ORIGINAL MEDICAREThe Ultimate Guide to Medicare Supplement Plan G in 2020
Once upon a time, Medicare Supplement Plan G was the runner up among supplement plans. It’s now moved on up to become the most popular plan. Why? Because those who were not eligible for Medicare until after 2020 are not eligible for Plan F. But, Medicare Plan G is very comparable to Plan F. In fact, those eligible for both tend to go with Plan G. Let’s take a look at the details of Plan G and see if this is an option that would work for you.
What is Medicare Supplement Plan G?
Medicare Supplement Plan G is one of the many Medigap plans that cover the costs you’d incur with only Medicare.
Plan G is Great for Those Who:
- Want comprehensive coverage
- Want a plan with stable rate increases
- Don’t want out of pocket costs like copays or coinsurance
- Live in a state(s) that allow excess charges
- Travel outside the U.S. to vacation
What Does Medicare Supplement Plan G Cover?
Anything that Medicare covers, Plan G will also cover, minus the outpatient deductible of $198. It covers your inpatient hospital costs, as well as outpatient. Inpatient is any services you receive at the hospital; those fall under Part A. Outpatient is any services you receive at the doctors’ office; those fall under Part B.
Also, if you enjoy traveling overseas, Plan G covers up to 50,000 in foreign travel emergency benefits.
How Does Medicare Plan G Work?
We understand Medicare is complicated, so let’s take a look at a real-world example of how not having Plan G could affect our friend Roger.
Imagine Roger ends up in the hospital due to an illness. That illness left him in the hospital for a few weeks, as well as multiple follow up visits and tests with his doctor.
Part A covers 80% of inpatient care after a deductible of $1,408 is met. Then, Part B pays 80% for the follow-up visits after Roger pays the Part B deductible.
Roger’s follow up doctor visits and tests had a total cost of $30,000, he’s left to pay 20% of that.
Thus, leaving his total costs to be $4,000 + the Part A deductible for $1,408 + the Part B deductible of $198.
We see how costly a crisis could become without Medigap, but what would the difference make? Let’s take a look.
What if Roger Has Plan G?
Now, if Roger had Medigap Plan G, his carrier would pay all the above minus the Part B deductible. Instead of a statement that would’ve been over $5,600, he would’ve only had one bill for $198.
Although, if he already paid the annual deductible from a previous visit, he wouldn’t have a bill at all. All of Roger’s medical expenses would’ve been 100% covered.
The above example is using a minor illness; a severe illness could be financially disastrous.
If you want to learn about Medicare Plan G reviews, you can. But, to give you an idea, Medigap Plan G has A+ ratings.
Yet, the down-fall to all Medigap plans, they don’t include Part D. You’ll need to buy a separate policy for drug coverage.
Medicare Supplement Plan G Comparison Chart
How Much Does Medigap Plan G Cost?
The average monthly premium for Plan G is around $110. But, the cost of Medigap depends on many different factors.
Standardized benefits mean the benefits remain the same even when you choose a different carrier. The only difference between Plan G with one carrier vs. another carrier is the cost. You may find that the same plan, with the same benefits, costs less with a different carrier.
Further, location is a HUGE factor in cost. The premium is different from state to state.
That’s why it’s essential to work with an agent that works with multiple carriers. Using this method of research ensures you get a non-biased quote & can compare all carriers side by side.
For instance, if you live in Florida, the average monthly premium for Plan G could be anywhere between $160-$200. If you live in Texas, the average monthly premium is between $96-$205.
Now, if you live in a state that has a lower cost of living, you can expect to pay a little less.
Plan G for Those Under 65
If you’re on Medicare & under 65, you may not be able to enroll in a Medigap plan. Not all states offer these plans to beneficiaries under 65.
If your state does offer plans to those under 65, the premiums are astronomical. There are a few states that don’t increase your premiums if you’re under 65. Some states are Illinois, Tennessee, and Pennsylvania.
What’s an Alternative to the Standard Plan G?
For those looking for a smaller monthly premium without sacrificing benefits, there is an alternative to the standard Plan G.Now, this plan is very new. Due to the MACRA changes, High-Deductible Plan G was introduced in 2020.
The plan offers beneficiaries a lower monthly premium in exchange for a high deductible. The deductible is $2,340.
If we go back to or above cost example, the High Deductible Plan G has a monthly premium of around $46 in Florida and $30 in Texas.
What if I don’t want a High Deductible Plan?
Another good alternative is Plan N. Plan N has a small copay for ER visits & doctor visits. There is a loophole with this. If you go to an urgent care center, there is no copay!
In exchange for the higher copays, you’ll have a lower monthly premium. For example, in Florida, the premium for Plan N starts at around $130. The premium in Texas begins at about $80.
Plan N is a good alternative for those who are looking for a lower monthly premium without having to meet a high deductible before their benefits kick in.
FAQ’s
How to Enroll in Medigap Plan G
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