Medicare Plan G is the second most popular Medicare supplement (next to Plan F) with our Baby Boomer clients. Everyone has heard of Plan F, so what is Medicare Supplement Plan G?
Medicare Plan G is a supplement very similar to Plan F. It offers great value for beneficiaries who are willing to pay a small annual deductible. As you can see below, Plan G covers almost everything that F does, except for the Part B deductible:
Medigap Plan G: A Small Deductible = Big Savings
Medicare Plan G, also called Medigap Plan G, is an increasingly popular supplement for several reasons.
First, Plan G covers each of the gaps in Medicare except for the annual Part B deductible. This deductible is only $183 in 2017. If you shop rates at Boomer Benefits, we can often find a supplement Plan G that saves quite a bit in premiums over Plan F, substantially more than $183. You pocket the difference.
Second, it has great coverage. For hospital stays, it covers all your hospital expenses. Most importantly, it pays the $1316 deductible that you would normally owe for any hospital stay.
For outpatient care, Medigap G covers all but the first $183 in expenses, which is the Part B deductible. You will pay that the first time you have outpatient care for that year. After that, Supplement G covers all the remaining expenses. Medicare will pay 80% of your outpatient costs and your supplement will pay the other 20%.
If you are just starting your research into Medicare supplements, you might also read what Medicare covers, before you choose which supplemental coverage is right for you.
If Medicare Supplement G is considerably cheaper than Plan F in your area, then it makes sense to purchase it. You will pay the Part B deductible once per calendar year, but the annual savings in premiums can offset that by several hundred dollars.
Want to know which companies offer the best Medicare Plan G policies. Read our Plan G Reviews here or attend one of our free New to Medicare webinars to learn more about Supplement G or Plan F and Plan N.
Medicare Plan G Scenario:
Frank is a diabetic who has Medicare Supplement Plan G. He sees his primary care doctor once per year, but visits his endocrinologist several times a year to renew his prescriptions. In January, he goes to his first doctor visit for the year. The specialist bills Medicare, which pays 80% share of the bill except for the $183 outpatient deductible, which is billed to Frank.
His Medicare supplement Plan G pays the rest. Frank’s coverage even provides his lancets, test strips and a new glucose meter at no charge to him. Medicare and his supplement work together to pay 100% of the costs for these diabetes supplies.
For the rest of the year, Frank will owe absolutely nothing out of pocket for covered Part A & B services. His Medicare Plan G coverage takes care of the rest. His only copays will be for his medications under his separate Part D prescription drug card. This means he doesn’t have to worry about any more doctor copays. He won’t pay for lab-work or imaging. If he has a surgery, Medicare will cover 80% and his Plan G will cover 20%. Plan G is a really great Medigap plan in this respect.
Why You Should Consider Medicare Supplement Plan G
Lower premiums are a great start, but there is another reason why Medicare Plan G has become a consumer favorite. It is because Plan G is also a long-term rate saver. Medicare supplemental Plan G has a lower rate increase trend from year to year than Plan F. In recent years, we’ve seen Medicare Plan G sometimes have an increase of 3% or less with some carriers. This is considerably lower than the rate increases from year to year on Plan F.
What’s more – if you are switching from a Plan F that has already paid your Part B deductible for the current calendar year, you won’t be subject to that deductible until next year. Hurray for Medicare Supplement G!
Gotta get Plan G? Get in touch with us today: our licensed agents can explain how this policy often keeps premiums lower over the long term. We can also check Plan G rates for over 25 carriers for you to see who offers the lowest rates for Medicare Plan G in your area.
Contact Boomer Benefits now to request a rate analysis for Medicare Supplement G policies in your area. We’d love to show the potentials savings that this supplement can put back into your pocket!
Post- note: Because Medicare terminology uses the words Parts and Plans, you will sometimes hear people refer to Part G, or Medicare Part G. Insurance agents will usually know what you mean when you ask about Part G, but here’s an easy way to remember how to use the right terms. Only Original Medicare itself has Parts and there are only four parts – A, B, C and D. No Part G! All Supplement insurances, on the other hand, are called Plans. So instead of saying Medicare Part G say Plan G, and you’ll be using the correct wording. Hope that helps you!