Now that you’re approaching retirement, you’ve likely started considering your healthcare options. While Medicare insurance covers a wide variety of health expenses, you may find that your health needs are becoming more nuanced as you get older.
While Medicare is considered a comprehensive plan, it’s known for having some coverage gaps. These gaps can leave you with unexpected medical bills for copayments or medications that aren’t covered. When you’re on a fixed income, a surprise bill can significantly impact your retirement budget.
That’s why many people choose to get Medicare supplemental coverage like Medicare Plan G. No one wants to get stuck with medical expenses that aren’t covered by their insurance plan. The right Medigap coverage can ensure that you’re covered when Medicare falls short.
For many people, Medicare Plan G is an affordable option to get the coverage you need. If you’re wondering which supplemental insurance plan is right for you, read on to learn about the benefits of Medicare Plan G coverage.
What Is Medicare Plan G?
Medicare Plan G is a supplemental insurance policy that offers additional coverage beyond your Original Part A and Part B Medicare policy. Some people choose to get supplemental policies instead of a Medicare Advantage Plan (otherwise known as Medicare Part C).
Gap coverage like Medicare Plan G can over more flexible benefits than choosing a Medicare Advantage Plan. You can also avoid unexpected out-of-pocket costs with a Medicare Plan G policy.
What Does Medicare Plan G Cover?
This supplemental insurance plan is one of the most comprehensive Medigap options available. After all, approximately 13% of Original Medicare policyholders choose to supplement their coverage with Medicare Plan G, making it the second most popular Medigap choice.
Medicare Plan G covers almost everything that Plan F provides, except for the Plan B deductible. With Plan G, you can expect to pay the yearly Part B deductible, which is $198 for 2020. This will be your primary and possibly only out-of-pocket expense.
Otherwise, Medicare Plan G covers all other costs, including:
- Your Part A deductible
- Copayment and coinsurance payments for Medicare Part A and Part B, including inpatient hospital care
- Excess charges from Medicare Part B
- First three pints of blood used in a medical procedure
- Nursing facility care
One of the added benefits of Medicare Plan G is that it covers 80% of foreign travel emergency expenses up to plan limits. If you’re planning on having an active retirement and exploring the world, this plan may be a great fit for you.
Are My Prescriptions Covered by Plan G?
A Medicare Plan G policy covers any prescription drugs you receive at the hospital or doctor’s office. However, a Plan G policy will not cover the prescriptions you receive from the pharmacy.
Many Original Medicare users choose to enroll in Medicare Part D, which assists with prescription drug costs. Unlike the fixed Medicare room and board” while you are hospitalized as an inpatient. This means that Medicare Part A and B plans, Part D has multiple plans to choose from based on your prescription needs. Choosing the right plan is important to avoid a coverage gap.
How Much Are Premiums for Plan G?
Since health insurance companies offer Medicare Plan G policies instead of the government, there are variable premium costs for Plan G coverage. However, one of the aspects that sets Plan G apart from the popular Plan F is a lower monthly premium. Now that Plan F is no longer available to new beneficiaries, Plan G offers the best coverage for your money.
Keep in mind that your Plan G premium is in addition to your monthly Part B premium and your Part D prescription drug premium, if applicable. These expenses are worth considering before choosing a supplemental plan. It’s a smart choice to shop around for affordable Plan G premiums.
You may also be able to save money on your Plan G premium with a high deductible plan.
What Is My Deductible for Plan G?
When you enroll in a Medicare Plan G policy, you may have the option between a regular deductible and a high deductible plan. High deductible plans are only available in certain states. The deductible you choose can impact the cost of your monthly premium.
For 2020, the deductible for the High Deductible Plan G option is $2,340. For 2021, this amount will increase to $2,370. A high deductible plan may be a good option to help you save on premium costs, especially if you are in good health.
Otherwise, the only deductible for Medicare Plan G is the $198 Part B deductible
What Is the Difference Between Plan N and Plan G?
Plan N is becoming a more popular option as seniors search for lower premiums. If you are in good health and don’t mind some cost-sharing to offset your low monthly payment, Plan N may be right for you.
Unlike Plan G, you can incur Part B excess costs under Plan N. You are also responsible for copays of $20 for doctor visits and $50 for hospital visits if you aren’t admitted. Like Plan G, you will also need to cover the $198 Part B deductible.
Before you choose between Plan N and Plan G, it’s important to understand what changing Medigap plans involves in your state. Enrolling in a better plan after your initial Medicare enrollment period can cause a dramatic jump in premiums.
Plus, you may be subject to traditional medical underwriting, which means an insurance company could refuse to cover you based on your health if you try to switch plans.
That’s why it’s crucial to do your research and think of the future when picking a Medigap plan. While you may be healthy now, you will not have the option to choose a plan with better benefits in the future. While you can decrease benefits at any time, you cannot increase them after your initial enrollment.
That’s part of why many people opt for a High Deductible Plan G earlier in retirement and switch to a regular Plan G policy later on.
Why Medicare Plan G Is Right for You?
Finding the best Medigap coverage takes time and research. However, if you’re looking for the best of the best in 2020 and beyond, Medicare Plan G provides affordable premiums and minimal out-of-pocket costs.
If you’re still on the fence, we’re here to help! We’re ready to answer any questions you have about Medicare Supplemental Plans, contact us today.