The Ultimate Guide to Medicare Supplement Plan G in 2020

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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

Medicare Supplement Plan G Comparison Chart for 2020

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

What is the deductible for Plan G in 2020?
With Plan G, the only deductible you’re responsible for is the Part B deductible, which is $198.
Does Medicare Plan G cover prescriptions?
For any medications given in an outpatient setting that fall under Part B, Plan G will cover any coinsurance. But, when it comes to prescriptions that you pick up from the pharmacy, you’ll need a separate drug plan.
Does Medicare Supplement Plan G have high rate increases?
Another reason this is a favorite supplement plan among beneficiaries is due to the history of lower rate increases. When compared to Plan F, Plan G has a smaller rate increase from year to year.
Which is better, Medicare Plan F or Plan G?
This is the question we get asked the most when clients are inquiring about Plan G. The answer comes down to the cost difference between the plans monthly premiums and the Part B premium.

If you multiply the monthly premium for Plan F x 12 months, and then Plan G x 12 months and the difference between the two is more than the Part B deductible of $198, then it might make sense for you to switch to Plan G.

For example, if you’re currently enrolled in Plan F, and the monthly premium is $180, then you’re paying around $2,160 a year for the plan. If you’re enrolled in Plan G, and the monthly premium is $150, then you’re paying around $1,800 a year for the plan.

That’s a $360 a year cost difference.

Since the only difference between both plans in the Part B deductible of $198, if you switch to Plan G, you would be saving around $162 a year in premiums. ($2,160-$1,800 = $360 – $198 = $162) Also, if you already met the Part B deductible, you wouldn’t pay the deductible again until the following calendar year.

Is Plan G a Guaranteed Issue plan?
Previously, Plan G was not a Guaranteed Issue plan. That means those with Guaranteed Issue Rights could not use those rights to enroll in Plan G.

Once again, these rules changed due to MACRA. For those who were eligible for Medicare before 2020, those rules still apply.

But, if you’re newly eligible for Medicare starting this year, you can use these rights to enroll in Plan G. This is because you’re not eligible for Plan F, which does accept Guaranteed Issue.

Is Medicare Plan G going away?
No, Plan G is not a first-dollar coverage plan. You can continue to sign up after 2020. Only first-dollar coverage plans, such as Plan F and Plan C, will be eliminated.

How to Enroll in Medigap Plan G

Medicare is NOT easy to understand. It changes from year to year, and sometimes more! Our job at MedicareFAQ is to help you learn on all things Medicare. We work around the clock to make sure our clients are well educated on their Medicare options.

Our services are 100% free to you. We work with dozens of carriers to guarantee you’re getting the best possible rate that’s available in your area.

Give us a call today at the number above or fill out an online rate form and discover the options in your area now!

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