When searching for the right Texas Medicare Supplement Insurance Plans for your specific needs, understanding all of the Plans A – N and how they cover out-of-pocket expenses is very important information to know. You do not want to pick the wrong Plan and find out that you are not covered for something when you thought you were.
In my years in insurance, the two most popular Texas Medigap policies were Plan F and Plan G, but there was a pretty significant difference in the old Plan G compared to the New Plan G. What I mean by old Plan G and new Plan G is the changes that were made on June 1, 2010. This is when the Federal Government released what are known as the New Modernized Medicare Supplements. Some Plans were removed and new plans were added, some basic benefits were removed and some were added, you can find out more about these changes by visiting our Medicare 2010 Page.
Staying with Medigap insurance Plans F and G, the way that both Plans cover your basic benefits is very similar to what it used to be. A Medicare supplement Plan F, either old or new, has always been known as the plan that covered 100% of what Medicare did not pay for of approved charges. Even with the new Modernized Medicare supplements, this statement still holds true. Click the link to see the benefits covered by a Texas Medigap Insurance Plan F.
As you can see, your risk of any out-of-pocket expenses on a Medicare supplement Plan F is nothing other than your monthly premium, when dealing with Medicare approved charges.
Now, as for a Medicare supplement Plan G, the recent change has made this Plan more popular and compressive for most people. Medigap Policy Plan G has never covered the Medicare Part B deductible. For 2010, this annual deductible is $155. The old Plan G also only covered 80% in excess charges of Medicare’s approved reimbursement rates. This left many individuals not knowing exactly what their out-of-pocket risk would be. With the release of the new Modernized Medicare supplements, this changed the 80% coverage of excess charges to 100%, meaning that the only difference between a Texas Medicare Supplement Plan F and Plan G is the annual Part B deductible. Click on the link the view the benefits covered by a Texas Medigap Insurance Plan G.
Why is this so important to know? This could be a way to obtain almost full coverage, but at a lower monthly premium than most Medicare supplement Plan F in Texas. It is simple math really. If the only difference between a Plan F and a Plan G is the Part B annual deductible, which is $155 for 2010, than you can do the math to see which Plan offers the lowest annual out-of-pocket cost.
Hopefully you can follow me with this. If you were to take the annual premium of a Medicare supplement Plan F in Texas and subtract that from the annual premium of a Medicare supplement Plan G in Texas, than you would have a total that you could subtract the Part B annual deductible from to see which plan offered the lowest annual cost.
Even if a Plan G is cheaper than a Plan F, do keep this in mind; every year your annual Part B deductible can change. It was $135 in 2009 and increased to $155 for 2010. So make sure that the difference in premium is substantial enough to make the right decision for your coverage. For more information on different Medicare supplement plans in Texas, contact an agent today for your free, no-obligation Texas Medicare Supplement Quotes.