Pages

Medigap F Over the Top

Medigap plan F is quite popular in Georgia, but is it a good value? Not in my opinion. Plan F is one of the highest cost Medicare supplement plans and in most cases is way overpriced.

Recently I was asked to compare an existing plan F against other carriers. This individual had a BCBSGA Medigap plan F, a very solid and competitive carrier. His current rate was $10 less than my best rate for the same plan.

But the story doesn't stop there.

BCBSGA uses a community rating system and will be increasing everyone's rates in January, 2012.

The same is true for USAA and AARP. They will be increasing rates for their policyholder in January as well. Even if you bought from them in October of 2011 your rates will increase in January.

What fun is that?

At this point we don't know how much the rates will change but they will go up.

If he bought the same plan F now (from a different carrier) his rate would hold for 12 months.

While we can't calculate the savings now for plan F vs. his new rate, I can tell him with certainty that enrolling in plan G will save him more than $300 per year vs. his current plan. Also, some Medigap carriers do not offer a plan G so they are effectively saying this is what we offer, take it or leave it.

Medigap plan F is the most popular so many carriers will price that product competitively on new business but will not be as aggressive on the value oriented plans such as G.

The spread will become more pronounced over the years as Medicare supplement plan F usually has higher rate increases than the other plans. So over time, plan F becomes increasingly more expensive while the other plans deliver more value.

Medigap plan F is a ripoff that is heavily promoted by carriers and agents that seek to take advantage of seniors.

If you have plan F, especially with a carrier such as AARP, Blue Cross, or USAA you should compare Medigap rates now and lock in a lower rate for 12 months.money down the drain

Unless of course you just like paying more . . .

When you pay more you don't get more, it simply means you paid too much. That's just like pouring money down the drain.

0 nhận xét:

Post a Comment