Medigap Plan G is the second most popular Medicare Supplement in America. It’s easy to understand, as it’s quite affordable compared to Plan F. In fact, when Plan F stops being sold after 2020, the next most popular Medigap plan will probably be Plan G in my opinion.
What does a Plan G cover?
Plan G is almost identical to Plan F except one thing – on a Medicare Supplement Plan G, you have to pay the annual Part B deductible before your plan pays. The deductible is pretty small – only $185 (as of 2019) – although the deductible tends to increase a few dollars every year to keep pace with inflation. After you pay the deductible, the Plan G covers the rest of your Part B expenses just like a Plan F would. And like Plan F, Plan G still covers Foreign Travel Emergency, Part B excess charges, and the same Part A expenses like the Part A deductible and Skilled Nursing Facility coinsurance.
How much does a Plan G cost?
The cost of a Medicare Supplement Plan G starts around $100 per month for a 65-year-old. A 70-year-old can expect to pay at least $130 per month. An 80-year-old will pay $180 or more per month, and a 90-year-old will pay around $220 per month or more. Seniors who pay annually can get a discount. If you are applying together with a domestic partner or spouse, you can possibly get a Household Discount – ask your broker for more details.
How does Plan G compare to Plan F?
The comparison between Plan G and Plan F is very close to an apples vs. apples comparison – because once the annual Part B deductible of $185 is paid, Plan G acts like a Plan F for the rest of the year. The cost difference for the Plan F to cover that deductible for you is way more than $185, sometimes double or more. Seniors who don’t go to the doctor’s office or hospital often might not want to pay extra just for their plan to automatically pay the Part B deductible.
In addition to the premium savings, Medigap Plan G also has traditionally lower rate increases than a Plan F for two reasons. First, since Medigap Plan F has to cover the Part B deductible and the deductible goes up every year, the insurance company has to raise rates every year to keep pace with the inflation of the Part B deductible.
The second reason Plan G has lower rate increases is because seniors coming off of group health insurance or Medicaid can’t just automatically enroll in a plan G like they can with a Plan F – they must first pass the health questions on the application to get coverage, which correlates to lower claims because the plan typically has healthier people on the books.
