How Does This Plan Work?
With High Deductible Plan G, Original Medicare will still pay 80% of your healthcare costs. You’ll pay the other 20% until you hit the $2,370 deductible.
After you meet this out-of-pocket deductible, the plan functions as the regular version of Medigap Plan G, paying the same benefits. The yearly Part B deductible that you’ll be responsible for DOES count toward the total of $2,370.
Whether you’re newly eligible or were previously enrolled in Medicare, you’ll be able to buy a High Deductible Plan G policy.
High Deductible Plan G Benefits
After you reach your yearly deductible, your plan provides the same coverage as regular Plan G:
- Medicare Part A coinsurance and hospital expenses
- Medicare Part B coinsurance
- Blood
- Part A hospice care coinsurance
- Part A deductible
- Part B excess charges
- Skilled nursing facility coinsurance
- Foreign travel emergency care
When to Enroll
If you’re interested in High Deductible Plan G, it’s best to enroll during Medigap Initial Enrollment — a six-month period that begins when you turn 65 and enroll in Medicare Part B. If you don’t sign up during this time, you may not be able to get the Medicare Supplement you want or it might cost more.
How the Companies Charge You
Each Medigap plan charges a monthly premium. The exact amount may vary by area, gender, and tobacco status. Insurance carriers can set monthly premiums for their policies in three ways:
- Community rated — Everybody who buys the plan pays the same monthly amount no matter their age.
- Issue-age rated — Monthly premiums are based on the age when you first buy a plan. Younger buyers will have lower premiums, and the premiums don’t go up as you get older.
- Attained-age rated — Monthly premiums are based on your CURRENT age. So, your premium will increase as you get older.
Is This Plan Right for You?
You may wonder, why would I want a plan with such a high deductible?
Whether this plan is a good option for you depends on your financial circumstances. Certain situations could make this plan a better choice than having Original Medicare alone.
The tradeoff of high deductible health insurance plans is low premiums for you. So, consider this: Would a lower monthly premium suit your budget even being aware that you might be spending an extra $2,370 out of pocket? Or, would you prefer to pay more each month and not have to deal with out-of-pocket expenses throughout the year?
It’s important to do some research and think about these things before you make a decision. If you need guidance, reach out to a broker like Carolina Senior Benefits!