Medigap Plan GHD, otherwise known as Medigap Plan G High Deductible, is a form of Medicare Supplement Insurance plan.
It’s purposely designed to cover certain out-of-pocket costs that are not covered by Original Medicare (Part A and Part B).
While Plan GHD is similar to the standard Plan G, it entails a high deductible which means that you will need to pay more out-of-pocket expenses before the plan starts to provide coverage. Now, let’s examine how the Medigap Plan GHD actually works.
How Medigap Plan GHD Works
- Eligibility: To be eligible for Medigap Plan GHD, you must be enrolled in both Medicare Part A and Part B. Typically, you become eligible for a Medigap plan once you turn 65 or if you have certain disabilities.
- Enrollment: The best time to enroll in a Medigap Plan GHD is during your Medigap Open Enrollment Period (OEP), which starts the month you turn 65 and lasts for six months.
Meanwhile, you can still apply for Medigap coverage outside the OEP but you may be subject to medical underwriting, and there’s no guarantee of acceptance.
- Coverage: Medigap Plan GHD covers several out-of-pocket costs, including:
- Medicare Part A coinsurance and hospital costs up to an additional 365 days after Medicare benefits are used up
- Medicare Part B coinsurance or copayment
- First three pints of blood used in a medical procedure
- Part A hospice care coinsurance or copayment
- Skilled nursing facility care coinsurance
- Medicare Part A deductible
- Medicare Part B excess charges (the difference between a provider’s charge and Medicare’s approved amount)
- High deductible: Unlike the standard Plan G, Plan GHD features a high deductible. The deductible was once $2,370, and it often changes annually. You must pay this amount in out-of-pocket expenses before the plan begins to provide coverage for the aforementioned benefits.
- Foreign travel emergency coverage: Medigap Plan GHD also provides coverage for foreign travel emergencies, typically up to 80% of the costs, after a $250 deductible. The lifetime limit for this benefit is $50,000.
- Premiums: You’ll pay a monthly premium for Medigap Plan GHD, which can vary based on factors like your age, location, and insurance company. Since Plan GHD has a high deductible, the premiums are generally lower than those for standard Plan G.
- No prescription drug coverage: Medigap plans, including Plan GHD, do not cover prescription drugs. To get prescription drug coverage, you’ll need to enroll in a separate Medicare Part D plan.
- Keep your information updated: It is important to notify your Medigap insurer of any changes to your personal information, such as a change of address or marital status. This helps ensure you receive timely and accurate information about your coverage.
What Are the Benefits of Medigap Plan GHD?
Medicare Plan GHD provides a series of benefits due to its high deductible, including:
- Medigap Plan GHD covers many out-of-pocket costs associated with Original Medicare, such as coinsurance, copayments, deductibles, and excess charges.
- It has lower premiums compared to the standard Plan G. This can be beneficial for individuals who prefer to pay lower premiums and can afford to cover the deductible.
- Plan GHD covers the Medicare Part A coinsurance for hospital stays and provides an additional 365 days of coverage after Medicare benefits are exhausted.
- Plan GHD covers the Medicare Part A deductible, which can be a significant expense for beneficiaries. While it does not cover the Part B deductible, it does cover Part B excess charges.
- Medigap Plan GHD covers Medicare Part B coinsurance and copayments, as well as Part A hospice care coinsurance or copayments, ensuring beneficiaries have comprehensive coverage for various medical services.
- Blood coverage: The plan covers the cost of the first three pints of blood used in a medical procedure, which Original Medicare does not cover.
- Medigap plans, including Plan GHD, are standardized, meaning the benefits for a Plan GHD offered by one insurance company are the same as those offered by another company.
The Bottom Line
Enrolling in a Medigap Plan GHD might be the right choice for you depending on your healthcare needs, financial situation, and preferences. However, choosing the ideal company requires the advice of a Medicare expert.
At MedicareOnVideo, we provide authoritative guidance for individuals willing to enroll in any medicare or supplement plans under the auspices of HealthPlan65.
For more information on Medigap Plan GHD, watch Medicare Video titled “How Does Medigap Plan GHD Actually Work?”
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