Medicare Supplements Plans. Why I did not buy Plan F for myself.
My name is Jim Grude, and I’m the owner of Seniors on Medicare. You want to know why a broker who has worked in the Medicare supplement business for 25 years and when he went on Medicare he didn’t take Plan F, but rather he took out another one.
Give me three, four or five minutes of your time today and Ill prove to you why you should not take out Plan F and if you are already on Medicare why you should consider getting out of Plan F. One thing we should do first of all is there is a button up here, click on the button, it’s not going to close this down all it’s going to do is open another window on your browser and it is going to take you to my website. The benefit for you there is there are some documents that I am going to talk about today that’ll be there and you stop the video and look at them because you are probably on YouTube right now and I can't show them to you on YouTube but I can do it on my website.
Alright, there are three things I'm going to talk about today.
I want to talk about quickly, the plan that is more similar to Plan F, why you should consider that.
I am going to talk a little bit about rate increases with Plan F.
And lastly this is probably the most important thing, what's going to happen in 2020 with Plan F, big big change.
Okay, as a lot of you know, there are ten plans in the market today that Medicare authorizes insurance companies to sell. The closest thing to Plan F is what we call Plan G. if you look at the chart Plan F and Plan G are identical except one area, the Part B Deductible, that’s a $166 this year, next year might be a little bit different. Alright, well, what would be the benefit of taking up Plan G over Plan F, it's premium, what companies charge you. Go to the bottom of the screen and you will see some examples of what Plan F will cost in the 60152 zip code and you will see why you're looking at an average one of the about $300 a year difference in premium between the two and all they are doing is pay $166 for you. Guys at 75 years when they get older it’s huge, I’ve seen as much as a $1000 difference so it’s not worth it for you.
Secondly, rate increases, you are going to get rate increases and Plan F historically has gone up 3, 4, 5% more than Plan G. Again, down below I have some more examples about the different rate increases af Plan F. I actually have seen Plan G go down in premium whereas Plan F went up.
Lastly, in 2020 Congress and its infinite wisdom has decided that Plan F is going to be pulled off the market, no longer available to purchase, if you have it at that point, you get to keep it but the problem is you don’t want to keep it, no, there is no way. For this reason, Plan F in 2020 is going to be what we call a Closed group. If you look at it this way, you might be with whatever company in the state that you live in and you have Plan F, that group of people with that company is a group. As Time goes on, people will leave the plan, people will die off and as the group gets smaller and smaller in numbers less premium dollars come in to support the claims. What’s going to happen when the company starts having a high claim experience? They are going to raise rates, now don’t think they are just going to say we can’t raise our policyholders rates to pay for the claims, or we will eat them, they don’t do that, that’s not the real world.
I will give you an example, last week I had a gentleman call me aged 72 and back in 2009, he bought plan J. Plan J has got taken off the market and really what aggravates me is that when he bought that plan the agent that sold it to him knew it. He knew that this plan was going to be taken off the market, that’s the worst type of agent there is. Alright, now today, he is paying for Plan J $325 a month, now he has some health problems so I was able to look at all the companies. I work with about 30 different companies and I can genuinely find coverage for people. I was able to find him coverage, I couldn’t find him the cheapest because of his health problems but I did find him one and that’s going to cost him $195 for Plan G. So he is saving over $1500 a year just by changing and so think about the information I have just given you and there is one other thing that I would like to talk to you about and it’s this, if you are going to go with Plan G or F or whatever plan you are going to go about, there is something that’s actually as important as insurance company and the policy you go with, it’s the broker that you buy it through.