Close Look At Medigap

Do You See What I See? Plan F vs Plan G. Unnamed location, 70 years old. These are the rates for Medigap at a single carrier.

This is very, very instructive.


Plan G and Plan F are identical in every way, except that under Plan F, you do not need to pay the Part B deductible, which is $233, which is $14.91 a month.

Now look at the prices, that means that your cost is:

$143.97 (Plan G) + $14.91 (=$233/12) = $158.96. This is what Plan F “should be.” It never is, it is higher, due to the idea of a “convenience tax” as stated in the video, now years old.

The market price is $160.90, that means that you are paying $160.90-$158.96 = $1.94 a month in order to avoid dealing with the administration of the Part B deductible.

Plan F is 100% worth it in this instance. There are errors in administering the Part B deductible. Plan F has no such thing, since the Medigap carrier is paying the Part B deductible.

More importantly: what happened to all the naysayers that said that Plan F would skyrocket due to the fact that there are no new applicants (true, for the most part). This is quite the opposite of “skyrocketing.”

Rather, this is what happens when a) the underqualified spew out fancy opinions without understanding that there is math, and then on top of that, b) those gurus aren’t fully equipped to described the competitive marketplace.

If anything, this should attract those that either qualify, or can get access via a Special Enrollment Period (like if they retire, HMMM). That’s the bottom line.

Uh, which I stated in the original video. Onwards….