Medicare Plan G
How does Medicare Plan G work?
In 2020, there were 62.6 million people enrolled in Medicare. 14.5 million of those people are enrolled in a Medicare Supplement plan. Those with the Medicare Supplement insurance were less likely to have issues paying their medical bills than those without a supplement plan. A Medicare Supplement plan is also known as Medigap, a private insurance policy sold by insurance companies that helps pay for additional Medicare costs. This includes gaps not covered by Original Medicare and out-of-pocket expenses.
Most Popular Medicare Supplement
Medicare Supplement Plan G is the most popular Medigap policy with the Baby Boomer generation. Plan G is similar to Medigap Plan F, which is no longer available to those who were not eligible for Medicare before the year 2020. Plan G covers almost everything that Plan F does. Here are the benefits of Medigap Plan G:
• Medicare Part A coinsurance + hospital costs
• Medicare Part B copayment or coinsurance
• First 3 pints of blood
• Part A hospice care copayment or coinsurance
• Skilled nursing facility coinsurance
• Medicare Part A deductible
• Medicare Part B excess charges
• Foreign Travel Emergency
What Services are Covered by Plan G?
Plan G helps to cover the amount of any medical bill that Original Medicare covers. Plan G helps pay for skilled nursing, hospice care, and blood transfusions. In addition, it covers doctor visits, diabetes supplies, cancer treatment, lab work, surgeries, ambulance, and x-rays.
When you receive a Medicare-approved service, Medicare pays first, and Plan G pays the remaining amounts after paying your annual Part B deductible. Plan G also gives you up to $50,000 in emergency benefits when traveling internationally.
Are Medigap Plans Standardized?
There are different types of Medigap plans across the U.S. While the premium rates that beneficiaries pay may be different, the coverage and benefit from these plans are the same in most states. For example, the coverage and benefits in Texas, California, or Idaho may be the same while the premium differs.
When signing up for a Medicare Plan G policy, you can use the open enrollment period to apply for Plan G. This period is referred to as your Medigap Open Enrollment. If you qualify for Medicare due to a disability before turning 65, you’ll have another open enrollment period when you turn 65.
Significant Savings from Plan G
Plan G is so popular among Medicare beneficiaries because of the significant savings. Every price gap in Original Medicare is covered, minus the Part B annual deductible. The Part B deductible in 2022 is $233. This is a massive savings if you pay this compared to the thousands in out-of-pocket gap costs with Original Medicare.
The coverage on Plan G is also spectacular. When you have a hospital stay, all hospital expenses are covered. Plan G saves you money by paying your hospital deductibles, expensive daily copays and provides 365 days in the hospital after Original Medicare has run out.
For outpatient care, a Medigap G plan will make you pay the Part B deductible when you have outpatient care. After this, it will cover the remaining charges moving forward for the rest of the year.
The coverage and security that Plan G offers make many beneficiaries feel at peace with the value they’re getting. Plan G covers more than other supplemental plans, which makes it one of the most popular options to Medicare enrollees.
The Average Cost of Plan G
Plan G premiums can range and do not have a set cost. Depending on your location, tobacco use, gender, and age – the premium may differ. Talking to a Medicare broker can help you determine how much Plan G is in your area and based on your health.
When you have Plan G, your only out-of-pocket expense for Medicare-approved services will be the Part B deductible. There is also another version of Plan G – the High Deductible Plan G, which has a $2,490 deductible for 2022.
Does Plan G Cover Prescription Drugs?
Plan G doesn’t cover prescription drugs; you need a Part D plan for retail prescriptions. However, it will pay your coinsurance on Part B medications. There is a difference between retail prescriptions and Part B medications. Part B medications are clinical drugs used by doctors for injections for autoimmune diseases or chemotherapy.
Conclusion
With so many Americans enrolled in Medicare, it’s no shock that 23% of them are on supplemental policies. Plan G is the one most popular Medicare supplement with the majority of Baby Boomers needs. Talk with a Medicare broker and see if it's a good plan!