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How Much Does Medigap Plan F Really Cost?

How Much Does Medigap Plan F Really Cost?

Doctor visits, lab tests, hospital stays, prescriptions… they all have one thing in common.

Bills.

And sometimes, unknown bills. Have you ever come home from the doctor and wondered just how much your medical bill would be?

Even with insurance, it can be hard to figure out just how much you’re responsible for.

And that’s the beauty of Medigap Plan F. (Note that Medigap and Medicare Supplement mean the same thing.) Plan F pays for all of your deductibles, copays, coinsurance, and excess charges.

If Medicare approves the charge, you’ll never get a bill. It can't get any simpler than that!

As with any Medicare Supplement, you do have to pay a monthly premium. As long as you pay your premiums, you have access to the most comprensive Medicare coverage on the market.

That leaves many Medicare beneficiaries wondering: how expensive is Medigap Plan F?

Want a no-obligation Medicare quote? Our local Sams/Hockaday agents are at your service. Request a quote today!

First, You Have to be Eligible For Plan F

If you're newly eligible for Medicare starting on or after January 1, 2020, you can't purchase a Medigap Plan F. Congress passed a bill called MACRA in 2015. MACRA makes it illegal for Medigap policies to cover the Medicare Part B deductible for those eligible on or after January 1, 2020.

In plain language, this means if you're newly eligible for Medicare on or after January 1, 2020, you can't buy a Plan F. If you were newly eligible for Medicare anytime before January 1, 2020, you can buy a Plan F.

In 2015, Congress passed a pretty lengthy bill called the Medicare Access and CHIP Reauthorization Act of 2015 – it also goes by MACRA. Essentially, this bill makes it illegal for Medigap policies to cover the Medicare Part B deductible to Medicare beneficiaries who are newly eligible on or after January 1, 2020.

If you already have a Plan F, you can keep it.

As Plan F is phased out for new Medicare beneficiaries, Plan G has taken its place. Plan G is identical to Plan F except it doesn’t cover the Medicare Part B deductible.

So, if you're reading this and can't actually buy a Plan F, don't worry! A Plan G is practically the same – there's just a small deductible of $198 in 2020. That deductible can change each year.

Read more: Medigap Plan F: What You Need to Know Before 2020

How Much Does Medigap Plan F Cost?

To find out the cost of Medigap Plan F, our agents need to know your:

  • Zip code
  • Age
  • Gender
  • Tobacco Usage
  • Any health conditions or current prescriptions

You also could be eligible for a household discount, which generally ranges from 6-14% off the monthly premium. Some carriers give you that discount just for having another individual in the house with you, while others give it to couples who both purchase a plan.

There are Medigap companies that will offer a household discount even if your spouse or partner doesn’t have a policy – they just have to live with you! Some companies don’t even require that person to be a spouse or partner – they will give you a discount just for having a roommate over the age of 18.

Because of these variables, Plan F pricing isn't one-size-fits-all. However, we understand many seniors simply want a roundabout figure – are we talking hundreds, thousands, millions? (Just kidding about the millions part!)

While the quotes in this article are subject to change and depend on the variables mentioned here, it'll give you an idea of how much Plan F costs.

Medigap Plan F Monthly Premium for Seniors Age 65

A general idea of what to expect can help you plan for healthcare costs in retirement. So, here are some sample rates for seniors that are 65 years old.

Because our office is located in Decatur, IL, we’ll use a Decatur zip code. But please, remember that these rates are subject to change, so reach out to us for a personalized quote.

Example 1

For this example, we’ll say that we have a 65-year-old female who doesn’t use tobacco. She does apply for the household discount.

The most competitive monthly premiums are between $110-$120 per month.

Example 2

In this example, we’ll say that we have a 65-year-old male who does use tobacco. He doesn’t apply for the household discount.

His most competitive monthly premium is around $150-$160 per month. Individuals who use tobacco will have significantly higher premiums than those who don’t.

If you’re a tobacco user, you’ll quickly find that smokers get a premium hike.

Medigap Plan F Monthly Premium for Seniors Age 68

If you’ve been on Medicare for a few years, you might have noticed your Medicare Supplement experiences rate increases. It’s important to have your supplement reviewed each year on your anniversary date.

An annual policy review is a great time to go back to the drawing board to see if your plan is still competitively priced.

If you have a health condition, you might not be able to switch plans, but it’s always worth checking with your agent.

Example 1

For this example, we have a 68-year old male who does not use tobacco. He applies for the household discount.

His best-priced options range from $125-$140 per month. Keep in mind that a Plan F is a Plan F – it doesn't matter which company you choose when it comes to the benefits. Medigap benefits are standardized.

However, some clients prefer certain "brand" names over others, which is why there's a bit of a price range there. You might be willing to pay a few dollars more for a brand name like Aetna over a smaller company you haven't heard of.

You could save hundreds, even thousands, by letting go of Medigap brand names and focusing on the price.

Example 2

Now, we have a 68-year old female who does use tobacco. She applies for the household discount.

Her lowest price options are from $120-$140 per month. While this price range gives you an idea of our most competitive companies, there are companies out there charging 2-3x more than this for the exact same benefits. It pays to price shop!

Medigap Plan F Monthly Premium for Seniors Age 72

For the final round of examples, we’ll show example premiums for seniors age 72.

Keep in mind that with all of these sample rates, prices are bound to change. If you’re reading this after June 2020, the lowest options shown could be slightly higher.

Example 1

Let’s say we have a 72-year old female who does not use tobacco, and she doesn’t apply for the household discount.

Her best rate would be between $132-$140 per month.

Example 2

For our last example, we’ll quote a 72-year old male who doesn’t use tobacco, but he applies for the household discount.

His best rate would be between $140-$157 per month.

You might have noticed that females get a cheaper rate than males, and it’s entirely true! Sorry, guys!

Women pay less than men on Medigap rates in Illinois. It doesn’t seem fair, we know, but men tend to cost insurance companies more, so they make men pay more.

Conclusion

If you’ve seen the sample rates and you’re thinking there’s no way you could fit that into your budget, don’t worry!

We have a few suggestions:

  1. Ask an agent to run a quote specifically for you. You won’t know your exact monthly rate until you ask for it!
  2. Consider Medigap Plan G or N, which are less expensive alternatives.
  3. Ask an agent to compare Medicare Advantage to Medicare Supplements.

There are affordable coverage options out there, and we’d be happy to go over all of your options. Our team is never pushy – our goal is always to educate you and help you make the best decision for your own finances and risk profile.

Give us a call or click the "Get My Planner" link below to put together your own Medicare plan!

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