Part 1: Plan G is frequently an attractive alternative to Plan F

You are accustomed to selling Attained Age Plan F Medicare Supplements.  Why not?  Plan F covers essentially all gaps in coverage left by Original Medicare and even protects the client from a provider’s excess charges.

Here’s why you may want to rethink your reliance on Attained Age Plan F for your Medicare Supplement sales.

1. Plan F for many carriers has become an aging block of business.  As production slows, rates have a way of creeping up.  In addition to normal 4-5% rate increases associated with a client getting a year older, carriers will have 8-12% rate increases based on claims experience.  This results in two rate increases per year for an average 12-18%.  It only takes a year or two for the client to express concerns about the premium associated with their Medicare Supplement Plan F.
   
   
2. One method carriers have employed to make coverage affordable is Plan G.  However, on Plan G your client pays 20% of Part B excess charges.  Since roughly 90% of providers accept Medicare assignment (percentages vary somewhat by state), client exposure to excess charges is much less of a risk as it was years ago.  Plan G is particularly appealing for clients whose provider accepts Medicare assignment.
   
   
3. Remember that Plan G does not cover the Part B deductible.  If a client requires care, that cost is covered by Plan F but for Plan G, the client would have to pay the 2007 Part B deductible of $131.  Therefore, it makes sense that the Plan G rate should be at least $131 less expensive than the Plan F rate.  In many cases, the annual premium for Plan G is lower by $200 or more, making it an attractive rate.
   
   
4. Plan G provides an At-Home Recovery benefit which pays up to $40 per visit for additional, non-Medicare covered visits to assist your client with activities of daily living during recovery from an illness, injury or surgery.  The policy pays a maximum of $1,600 per year.  Plan F does not cover At-Home Recovery benefits.
   
   
5. Plan G is not required to provide guarantee issue to those coming into the market from a Medicare Advantage disenrollment.  As a result, Actuaries can price the Plan G with less worry about the adverse selection associated with guarantee issue should a Medicare Advantage plan fail and terminate coverage for its members.

Compare the rates available in your state and know the benefit differences between plans.  A Medicare Supplement Plan G may be a good buy for your client, particularly if their doctor accepts Medicare assignment.

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