If you have been doing any research into the Medicare Supplement plans available across the country, you have likely heard about Medigap Plan G, as it is the highest coverage Medigap plan available to anyone who turned 65 on January 1st, 2020 or later. What many people don’t know, however, is there is another version of Plan G with a much lower premium that makes a lot of sense in many states. This plan is known as Plan G High Deductible.
As the name states, this plan offers the same benefits of a standard Plan G, but also includes a high deductible. Essentially with this plan, you are required to meet the deductible with out-of-pocket costs, and once the deductible is met, your Plan GHD turns into a standard Plan G.
For the majority of people coming off of either an employer-sponsored health plan, or an individual plan, you will find that this deductible is actually not as high as it sounds! In 2021, Plan GHD carries an annual deductible of $2,370. It is important to understand exactly how this deductible works, and when it comes into play
What is a Medicare Supplement Plan?
Original Medicare carries out-of-pocket expenses such as deductibles, coinsurances, copayments, and excess charges. Some of these expenses, such as copayments and coinsurance, do not have a maximum out-of-pocket amount under Original Medicare.
Luckily, Medicare beneficiaries are given the option to enroll in supplemental coverage in order to not only cap these costs, but add some additional benefits to Original Medicare, such as foreign travel emergency coverage.
What is Medicare Supplement Plan GHD?
One of the Medicare Supplement plan options available to Medicare beneficiaries is Medigap Plan G High Deductible. This plan offers all of the benefits of a standard Medigap Plan G, but with a much lower premium and a high deductible.
With a Plan GHD, you are first enrolled in Original Medicare Part A and Medicare Part B. Original Medicare coverage out-of-pocket includes:
- Part A Deductible- $1,484 per benefit period
- Part B Deductible- $203 annually
- 20% Medicare Part B coinsurance
- Medicare Part B copayments
- Medicare Part B excess charges
The standard Medicare Supplement Plan G covers the majority of Original Medicare out-of-pocket expenses, except for the Part B annual deductible. Medicare beneficiaries who turned 65 after January 1st, 2020 are not eligible for a Medicare Supplement plan that provides coverage for the Part B deductible.
A Medicare Supplement Plan G High Deductible covers all of the same benefits of Plan G, with one catch. Prior to Plan GHD coverage picking up any expenses, you must first meet the high deductible. In 2021, the Plan GHD deductible is $2,370 annually. Essentially, prior to your Plan GHD transforming into a standard Plan G, you must meet your annual $2,370 deductible.
Before you meet the high deductible, any costs you incur under Original Medicare will go toward the high deductible. This includes the Part A deductible and the Medicare Part B 20% coinsurance.
What Does Plan GHD Cost?
As mentioned previously, Plan GHD is often a much lower premium that a standard Plan G premium. This drastic difference in premium, of course, is a direct result of the high deductible. Often times, however, you may not come close to hitting the deductible in a year, unless you have a catastrophic year. For this reason, Plan GHD is often a very cost-efficient plan to save money in premium throughout the year, which can be set aside for the $2,370 deductible, if needed.
What Does Plan GHD Not Cover?
Just like all other Medicare Supplement plans, Plan GHD will not cover any services or expenses not covered by Original Medicare, whether you have paid the deductible or not. A Medicare Supplement is always going to follow Original Medicare’s lead on whether services qualify as either medically-necessary or preventive.
Essentially, Plan GHD does not cover things such as routine dental, vision, and hearing, or prescription drugs. Luckily, there are separate stand-alone plans that offer coverage for these services.
Give us a call at 877-88KEITH (53484), an experience agent will be able to review these additional plan options with you.
How To Enroll in Plan GHD
Now that you have researched all of the Medicare Supplement plan options available, you have decided that Plan GHD is the right choice for you. Luckily, with help from the right agent, enrolling into the plan is the easiest part! You just need to make sure you follow the right steps!
Enroll in Original Medicare
Before you can enroll into a Medicare Supplement plan, you must first set-up your enrollment into Original Medicare Parts A and B. Original Medicare can either begin when you turn 65, or when you are leaving employer coverage past age 65. Medicare eligible beneficiaries must enroll in Original Medicare themselves, as it is completed through Social Security. We at Medicare On Video have created a quick link to take you to exactly where you need to apply on the Social Security website- www.StartPartB.com
Enroll in Plan GHD
Once you have determined when your Original Medicare is going to begin, you are eligible to submit an application for a Medicare Supplement plan. You can apply for a Medigap plan up to 6 months prior to your Medicare Part B effective date. It is imperative to have your Medicare Supplement begin the same month as Medicare Part B to avoid any gaps in coverage. Give us a call at 877-88KEITH (53484) for a free Medicare Supplement GHD quote and we will walk you through all of your options available, as well as help you set up your enrollment!