High Deductible Plan G: A Smart Choice?

Family With Senior Parents And Adult Offspring Eating Meal Around Table At Home happy with High Deductible Plan G

High Deductible Plan GPlan G gets a lot of attention. For new Medicare beneficiaries, it offers the most coverage and predictable costs. Enrollment has no limitations based on age, so every beneficiary has access to Plan G. No one can argue that Plan G has many benefits, but most people don’t know that it has a high-deductible version.

This article will discuss how High Deductible Plan G works, how much it costs, and who it might be a good fit for.

What is High Deductible Plan G?

High Deductible Plan G is a Medicare supplement or Medigap plan. Medigap plans are available to all Medicare beneficiaries who are enrolled in Part A and Part B of Original Medicare. They act as a secondary form of insurance, with Original Medicare remaining the primary payor. Medigap plans are designed to pick up the leftover costs that are present after Medicare pays. The amount they pick up depends on which of the policies you have.

Plan G offers some of the most comprehensive benefits. The only plan that offers slightly more is Plan F, but only those who turned 65 before the year 2020 are allowed to enroll in Plan F. Plus, Plan F premiums have increased drastically in recent years, making this plan unaffordable to many.

Plan G covers:

  • Part A deductible
  • Part A coinsurance plus an additional 365 days of hospital costs
  • Part A hospice coinsurance/copayment
  • Skilled nursing facility care coinsurance
  • Blood (3 pints)
  • Part B coinsurance/copayment
  • Part B excess charge
  • 80% of foreign travel emergencies

You’ll find the only thing missing from that coverage is the Part B deductible, which is $233 this year (in 2022). So, if you enroll in Plan G, the Part B deductible is your only 0ut-of-pocket cost.

However, if you enroll in the High Deductible Plan G, you’ll have to meet that deductible before your plan starts paying for any services. Currently, that deductible is $2,490. (It can increase each year.) Your claims will still be sent first to Parts A and B, who will pay their portion. That means that the entire cost of services will not go towards your deductible, which is especially helpful to those who may not need much medical care throughout the year.

After Original Medicare pays, you’ll be responsible for any balance under $2,490 until you have paid that full amount. After that, High Deductible Plan G works just like traditional Plan G.

women with a paper receipt reviewing the cost of High deductible plan G
Premiums average between $40 and $90, depending on your age and where you live.

How much does High Deductible Plan G cost?

Now, here is the beneficial part of choosing the high deductible version of Plan G. Premiums average between $40 and $90, depending on your age and where you live. Compare that to traditional Plan G, which averages between $120 and $200 per month.

Just like other Medicare supplement plans, your premium will vary based on your age, gender, zip code, and tobacco use. Some insurance carriers charge more than others, so it’s worthwhile to look at multiple carriers before you enroll. In addition, Medigap premiums typically increase as you get older, as well as due to things like inflation and the rise of healthcare costs. You should expect your premium to increase once each year. The increase may arrive around your birthday or the plans’ anniversary date, or it may have a state-wide increase at some other time.

Who is a good candidate for High Deductible Plan G?

Not everyone is a good fit for High Deductible Plan G. Individuals who may find it advantageous include:

  • People who have the financial capacity to pay the deductible
  • People who cannot afford the higher premiums of traditional Plan G but are also not eligible to switch to a lower-cost plan (like Medicare Advantage)
  • Healthy individuals who rarely see a doctor and may not even need to pay the deductible
  • Individuals who like to travel and need health insurance that covers foreign travel

There are quite a few instances when a high deductible insurance plan would work well for someone. Plan F offers the same option for those who meet the birthday requirements. Like High Deductible Plan G, High Deductible Plan F enjoys much lower premiums than its traditional counterpart and still has the same deductible ($2,490) as Plan G.

If you’d like to learn more about High Deductible Plan G, contact one of our Medicare experts. We can help you determine if a high deductible plan is a good fit for you or even discuss other options if you are new to Medicare or just want to change your current coverage. There is no cost or obligation to work with us, so call today to schedule your appointment.