Kentucky Medicare Plan F vs. Plan G

Kentucky Medicare Plan F vs. Plan G

Last updated on: November 10, 2022

When you’re signing up for Medicare Supplement Plans, it can be challenging to determine which is the best plan because there are so many Medigap options in the state of Kentucky. We’ll try to break it down for you in a way that’s easy to understand so you can make the best decision for your health and pocketbook.

A Brief Refresher on Medicare Supplement in Kentucky

Medicare Supplement Plans are offered by private insurance companies as a way to help pay for the twenty percent of your medical bills that Original Medicare does not cover. Depending on the plan, you might get coverage for co-pays, deductibles, and coinsurance. You may also get additional coverage beyond that, depending on which specific plan you purchase. 

Don’t forget that to purchase a Supplement Plan, you must be enrolled in Original Medicare Parts A and B. You cannot use a Supplement Plan in conjunction with a Medicare Advantage Plan.

Plan F in Kentucky – The Basics 

Plan F covers your Part A and Part B deductibles. It also covers the twenty percent coinsurance that Original Medicare doesn’t. The average cost of Plan F is between $120 and $160 per month, depending on your sex and tobacco usage. Still, prices vary depending on which insurance company you purchase the plan from, so it’s important to do your research. 

Beginning in 2020, Medigap plans were no longer permitted to cover the Part B deductible. Therefore, Plan F is no longer offered to new Medicare beneficiaries. If you were signed up for Plan F before January 2020, you are permitted to keep the plan. Additionally, if you were eligible for Plan F before January 2020 but didn’t enroll, you can still purchase Plan F.

Plan G in Kentucky – The Basics 

As of January 2021, it’s commonly accepted that Medigap Plan G is the most comprehensive plan available to all new Medicare Beneficiaries and is one of the most popular ones purchased. Plan G has a small deductible that has to be met, but once that is reached, Plan G will pay the full twenty percent that Original Medicare doesn’t cover. It pays for the hospital deductible, co-pays, and coinsurance. The hospital deductible alone is $1,480 as of 2021, so buying Plan G can definitely save you a significant amount of money. 

Additionally, in Kentucky Plan G pays the daily co-pays you are charged for a hospital stay that lasts longer than 60 days. It then pays for an additional 365 days that you might spend in the hospital once you’ve exhausted your Original Medicare hospital coverage. 

All Plan G plans, regardless of which insurance company you purchase it from, have the same benefits. The prices change, though, so you want to do your research and make sure you find the most affordable option.

The one thing Plan G doesn’t pay for is the Part B outpatient deductible. The Part B deductible in 2021 is $203. Once you spend $203 for the year, your Original Medicare and your Plan G Supplement Plan should cover all the other costs.

Which Plan Is Best For Me? Let’s Do Some Math!

To determine which plan is right for you, it’s essential to do some math. I know, no one likes doing math, but we’ll do it for you. The Plan G monthly premium varies depending on your sex, where you reside, and whether or not you smoke. The typical Plan G policy costs between $100 and $200. To show you why Plan G might be a better option than Plan F, let’s use a monthly cost of $125 for Plan G. For Plan F, the average is between $140 and $200, so let’s use $165.

As you can see below, if you take the $125 monthly premium for Plan G and multiply it by 12, your possible yearly out-of-pocket expenses would be $1,500. Once you add the Part B deductible of $203, you end up at $1,703. 

For Plan F, if you multiply the monthly premium of $165 by 12 months, your possible yearly out-of-pocket expenses are $1,980.

In the scenario described above, Plan G is the clear winner, despite the fact that it doesn’t pay for the Part B deductible.

Why Plan G?

Many people see that Plan F covers the Part B deductible and automatically assume that Plan F is the best plan. While it does offer good coverage, covering the Part B deductible alone doesn’t mean it’s the most affordable and most comprehensive plan. As you can see above, there are many circumstances where Plan G would actually be more affordable than Plan F. It’s important to learn as much as you can about Plan G and Plan F before deciding which one you want to purchase, assuming you have the option of purchasing Plan F.

Another important thing to note is that historically, Plan G has increased its monthly premiums more slowly over time than Plan F. This fact makes it more likely that you could save even more money by purchasing Plan G, despite the fact that you still have to pay the Part B deductible. 

We Can Help with Medigap Insurance Plans in KY

If you’re confused or just want some more information, please don’t hesitate to reach out to us. If you’d like us to check some numbers for you or do a few more math equations, we’re always happy to help. We will do everything that we can to figure out what is best for you. We can definitely help you make the best decisions to save you the most money on your health plan choices.

Categories: Medicare Articles, Medigap Plans, Medigap Eligibility, Medigap Coverage
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