Medicare Supplement Plan F Versus Plan G

If you were to buy a brand new car, what would be more important to you, the brand or the actual quality of the car? Let’s say you admire Lexus as a luxury brand (that’s 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? Which car would you choose?

Now I know that buying a car is not the same as buying a Medicare supplement, but I’ll buy a Aetna plan at

There are 10 Medicare Supplement plans, along with a highly depreciable version of Plan F. However, the original Plan F became the official champion of the Medicare Supplement World and left all other plans in the dust.

Plan F was marketed as the best supplement plan, the luxury vehicle of the Medicare Supplement line. Meanwhile, most consumers have never been officially enolled into Plan G. There are a few reasons why this seemingly identical plan has been squeezed out in sales presentations.

  1. It costs less, so agents will make a smaller commission … that is, plan G is not as lucrative as the expensive plan F.
  2. Agents promote this plan as challenging compared to a plan F; That is, consumers are afraid to think Plan G would require more effort.

Let us discuss the first reason. The average price difference between Plan F and Plan G is around $ 20- $ 30 (not an actual average, but my personal rating). That’s about $ 300 / year of savings or, as an agent would see, $ 60 less than a plan F would be accumulated in commissions. This may not be worth it for an agent’s agenda, but if you sell 100 policies every six months, that’s about $ 6,000. Sound is worth it now?

However, if the agent really finds the best strategy for you, he will not dissuade you to let go of plan G.

It is difficult to influence your opinion on Plan F. Many of you think Plan F is the only plan worth your money. Part B Deductibles is one difference between plan F and plan G. This deductible costs $ 147 per year and must be completely used up before your carrier or Medicare cover everything. Let’s do some more math. If transitioning to a Plan G could save you $ 25 / month, you would still save $ 153 / yr even if you pay the $ 14 / yr Part B deductible.

It’s a mystery, but some people refuse to pay the $ 147 / year out of pocket (it is a deductible, so you do not have to send a bill anywhere) to about $ 20- $ 30 more per month for Medicare supplements.

When my leads are comfortable, I try to steer them to Plan G. I do not always succeed, but it is my hope that Plan G will become more popular in the future.

If I had to choose between a Toyota and Lexus, I would most likely go for a Toyota. This is not to say that Lexus is reliable, but because I am sure that I am going to be with a Toyota just as I will be with a Lexus, and they are much cheaper.