Warning! Do not enroll in the Advantage Policy F
If you think this subject is quite dramatic, I guarantee you that is not the case. The following information is important for anyone considering a Medicare F supplement policy. The F Policy has long been the most popular of standardized policies. However, you must explore all options and become aware of potential dangers before enrolling. I would also like to share the following information with basic information about myself. I worked for 27 years in the market for seniors. For most of that time, I worked on the design and pricing of Advantage policies. I am an expert in the field.
New agents and indolent agents sell Policy F Medicare advantage https://www.medicareadvantageplans2019.org. It is true. Insurance agents like to sell an F policy. They pay a higher commission and most buyers usually hear about it from a friend. Because it’s very popular, it is a much simpler presentation. Pay attention to the agents who prompt you immediately to choose policy F. To say generally that the policy F is the best is false and irresponsible. If they say it is the “Cadillac Policy” because it insures 100%, end the call. Listening to the “Cadillac Policy” it sounds good, but the price is expensive. Insurance companies also love Policy F. It offers benefits that you will probably never use, as well as other very profitable ones for the company. Therefore, they always announce policy F.
If the only difference between a policy F and a policy G is the deductible part B, why is the price difference much greater? The Medicare Part B benefit is currently $166 per annum. However, if you compare policies, it is not uncommon to find $300 – $600 above the G policy. Insurance companies call this difference a “tax on consumption”. Why not put the “burden of indulgence” right in your pocket and pay for the deductible? Surplus taxes are not a huge issue. The real situation is that many doctors permit Medicare assignment and it’s simple to know whether the doctor does it or not. If you do not need it, why should you pay for this service?
Much worse, it is illegal for doctors to apply for Medicare authorization in some states, but many agents still sell to their customers, the policy F. Don’t be trapped in a Advantage F policy! This is by far the reason most convincing for not having an F policy. By 2020, the F policy will end. Anyone who already has this policy will have permission to maintain it. Do not keep this policy! New sales will stop, there will be no younger and healthier people who will join the policy and who will exceed the costs of older policyholders. Prices must increase as there is rise in interest rates, anyone who can meet the subscription conditions will switch to another policy. This will only worsen the situation. If you remain trapped with Policy F after 2020, you may see ridiculous double-digits increases year-after-year. A similar situation occurred with Policy J after its withdrawal from the market in 2010.