Medicare Supplement, also known as Medigap, offers additional coverage to fill gaps in Original Medicare. High Deductible Plan G is one of the latest standardized Medigap plans that provides similar benefits to standard Plan G, but with lower monthly premiums. This plan is an excellent choice for Medicare beneficiaries who want to keep their costs down while still receiving robust coverage. By choosing High Deductible Plan G, beneficiaries can access coverage for a variety of healthcare expenses while paying a higher deductible. This plan may be particularly suitable for individuals who are in good health and do not require frequent medical attention. Understanding the details of High Deductible Plan G can help you make an informed decision about your coverage and ensure that you have the right plan to meet your healthcare needs.
High Deductible Plan G Key Takeaways
Similar to other Medigap plans, the High Deductible Plan G is designed to work in conjunction with regular Medicare Part A and B to fill in any gaps. With no networks to worry about, you are free to use the plan at any doctor or hospital that accepts Medicare.
The plan comes with an annual deductible of $2,700 for 2023 (which changes yearly). This means that after receiving medical services, you’ll pay 20% of the Medicare-approved charges until you reach the $2,700 deductible. Once you’ve paid out $2,370 within a calendar year, the HDG plan will function the same as a standard Plan G and pay for the remaining 20% that Medicare does not cover. Note that the HDG plan does not cover the Medicare Part B deductible of $226 per year in 2023, but this amount counts towards the larger HDG deductible, which you’ll have already met when you reach the $2,700 deductible.
Remember that the deductible for the HDG plan resets each calendar year, meaning you’ll have to meet it again annually. Like any other Medigap plan, the HDG is “guaranteed renewable,” meaning that it can only be canceled due to non-payment of premiums. It doesn’t require yearly renewal nor has an annual renewal period.
Once you have fulfilled the costly deductible requirement, your High Deductible Plan G will provide coverage for a wide range of expenses, including but not limited to: the Medicare Part A deductible, coinsurance and hospital expenses, Medicare Part B coinsurance, co-payments, and excess charges, as well as preventative care Part B coinsurance, skilled nursing facility care coinsurance, and foreign travel emergencies.
Advantages and Disadvantages of Plan G and High Deductible Plan G
There are twelve Medigap plans available to Medicare beneficiaries, each with its own set of advantages and disadvantages to cater to individual needs. One of these options is the Medicare Supplement High Deductible Plan G, which also has its own set of benefits and drawbacks to consider.
Advantages:
Medigap High Deductible Plan G offers extensive benefits similar to the standard Plan G. However, beneficiaries can enroll with a lower monthly premium because it has a higher deductible. It is an excellent alternative for those who do not qualify for Plan F but require comparable benefits, except for coverage of the Medicare Part B deductible. It is a highly recommended choice for individuals who became eligible for Medicare on or after January 1, 2020.
Disadvantages:
High Deductible Plan G may seem like an attractive option due to its lower monthly premium, but there are important considerations to keep in mind before choosing this plan. Firstly, the plan does not cover any costs until you have met the initial HDG deductible. This means you are responsible for all out-of-pocket expenses that Medicare does not cover, including the 20% coinsurance.
Secondly, it’s important to note that you must always qualify medically if you want to switch from one Medigap plan to another after your initial enrollment period. While High Deductible Plan G may be a good fit for someone who has minimal health issues or doctor visits, it’s essential to think about your initial Medigap choice on a long-term basis since there is no guarantee that you can switch plans in the future. Many individuals are unable to upgrade their Medicare coverage from an HDF or Plan N or Advantage plan due to a health condition or ongoing medical treatment.
This is not to suggest that High Deductible Plan G is not a viable option for some individuals. It is. However, it is critical to consider the future implications of selecting this plan and be comfortable with it on a long-term basis.
Medigap High Deductible Plan G is best suited for those who:
- Prefer lower monthly premiums and are comfortable with higher out-of-pocket expenses.
- Have infrequent doctor visits or hospitalizations.
- reside in states that permit excess charges. Enjoy traveling outside the United States.
Is High Deductible Plan G the same as High Deductible Plan F?
Plans may be considered the same because of the one specific reason that is discussed below.
The High Deductible options of Medicare Supplements G and F have a similar distinction as compared to the non-High Deductible versions of Plan G and Plan F. The only difference is that the non-High Deductible versions also cover the Medicare Part B deductible. However, due to the fact that the payment made towards the Medicare Part B deductible is applicable to the high deductible in both plans, they are essentially indistinguishable. This is closely applicable to the relationshiop between Plan G and Plan N.
Choosing between the two plans will depend on your specific situation. When it comes to choosing a Medicare Supplement plan, it’s important to consider both the benefits and the costs of the plan. By doing so, you can potentially save money while still receiving the necessary coverage. Note that new Medicare beneficiaries can no longer enroll in either version of Medicare Supplement Plan F.
When selecting between High Deductible Plan G and High Deductible Plan F, it’s essential to consider your financial needs and health situation. If you have fewer medical needs and can afford to pay a higher deductible, High Deductible Plan G may be the better option due to its lower premiums. However, if you require more frequent medical care, High Deductible Plan F may be the better choice since it covers the Medicare Part B deductible.
It’s crucial to evaluate your individual circumstances and consult with a Medicare professional to determine which plan is best for you. Keep in mind that once you’ve selected a plan, making timely premium payments is essential to avoid cancellation due to non-payment.
If you have any additional questions bout Medicare supplement insurance and available plan options in your area contact our insurance company. Temmen Insurance has experienced Medicare agents who can properly advise you about good plan choices. Call us or text us today, we are ready to consult you!