Choosing between Medigap Plan F & Plan G

Important: Plan F is not available to beneficiaries who became eligible for Medicare on or after January 1, 2020.

Medigap Plan G is a high-benefit plan that is commonly overlooked for the more-popular Plan F. However, Plan G is very similar to Plan F and may be cheaper in some cases.

The only benefit Plan F includes that Plan G does not include is coverage for the $240 annual Medicare Part B deductible in 2024.

If you're getting a quote for Plan F, it may be smart to also get a quote for Plan G. If the Plan F monthly premium is at least $16 higher than the Plan G monthly premium, you could be overpaying for the Part B deductible benefit, and Plan G may be the better deal.

Comparing benefits and cost

When comparing Medigap plans, benefits and premiums are two of the most important deciding factors. Keep reading to compare these factors for Plan F vs. Plan G.

Benefit differences

Both Plan G and Plan F provide high levels of coverage. Plan F includes all 9 Medigap benefits. Plan G has the same coverage except it does not cover the Medicare Part B deductible, which is $240 in 2024.

The following chart compares benefits for the two plans.

This small difference in benefits between Plan G and Plan F makes a huge impact when consumers choose a Medigap plan.

Danielle Kunkle, a licensed insurance agent and vice president of Boomer Benefits, said that when Medicare beneficiaries review the benefits chart in the guide to choosing a policy from the Centers for Medicare & Medicaid Services, they clearly see that Plan F is the only plan that offers full coverage and as a result tend to choose Plan F.

“F has a check mark in every box,” she said. “They want the one that covers all of them.”

Kunkle said that Medicare beneficiaries want to visit their doctors without worrying about any unexpected costs, however large or small. Plan F provides this freedom.

“People don't want to worry about paying a deductible,” she said. “They don't want to worry about any bills coming in the mail.”

Cost differences

Plan F usually comes with a higher cost than Plan G.

Kunkle says that, from her experience, Plan G and Plan F monthly premiums can differ by $30 or more in Texas, where her agency is based. She says the cost difference between the two plans has led some of her clients to choose Plan G over Plan F.

When you do the math, you can understand why. If you pay $30 more a month to have Plan F instead of Plan G, you'd be paying an extra $360 a year for an extra $240 in coverage in 2024.

“We can see the financial incentive in going with Plan G,” Kunkle said.

However, the price gap between Plan F and Plan G may not always be so large. The prices you are quoted will differ depending on the insurance company and your personal details.

Premiums can vary widely depending on the insurance company and the state in which you live.

Medigap plan competition

Despite the fact that Plan G can potentially save Medicare beneficiaries hundreds of dollars per year, 10 times more people choose Plan F compared to Plan G.

Plan F's popularity creates a snowball effect that further increases its enrollment. Kunkle says some of her clients follow other family members' suggestions. If one family member has Plan F, the other family member will enroll in Plan F as well.

“That's part of the reason why it continues to be the most popular,” she said.

[Could you save by choosing Plan G? Click here to find out]