What is the Cost of Medicare Plan G?

 

People who enroll in Medicare (federal government insurance) are often shocked to discover Medicare is not free. On top of Medicare not being free, the health insurance also does not cover all healthcare services at 100%. There are many gaps in Medicare, such as deductibles, copays, and excess charges. Due to these out-of-pocket expenses, private insurance companies offer Medigap plans, also known as a Medicare Supplement, to help with cost-sharing. One of the most popular Medigap plans is Medicare Plan G; but, this type of plan still comes with a cost! If you are a beneficiary and are now thinking, “What is the cost of Medicare Plan G?”, Keep reading this article!

How does Medicare Plan G work?

Medicare Supplement Plan G works alongside Original Medicare Part A and Part B. In other words, Plan G is secondary coverage to Medicare. If Medicare approves a service and pays out, then Medicare Plan G will help pick up the remaining coverage gaps that Original Medicare did not cover. Here’s how the billing process works:

  • You visit the doctor
  • The doctor bills Original Medicare
  • Original Medicare pays its share of Medicare-approved services
  • Original Medicare sends the remaining bill to your Medigap Plan G
  • Plan G picks up the remaining Medicare-approved costs after the Part B deductible is met

Since Medicare does not have network restrictions, you can visit any doctor in the United States that accepts Medicare and use Plan G. The doctor must accept Plan G, no matter the insurance company you purchased the plan through. On top of no network restrictions, you also do not have to obtain a referral to visit a specialist if the specialist does not require it.

What are the benefits of Plan G?

One of the reasons many Medicare enrollees favor Plan G is because it gives you predictable healthcare costs for the year! Medigap policy Plan G covers:

  • First 3 pints of blood
  • Part A deductible
  • Part A coinsurance and hospital stay costs
  • Part A hospice care coinsurance/copayment
  • Skilled nursing facility coinsurance
  • Medicare Part B outpatient care coinsurance/copayment
  • Medicare Part B excess charges
  • $50,000 foreign travel emergency benefit with a $250 deductible

As you can see, Plan G covers most of the cost-sharing amounts you are initially responsible for. The only cost-sharing amount you would be accountable for Medicare-approved services with Plan G is the Part B deductible, which is $233 in 2022. After you have paid the Part B deductible, Medicare Plan G should cover the rest of your Medicare-approved services for the rest of the year.

Is Medicare Plan G the same in every state?

Some states have special Medigap policies. For example, Massachusetts, Minnesota, and Wisconsin do not offer the same Medigap plans as the majority of the U.S. states. If you live in any of the states that offer unique plans, you will want to contact a Medicare Supplement insurance company to know what your options are.

The cost of Medicare Plan G

There is no set list of premium rates for Medicare Plan G across all health insurance companies, as every insurance company has a different pricing method. The cost of Medicare Plan G depends upon multiple factors, such as your gender, age, tobacco use, zip code, insurance provider, and more. Therefore, premiums vary from person to person. You may be able to find a Plan G as low as $60 and as high as $100+. You would need to contact an insurance carrier or a Medicare broker for an accurate rate for Medicare Plan G.

Summary

Thousands of Medicare beneficiaries favor Medicare Plan G due to the predictable healthcare costs for the year and low out-of-pocket costs. If Plan G sounds like the coverage for you, reach out to a creditable Medicare brokerage for more information and quotes among multiple carriers.

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