Medigap Plan G
Plan G is rapidly gaining popularity among Medicare beneficiaries as it provides comprehensive benefits and nearly full coverage after Original Medicare. While Plan F provides slightly more coverage, it is no longer available to those who turn 65 after January 1, 2020. Therefore, Plan G is a great alternative for individuals who are looking for extensive coverage.
Medigap Plan G Coverage Details
Medigap Plan G aims to bridge the gaps left by Original Medicare, just like the other supplement plans. Although Plan F offers slightly more coverage, Plan G is an excellent option for Medicare beneficiaries seeking comprehensive benefits. Plan G is almost identical to Plan F, except it does not cover the Part B deductible. Therefore, members of Plan G will only need to pay the plan’s premium and the $226 Part B deductible.
Medigap Plan G Covers:
- Part A coinsurance and up to an additional 365 days of hospital costs after Medicare benefits are exhausted
- Part B coinsurance/copayment
- Blood (3 pints)
- Part A hospice coinsurance/copayment
- Skilled nursing facility care coinsurance
- Part A deductible
- Part B excess charge
- 80% of foreign travel exchange
- No out-of-pocket limit
Medigap Plan G Premiums
Individual premiums for Medigap Plan G will depend on factors such as the state of residence, the insurance carrier, age, gender, tobacco use, and other factors. On average, the monthly premium for Plan G ranges from $100-$200. In states with a higher cost of living, Plan G premiums are generally higher. Compared to Plan F, Plan G has had a slower rate increase history. Although beneficiaries are responsible for paying the Part B deductible, the lower premiums of Plan G may still result in lower overall costs.
Medigap Plan G Deductibles
The only deductible Plan G members will be responsible for is the annual Part B deductible. In 2023, that deductible is $226.
How Can My Plan G Premium Be Reduced?
If the premiums for Plan G are higher than what you want to spend, you may consider enrolling in the high-deductible Plan G. This plan provides the same coverage as the original Plan G, but has a higher deductible that must be met before the coverage begins. The premium for this plan is typically lower than that of the original Plan G.
Medigap Plan G Rate Increases
Medigap plans typically experience annual increases, although the amount of the increase will vary based on the pricing method used by the insurance carrier. Generally, premiums tend to increase with age. Over the past five years, Plan G rate increases have averaged between 2% and 6%. When considering a Medigap plan, it’s important to evaluate the rate increase history of each carrier. A carrier that offers a lower rate initially may end up being more expensive in the long run if they have a history of frequent rate increases. Our agents provide this information free of charge as part of our service to help you make an informed decision.
Plan G is Standardized Coverage
The federal government standardizes all Medigap plans, which means that no matter where an individual purchases a particular plan, it will offer the exact same benefits. This standardization applies across all states and insurance carriers. The only thing that may vary is the premium cost.