F Over G

[Itworks]

How do you determine which plan is best. Explain one pays 100% deduct vs 80% and one has at home recovery and one doesnt? I guess I need to understand how to run the numbers... Plan F is $96.58 female/ 101.68 male. G 82.09 female, 86.43 male...

 

[Sam12]

The only difference between plan F and plan G is that plan F pays the $155.00 deductible and Plan G doesn't. If plan F is more than $155.00 more a year it just makes sense to put folks on a plan G.

 

[Guest]

However you have to take into account that the deductible for Part B rises nearly every year. So in 5 or 10 years will a plan G still be cheaper than an F? Probably, but who knows....

Also, you need to take into account your prospect. Sometimes I'll sit down with someone and they don't want to pay anything at the doctor. Not one cent. Even if a Plan G would save them money when you take into account they pay their own deductible, they won't have it because they have to pay money once or twice a year at the doctor's, until the deductible is met.

As far as running the numbers, its easy. For a 65 year old Female non smoker....

Plan F: $105 per month.
Plan G: $89 per month.

Plan F: 105 x 12 = $1260 per year.
Plan G: 89 x 12 = $1068 per year.

$1260 - $1068 = $192 difference per year.

Part B deductible is $155 per year.

$192 - $155 = $37

Therefore it would save the prospect $37 per year to go with the G over the F.

 

[Itworks]

Okay, makes sense. So, for my rates they would save $18.88 a year with plan G, so its really just personally preference more than anything..... Now, plan G does pay at home recovery, but F does not. Wouldnt that be a factor as well??

 

[Frank Stastny]

Okay, makes sense. So, for my rates they would save $18.88 a year with plan G, so its really just personally preference more than anything..... Now, plan G does pay at home recovery, but F does not. Wouldnt that be a factor as well??

I believe you are looking at the "old" Plan G.

In the past when companies had a separate increase for the plans they offer as opposed to an across the board increase where every plan is increased by the same percentage Plans D and G typically have had a smaller percent of increase. At least that has been my experience.

One can bet that when Part B increases so will the cost of Plan F. Insurance companies are not in the business to lose money. There was one agent on here a couple of years ago that said he represented a company where Plan D was more expensive than a Plan F. I don't think he identified the name of the company.

 

[Itworks]

yes, I was looking at Mutuals old plans. As of june 1- F & G only difference is F pays the $155... So, again since there is only $18 difference which one do you suggest??

 

[ksigmtsu]

G is cheaper overall. The key difference also is that G will remain cheaper when the deductible is raised from 155 to something higher, where the F will see a steeper price increase. I've been selling mostly G and pointing that out. Also gives you the fun of when a new agent comes along they're going to quote F first and make your prices look great if they don't notice.

 

[Frank Stastny]

yes, I was looking at Mutuals old plans. As of june 1- F & G only difference is F pays the $155... So, again since there is only $18 difference which one do you suggest??

I educate my prospect and will always recommend a Plan D unless the company doesn't offer D and then I will recommend a G unless when taking the Part B deductible into consideration Plan F is a better value/lower premium for them.

Many agents I have worked with in the past will say sell Plan F because it is "easier to sell". I don't think that is a good enough reason.