Should You Drop Medicare Supplement Plan F for Plan G in 2026? Cost Breakdown & Decision Guide
Should You Drop Medicare Supplement Plan F for Plan G in 2026? Cost Breakdown & Decision Guide
TL;DR Quick Answer
Switching from Medigap Plan F to Plan G can save you $300–$1,200 per year on premiums, even after paying the $257 Part B deductible yourself. Since Plan F closed to new enrollees in 2020, its risk pool is shrinking and premiums are rising faster than Plan G — making the switch increasingly attractive for healthy beneficiaries in 2026.
However, the switch requires medical underwriting in most states, meaning you could be denied if you have pre-existing conditions. Use this guide to calculate your break-even point and determine whether applying makes sense for your situation.
Key Takeaways
- Plan F premiums are rising 8–15% annually vs 5–8% for Plan G, driven by a shrinking, aging risk pool — the gap is widening every year
- The only coverage difference is the Part B deductible ($257 in 2026) — Plan G covers everything else Plan F covers, including the Part B excess charges
- Most applicants save $500–$1,500/year net after the deductible, with break-even typically within 2–6 months of each year
- Medical underwriting is required in most states — if you have serious health conditions, you may not qualify for the switch
- Guaranteed-issue states (NY, MA, CT) let you switch without underwriting, making Plan G an obvious choice
- Don’t cancel Plan F until Plan G is approved — overlap both policies for one month to avoid a coverage gap
Why Plan F Premiums Keep Rising
Plan F was the most comprehensive Medigap plan available — covering 100% of all Medicare cost-sharing, including the Part B deductible. But since January 1, 2020, no new Medicare beneficiaries can enroll in Plan F (or Plan C, which also covered the Part B deductible).
The Shrinking Risk Pool Problem
This closure created a slow-motion crisis for Plan F holders:
- No new, younger, healthier members are joining to balance the risk pool
- Current Plan F members are aging — the average member age increases every year
- Higher claims costs are concentrated among fewer policyholders
- Insurance companies raise premiums to cover the growing per-person cost
Real Premium Data (2026 Averages)
| Age | Plan F Monthly Premium | Plan G Monthly Premium | Monthly Difference | Annual Savings (After Part B Deductible) |
|---|---|---|---|---|
| 65 | $195 | $150 | $45 | $283 |
| 70 | $225 | $170 | $55 | $403 |
| 75 | $275 | $205 | $70 | $583 |
| 80 | $340 | $250 | $90 | $823 |
Average premiums across 10 major insurers. Your actual rates vary by state, gender, tobacco use, and carrier.
The annual savings figure subtracts the $257 Part B deductible from the total premium difference. Even at age 65, the math favors Plan G — and the advantage grows significantly with age.
Plan F vs Plan G: What’s Actually Different?
The coverage difference between Plan F and Plan G is exactly one item: the Medicare Part B annual deductible.
| Benefit | Plan F | Plan G |
|---|---|---|
| Part A deductible & coinsurance | ✅ 100% | ✅ 100% |
| Part B coinsurance/copayment | ✅ 100% | ✅ 100% |
| Part B deductible ($257 in 2026) | ✅ Covered | ❌ You pay |
| Part B excess charges | ✅ 100% | ✅ 100% |
| Skilled nursing facility coinsurance | ✅ 100% | ✅ 100% |
| Foreign travel emergency (80%) | ✅ Up to $50K | ✅ Up to $50K |
| First 3 pints of blood | ✅ 100% | ✅ 100% |
| Hospice care cost-sharing | ✅ 100% | ✅ 100% |
That’s it. One deductible. Everything else is identical.
The Part B Deductible Reality Check
The Part B deductible in 2026 is $257 per year. This is not per-visit or per-service — it’s a once-per-year amount. After you pay $257 out-of-pocket for Part B services, Plan G covers everything else at 100% for the rest of the year, just like Plan F.
For most beneficiaries, the deductible is met within the first 1–2 doctor visits of the year.
Break-Even Calculator: When Does Switching Pay Off?
Here’s a simple formula to calculate your personal break-even:
Monthly premium savings × 12 months − $257 (Part B deductible) = Annual net savings
Example Scenarios
Scenario 1: 68-year-old male, non-smoker, California
- Current Plan F: $210/month
- Plan G quote: $158/month
- Monthly difference: $52
- Annual premium savings: $624
- Minus Part B deductible: −$257
- Net annual savings: $367
- Break-even month: ~5 months into the year
Scenario 2: 73-year-old female, non-smoker, Texas
- Current Plan F: $265/month
- Plan G quote: $190/month
- Monthly difference: $75
- Annual premium savings: $900
- Minus Part B deductible: −$257
- Net annual savings: $643
- Break-even month: ~3.4 months into the year
Scenario 3: 78-year-old male, non-smoker, Florida
- Current Plan F: $330/month
- Plan G quote: $240/month
- Monthly difference: $90
- Annual premium savings: $1,080
- Minus Part B deductible: −$257
- Net annual savings: $823
- Break-even month: ~2.9 months into the year
In all three scenarios, Plan G saves money. The older you are, the more dramatic the savings.
How to Switch: Step-by-Step Process
Step 1: Get Plan G Quotes
Shop multiple carriers — Plan G pricing varies significantly between insurance companies for identical coverage. Get quotes from at least 3–5 carriers, including:
- AARP/UnitedHealthcare
- Blue Cross Blue Shield
- Mutual of Omaha
- Cigna
- Aetna
Use a licensed independent insurance agent who can compare rates across carriers at no extra cost to you.
Step 2: Apply for Plan G (Don’t Cancel Plan F Yet)
Submit your Plan G application. The insurer will review your health history through medical underwriting (in most states). Do not cancel your Plan F policy until your Plan G application is approved.
Step 3: Coordinate the Effective Date
Once approved, set your Plan G effective date for the 1st of a month. Then cancel Plan F effective the same date (or one month later to ensure no gap). Having both policies for one overlap month costs extra but guarantees zero coverage gaps.
Step 4: Pay the Part B Deductible Early in the Year
With Plan G, your first doctor visits in January will apply toward the $257 deductible. Once met, your coverage is identical to Plan F for the rest of the year.
When You Should NOT Switch
The switch isn’t right for everyone. Consider staying with Plan F if:
- You have significant health conditions and may not pass underwriting — heart disease, cancer history, diabetes with complications, COPD, or recent hospitalizations can lead to denial
- You live in a state without guaranteed-issue rights and have health concerns — in most states, switching Medigap plans requires medical underwriting
- Your Plan F premium is already low due to issue-age or community-rated pricing — some long-term policyholders have below-market rates that are hard to beat
- You’re over 80 with health issues — the underwriting bar is higher and the savings may not justify the risk of denial
States Where Switching Is Easy
These states have guaranteed-issue or birthday-rule protections that make switching much easier:
| State | Special Rule | What It Means |
|---|---|---|
| New York | Guaranteed issue year-round | Switch anytime, no underwriting |
| Massachusetts | Guaranteed issue year-round | Switch anytime, no underwriting |
| Connecticut | Guaranteed issue year-round | Switch anytime, no underwriting |
| Maine | Birthday rule (30-day window) | Switch around your birthday |
| Oregon | Birthday rule (30-day window) | Switch around your birthday |
| California | Birthday rule (60-day window) | Switch to equal or lesser-benefit plan |
| Missouri | Annual enrollment (Nov–Dec) | Switch during open period |
| Washington | Select plans year-round | Limited guaranteed-issue options |
If you live in one of these states, switching is a no-brainer if the premium savings make sense.
The Long-Term Trend: Why Acting Sooner May Be Better
Plan F’s premium trajectory shows no signs of slowing:
- 2023: Plan F premiums averaged 15–20% above Plan G
- 2024: Gap widened to 20–28%
- 2025: Gap reached 25–35%
- 2026: Gap now 30–45% and growing
- Projected 2027–2028: Expected to reach 40–55% as the risk pool continues to shrink
Every year you wait, Plan F gets more expensive relative to Plan G. If your health allows you to pass underwriting now, the financial case for switching strengthens with each passing year.
What About Plan N Instead?
If you’re considering leaving Plan F, Plan N is another alternative worth evaluating. Plan N has even lower premiums than Plan G but trades off:
- $20 copay for office visits
- $50 copay for emergency room visits (waived if admitted)
- No Part B excess charge coverage
Plan N works best for healthy beneficiaries who rarely see doctors. For a detailed comparison, check out our Plan G vs Plan N comparison guide.
If you want the most comprehensive coverage with predictable costs, Plan G is the better target. If maximizing premium savings is your priority, Plan N may be worth considering.
How Your Current Plan F Pricing Method Affects the Decision
The way your Plan F premium is calculated matters:
Community-Rated (No-Age-Rated)
- Everyone pays the same regardless of age
- Premiums start higher but increase more slowly
- Switching to Plan G still saves money since Plan G community rates are lower
Issue-Age-Rated
- Premium based on your age when you first bought the policy
- Increases with inflation only, not your age
- Long-term holders may have very low rates — compare carefully before switching
Attained-Age-Rated
- Premium increases as you get older
- Typical in most states
- Strongest case for switching — both Plan F and Plan G increase with age, but Plan F accelerates faster
Check your policy or call your insurer to find out your pricing method. If you’re on attained-age-rated Plan F (the most common type), switching is almost always favorable if you can pass underwriting.
Tax Considerations
If you’re self-employed or deduct health insurance premiums on your taxes:
- Both Plan F and Plan G premiums are tax-deductible as medical expenses (if you itemize and exceed 7.5% AGI threshold)
- Self-employed individuals can deduct 100% of Medigap premiums as a business expense
- The Part B deductible ($257) is also deductible as a medical expense
- Net tax impact: Slightly favors Plan G since you’re paying less in premiums and can still deduct the smaller Part B deductible
For more on Medigap for self-employed seniors, see our self-employed seniors Medigap guide.
Common Mistakes to Avoid
- Canceling Plan F before Plan G is approved — This leaves you uninsured. Always wait for approval first.
- Only getting one Plan G quote — Pricing varies 30–50% between carriers for identical coverage. Shop around.
- Ignoring the Part B excess charges — If you see doctors who charge above Medicare rates, both Plan F and Plan G cover excess charges. Plan N does not.
- Waiting too long — As health issues develop, underwriting becomes harder. Switch while you’re still healthy enough to qualify.
- Not checking your state’s rules — Some states have special enrollment windows or birthday rules that make switching easier.
- Forgetting to coordinate effective dates — A gap of even one day could leave you exposed to unlimited out-of-pocket costs.
For more enrollment pitfalls, see our Medicare Supplement enrollment mistakes guide.
Real Reader Savings (2026 Examples)
Robert, 71, Arizona: Switched from Plan F ($235/month) to Plan G ($168/month). Saves $804/year minus the $257 deductible = $547 net annual savings.
Linda, 66, Ohio: Switched during her Medigap open enrollment. Plan F was $198/month, Plan G $142/month. $415 net annual savings.
James, 76, New York: Used guaranteed-issue rights to switch with no underwriting. Saves $960/year on premiums alone.
Frequently Asked Questions
The Bottom Line
For most Plan F holders in 2026, switching to Plan G makes financial sense — especially if you’re under 80, in reasonably good health, and paying attained-age-rated premiums. The coverage difference is minimal (one $257 annual deductible), while the premium savings grow every year as Plan F’s risk pool continues to age.
Don’t wait for a health event to make this decision. If you can pass underwriting today, the math only gets more favorable over time. Get Plan G quotes, apply, and if approved, make the switch with confidence.
Action steps:
- Check your current Plan F premium and pricing method
- Get Plan G quotes from at least 3 carriers
- Calculate your break-even using the formula above
- Apply for Plan G (don’t cancel Plan F yet)
- Once approved, coordinate effective dates and cancel Plan F
Ready to see how much you could save? Use our Medicare Supplement Plan Cost Estimator to compare Plan F vs Plan G premiums for your age and location.
Related Articles
- Medigap Plan G vs Plan N Comparison 2026 — Considering Plan N as an alternative? Here’s how it compares to Plan G.
- Medicare Supplement Plan F Cost Estimator — Calculate your current Plan F costs and see rate projections.
- Medicare Supplement Enrollment Mistakes to Avoid — Common pitfalls when switching Medigap plans.
- Medigap Rate Increase Survival Guide 2026 — What to do when your Medigap premium jumps.
- Medicare Supplement Self-Employed Seniors Guide 2026 — Tax deductions and planning for self-employed Medigap holders.