What is the Deductible for Medicare Supplement Plan G?
Medigap Plan G is a supplemental medical insurer filling in the gaps left by Original Medicare Parts A & B.
With the rising healthcare costs in the United States, a supplementary plan is no longer something that’s “nice to have.” It’s a necessity.
The last thing you need is to be left with a huge medical bill to pay after an extended hospital stay. Likewise, if you visit the doctor, Medicare might not cover the full amount for the consultation, leaving you with an excess charge to pay.
Medigap Plan G covers all these costs and more. It’s the most comprehensive Medigap plan available, ensuring you don’t have to pay additional fees for your annual healthcare requirements.
Understanding how premiums and deductibles work can be challenging for most newcomers to Medicare.
- What is the deductible for Medicare Supplement Plan G?
- What are the premiums?
- What kind of cover do you get with your policy?
We’ll answer everything in this post.
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We’ll give you all the information you need on Medicare and Medigap Plan G to make an informed decision on whether it’s the right plan for your healthcare needs.
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Understanding the Deductible for Medigap Plan G
Medigap Plan G covers most of your inpatient and outpatient medical costs that Original Medicare doesn’t. You’ll reduce your out-of-pocket expenses for your healthcare with this plan.
Plan G has a “Part B” deductible you’ll need to pay to access its benefits, which is $226 in 2023.
Along with your monthly premium, the Part B deductible is the only expense you’ll incur for your healthcare expenses, outside of preventative care and medication, during the year. Your outpatient expenses apply to the new calendar year deductible each year until you reach the Medicare specified amount.
Medigap Part G is available in standard and High-deductible versions from select insurers in some states. Unlike Original Medicare, which is a Federal program, Medigap plans are provided through private insurance companies.
The core benefits provided in Plan G are identical across all insurers and regulated by the government.
However, some insurers may offer additional benefits for an extra premium charge. These benefits can cover the preventative care charges for vision, hearing, and dental you incur during the year. However, they don’t affect the deductible you pay.
Provided you meet the deductible for Plan G, it covers all the associated costs with your medical expenses. That means you don’t end up with outlandish hospital or doctor bills that force you to dip into your retirement savings.
How Does the High-Deductible Plan G Work?
The high-deductible version of Plan G offers members all the same benefits as the standard Plan G.
The difference is that you’ll pay a lower premium and a higher deductible. This option is good for healthy seniors who don’t visit the hospital or doctor much during the year.
With the high-deductible plan, you can save on your monthly premiums. However, you have a higher deductible to meet each year. If you don’t incur many medical expenses during the year, it’s worth it to take the high-deductible option because you won’t spend as much as someone that sees the doctor frequently.
The 2023 deductible for the high-deductible Plan G offering is $2,700. This means that when you incur medical costs,
Medicare pays 80% of the costs, and you pay the other 20% until you meet the $2,700 deductible threshold. After completing the threshold, Plan G activates and takes care of the outstanding balance you owe the healthcare provider.
Like the standard Plan G, the high-deductible version doesn’t cover the Medicare Part B deductible ($226 in 2023).
However, this deductible amount goes towards the larger deductible threshold, meaning you’ll have already met it by the time you reach your $2,700 HDG deductible amount.
What are the Advantages of Medigap High-Deductible Plan G?
The most appealing part of taking the Medigap High-Deductible Plan G policy is its lower premium.
It’s considerably lower than the standard Plan G premium, typically half of the Plan N premium rate, and up to $100 lower than the standard Plan G rates in some states.
Like Standard Plan G policies, HDG policyholders don’t need to file any claims or worry about Medicare processing their claim – the insurer handles everything for you.
After you meet your deductible, the crossover between Medicare and the private insurer ensures everything goes smoothly without you having to make any out-of-pocket payments to healthcare providers.
Here are examples of the savings you can make between the premiums for the high-deductible and standard Plan G policies in various cities.
| City | Price |
|---|---|
| Bradenton, FL | $67.77 |
| San Antonio, TX | $31.82 |
| Charlotte, NC | $30.60 |
| San Francisco, CA | $38.12 |
| Denver, CO | $46.61 |
| Lansing, MI | $34.15 |
| Richmond, VA | $35.82 |
| Harrisburg, PA | $34.47 |
| Topeka, KS | $29.39 |
*Please note that the difference in rates are just averages and not a guarantee of the deductible you’ll pay. Reach out to our team, and we’ll ensure you get an accurate quote for your high-deductible Plan G policy in your state.
How Do Insurers Calculate Plan G Premiums?
Insurance companies have the freedom to set the costs of their Plan G premiums as they see fit. All insurers consider basic factors like gender, age, and tobacco use when setting your premium.
However, insurers can also vary their plan for other factors, such as where you live in the United States.
For instance, one insurer might offer lower premiums for Plan G members in Chicago while charging a higher premium for members in California. Insurers compete for your business, so one insurer might offer a cheaper rate on Plan G premiums in one state than another.
That’s why you need a professional agent looking into the best premiums for leading insurers in your area.
Contact our team, and we’ll help you access Medigap Plan G at the best rate in your state.
Frequently Asked Questions
What is the deductible for Medicare Supplement Plan G?
Medicare Supplement Plan G does not have a deductible. It covers the Part A deductible but does not cover the Part B deductible. However, once you meet the Part B deductible, Plan G covers the rest of your Part B costs.
Is the Medicare Part B deductible included in Plan G coverage?
No, Medicare Part B deductible is not covered by Plan G. Beneficiaries are responsible for paying the Part B deductible amount before Plan G starts covering their medical expenses.
What does the Part A deductible cover in Medicare Supplement Plan G?
Medicare Part A deductible is covered by Plan G and applies to inpatient hospital services. Once the deductible is met, Plan G pays for the remaining hospital costs for up to 365 days.
How does Medicare Supplement Plan G differ from Plan F regarding the deductible?
While Plan F covers both Part A and Part B deductibles, Plan G only covers the Part A deductible. However, Plan G generally has lower premiums than Plan F, making it an attractive option for many beneficiaries.
Can you clarify the 2023 Medicare Part B deductible amount for Plan G beneficiaries?
As of my last update in September 2021, the 2023 Medicare Part B deductible for Plan G beneficiaries is $250. Keep in mind that deductible amounts may change over time, so it’s essential to check for the latest updates.
Is the Plan G deductible the same for all insurance providers?
Yes, the coverage provided by Medicare Supplement Plan G is standardized across different insurance providers. However, the premiums may vary, so it’s crucial to compare plans and prices before choosing one.
Can the Plan G deductible change from year to year?
The Plan G deductible remains the same for a calendar year and may change each January. It’s vital to keep yourself informed about any deductible updates from Medicare.
How does the Plan G deductible compare to Medicare Advantage plans?
Unlike Medicare Supplement plans, Medicare Advantage plans often have their own set of deductibles and cost-sharing structures. Plan G, on the other hand, follows Medicare’s standardized cost-sharing rules.
Is there a cap on out-of-pocket expenses with Medicare Supplement Plan G?
Plan G does not have an out-of-pocket maximum. However, it provides robust coverage for most of the beneficiary’s medical costs once the Part B deductible is met.
Does the Plan G deductible apply to prescription drug costs?
No, the Plan G deductible does not apply to prescription drug costs. Medicare Supplement plans do not cover prescription drugs. Beneficiaries need to enroll in a separate Medicare Part D plan for prescription drug coverage.
Get the Advice You Need on Deductible for Medicare Supplement Plan G
Understanding how Medicare deductibles and benefits work can be confusing and leave you with more questions than before you looked into them.
Call us at 1-888-891-0229. We’re the expert resource you need to help you understand what the Deductible for Medicare Supplement Plan G is.
Or fill out the contact form on this site, and we’ll get someone to call you back when it’s convenient for you.
Updated December 4th, 2022