Recently I was asked to compare an existing plan F against other carriers. This individual had Medigap plan F through USAA, 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.

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

The same is true for Blue Cross and AARP. They will be increasing rates for their policyholder in January as well. Even if you bought from them in October of 2012 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, USAA does not offer a plan G so they are impressively 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 benefit of seniors.

If you have plan F, particularly 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.

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.

I don’t know about you but that doesn’t sit well with me.

The Medicare Trust Fund Lie

Where does he think he has the right to tell me how to spend MY money? After all, they took money from us for years to pay for Medicare. Money that was supposed to be safely stored in a trust fund.

Only recently did Washington finally admit there is no trust fund, it was all a lie. They spent almost every dime we “invested” and now they want more.

I don’t think so.

More Rocket Surgeon Ideas from Washington

Some of the other big ideas from DC include:

An alternate approach, described by CBO in its 2012 report Budget Options, Volume 1: Health Care, and would impose a 5 percent excise tax on all Medigap insurers

Let’s think about this a moment.

If WE pay more out of pocket that will save the GOVERNMENT money.

Apparently they believe we won’t go to the doctor when we are sick if we have to pay for it.

That’s like saying I need new brakes on my car but I won’t get them fixed because my car insurance won’t pay for them.

Their second proposal is just as goofy. If the government places a 5% surcharge on Medigap carriers guess who pays that tax?

The people who buy the policies.

We believe that Medigap plan F is a good plan but there are better VALUES to be found in plan G and plan N.

We also believe Washington has no right to tell us what we can and cannot buy and how we should spend OUR money when it comes to health care and health insurance.