge a lower commission … which means that Plan G is not as lucrative as selling the expensive Plan F

2. Agents market this plan as a “hassle” compared to Plan F; which means that consumers are afraid to think that Plan G would require more effort on their part.

Let’s analyze the first reason. The average price difference between Plan F and Plan G is about $ 20 to $ 30 (not the actual average, but my own personal assessment). This works out to roughly $ 300 a year in savings, or as an agent would see it, $ 60 less than a Plan F would get in commissions. This may not sound like useful for an agent’s schedule, but if you’re selling 100 policies every 6 months, that’s about $ 6,000 down the drain. Sound valuable now?

However, if the agent really finds you the best policy to suit your situation, it won’t take you away from Plan G. I always inform my prospects of Plan G, which brings me to the second reason:

You, the consumer.

It is difficult to influence your opinion about Plan F. Many of you feel that Plan F is the only plan that is worth your money. The only difference between Plans F and G is a little thing called the Part B Deductible. This deductible costs $ 147 / year and must be used in full before Medicare or your insurer will cover anything. Let’s do more math. If switching to Plan G could save you $ 25 a month, you would still be saving $ 153 a year even paying the Part B deductible of $ 147 a year.

It’s a conundrum, but some people forgo paying that $ 147 / year out of pocket (it’s a deductible, you don’t have to send a bill anywhere) to spend $ 20- $ 30 more a month on the Lexus of supplements. of Medicare.

Sure, all of your friends can have the shiny new Plan F, but you could get the same coverage for less and become the guru of the Medicare supplement group. If my potential clients are comfortable, I try to steer them towards Plan G. I’m not always successful, but I hope Plan G will become more popular in the future.

If you had to choose between a Lexus and a Toyota, you would probably choose the Toyota. Not because Lexus isn’t reliable, but because I know I’d be as satisfied with a Toyota overall as I would be with a Lexus, and they’re a lot cheaper.

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