Medigap Plan G
Medigap Plan G has been the best kept secret for years because it is exactly the same as the “Cadillac” Plan F in every way except that it does not pay for the Medicare Part B one-time annual deductible, and it will also cost you less in the long run.
Here’s what you get when you sign up for a Medigap Plan G:
- Complete coverage of Medicare Part A deductible
- Up to 365 days of complete hospital coverage
- Medigap Plan G covers the remaining Part B costs (20%) after you pay the deductible ($183 in 2018).
- Medigap Plan G covers excess charges, which is the 15% a provider is allowed to charge over Medicare approved cost.
- You can go to any hospital, doctor, provider in the United States as long as they accept Medicare.
- Medigap Plan G also has a lifetime foreign travel benefit of $50,000.
Simply stated, Medigap Plan G pays for all expenses except your one-time annual Medicare Part B deductible of $183 (2020)
Medigap Plan F vs. Plan G
When we talk with clients about Medicare Supplement Plans, we usually start out with reviewing the most comprehensive plans - Plan F and Plan G.
We start with Plan F and work our way down in coverage level.
Comparing Plan F and Plan G is very simple, because the plans are exactly the same in every way except two:
- Plan F pays for the one-time annual Medicare Part B deductible, which is $183 in 2018, and Plan G does not pay the Medicare Part B deductible.
- Plan F is more expensive than Plan G, typically by as much as $300 to $500 per year.
Consider the following example:
John is enrolled in Plan F
Jerry is enrolled in Plan G
John pays $190 per month in monthly premium or $2,280 per year
Jerry pays $145 per month in monthly premium or $1,740 per year
John has no out of pocket expenses, no deductibles to meet
Jerry pays the one-time annual Part B deductible of $183 and has no other expenses after
John’s total cost for the year is $2,280
Jerry’s total cost for the year is $1,923
Jerry pays $357 less than John annually.
As you can see, the cost savings in annual premium is bigger than the Part B deductible and therefore a better value for our clients.
So, if you’re like most people when it comes to choosing a Medicare Supplement, you may feel like your “spinning-your-wheels” just trying to figure it all out.
If so, you’re not alone . . .
Fortunately, the Medicare insurance specialists at New Jersey Medicare Plan can help - just give us a call at 1 (844) 280-0785 and we’ll do the heavy lifting for you!
|Medicare Supplement Insurance Plans (Medigap)|
|Part A coinsurance and
hospital costs (up to an
additiona 365 days after
Medicare benefits are used)
|Part B coinsurance or
|Blood (first 3 pints)||100%||100%||100%||100%||100%||100%||50%||75%||100%||100%|
|Part A hospice care
coinsurance or copayment
|Skilled nursing facility care
|Part A deductible||100%||100%||100%||100%||100%||50%||75%||50%||100%|
|Part B deductible||100%||100%|
|Part B excess charges||100%||100%|
|Foreign travel emergency
(up to plan limits)
* Plan F is also offered as a high-
dedutible plan by some issuers in
some states. If you choose this
option, this means you must pay for
Medicare-covered costs (coinsurance,
copayments, deductibles) up to the
deductible amount of $2340 in 2020
before your policy pays anything. Plan C and plan F are only available to those who are not new to Medicare.
** Plan N pays 100% of the Part B coinsurance, except for a copayment of up to $20 for some office visits and up to a $50 copayment for emergency room visits that don't result in an inpatient admission.
*** For Plans K and L, after you meet your out-of-pocket yearly limits and your yearly Part B deductible ($198 for 2020), the Medigap plan pays 100% of covered services for the rest of the calendar year.