Why arent high deductible medigap plans more popular?

[jack3454]

I did an analysis for a plan G and high deductible G over 10 years. The G plan would cost $15,700 for 10 years and the HD G would be $6,150 for the premium for 10 years. Also added in the deductible of $2800 for 3 of the 10 years, and the total HD G premium and the $2800 deductible comes out to $14,550…still less than the premium alone for Part G for those . Even the Plan N can’t compete at $11,400 for 10 years premium alone. Why wouldnt everyone be getting this plan? Am I missing something?

Edit: Yes I messed up on the maths. Stupid excel!

 

[hockeyday]

I did an analysis for a plan G and high deductible G over 10 years. The G plan would cost $86,400 for 10 years, and the HD G would be $33,825. I also added in the deductible of $2800 for each of the 10 years, and the total HD G premium and the $2800 deductible every year comes out to $61,825…STILL less than the premium for Part G for those 10 years. Why wouldnt everyone be getting this plan? Am I missing something?

Lol, that the most math I've seen in a long time, how did you come up with that

 

[ValeRosso]

Your math is wayyy off. $130 plan G times 12 months is $1560. times 10 years is $15,600. Where did you get another $70,000?

 

[jack3454]

I corrected the math in original post.

 

[Chazm]

It most likely is the better buy. But what’s easier for a T65 to understand? You pay a $240 deductible this year and then anything Medicare approved is covered 100%.

Or, you pay less per month and have a $2800 deductible on Medicare approved charges and assuming you’ve met the part B deductible, pay $0? People like to know they can pay X amount of dollars and be nearly fully covered. I work with a guy who used to primarily do only HDG. He’s realized that he loses all that biz to MAPD.

 

[LostDollar]

Am I missing something?

Caveat, I am not an agent.
COMMISSION, COMMISSION, COMMISSION

What I have consistently been told is Medicare agents can't make a living presenting and selling HD F & G plans. For example, there is an agent who gave me some encouragement about buying an HDF plan when I first joined the forum, who now hammers me hard -- using that commission detail -- almost any time I mention HD plans.

I also think annually increasing deductible amount compared to declining MAPD OOP + the extra benefits of MAPD are going to reduce the desirability of HD plans to consumers.

 

[InsuranceGuy29]

Because paying a good sum for a premium every single month and then telling someone absolutely nothing is covered until you pay another $2,800 is a very hard sell, psychologically. If you're gonna do that, you're honestly much better off with a Medicare Advantage plan in most cases.

 

[Midlevel]

Because paying a good sum for a premium every single month and then telling someone absolutely nothing is covered until you pay another $2,800 is a very hard sell, psychologically. If you're gonna do that, you're honestly much better off with a Medicare Advantage plan in most cases.

But, but, but, what if they have to go to Miracle Whip??? Always better off on a Med Sup just in case.

 

[LostDollar]

Because paying a good sum for a premium every single month and then telling someone absolutely nothing is covered until you pay another $2,800 is a very hard sell, psychologically. If you're gonna do that, you're honestly much better off with a Medicare Advantage plan in most cases.

Caveat, not an agent

you're honestly much better off with a Medicare Advantage plan in most cases

Who are you considering to be "you" here, the agent or the consumer?

 

[Bevo]

Caveat, I am not an agent.
COMMISSION, COMMISSION, COMMISSION

In many cases with agents, it's true about the commission. However, for many of us who've been in the business a great while with agents, commission is the very last thing we think of.

For agents who are desperate, broke, and selfish, then yes.

Also, an agent's biggest mistake is to keep thinking that money is always the main motivator for everyone. It's not. But the only way you find out is if you ask questions and listen to them.

Many people who are even on a more limited budget but don't want an advantage plan will opt for Plan N or even G over an HDG for its simplicity. Keep ramming savings down their throats while they're more worried about ease of use and health issues, and you can quickly expect the "let me think about it" response.

It's the equivalent of "I love you, but I'm not IN love with you" in the relationship world. Do your job properly, and you won't have this issue.

Often, when you start explaining HDG to people, many will respond "No, I don't want that". Okay, moving right along...

If you continually go into your calls assuming everyone just wants to save every penny no matter what, a better agent who understands human behavior and buying motives will easily get that deal from you.