September 13, 2018 at 10:04 AM #9008
My wife and I both have Plan F in Kansas. The company we are with is now offering an issue-age Plan G for $371 per year less. Obviously, that’s more than the $183 Part B deductible that Plan G doesn’t cover. My wife is still (barely) within her guaranteed-issue period. I would need to go through medical underwriting to switch, but I think I could probably qualify.
I spoke with our agent this morning, and he is recommending staying with Plan F. He said that 1) he expected the $183 Part B deductible to rise in coming years, and 2) he thought that, because the Plan G offering is new, the company was using a very low rate to attract new sign-ups and that the rate would rise much more than the rate for the long-established Plan F. So he’s recommending to his clients that they stay with Plan F (and that new sign-ups get Plan F).
Does this make sense? Just wanted to get some educated opinions before we make a decision.
Thanks for any help with this!!November 29, 2018 at 8:48 PM #9728
The advice your agent is giving you isn’t very accurate. For one the Part B deductible is $185 for 2019. Also, even if the Part B deductible increases every year, folks on Plan F won’t be “protected” from the increase. The insurance companies have to pay for that deductible for you, so if the deductible goes up, the premium goes up with it. The insurance companies are business to make money, if their costs go up, they will pass it onto the consumer.
With Plan G you pay the deductible yourself and pocket the “fee” that the carriers charge on Plan F for paying the deductible for you.
With Plan F and G you will feel the effects of the deductible increase. With F, it will be reflected in the premium and with G, it will be reflected in the out-of-pocket. With Plan G, if you don’t go to the doctor, you don’t pay the deductible. With F you are paying it each month in your premium, regardless if you use it or not.
The rate increases are going to more on F in the coming years after Plan F is no longer offered to folks turning 65. See the post: Plan F vs Plan G for more info.
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