Why Is Medigap Plan G Important?

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Since its introduction on the Medicare Supplement Plan market a few years ago, Medigap Plan G has rapidly become one of the most popular supplemental plans available. And, now that Medigap Plan F has been phased out for new enrollees, Plan G is poised to be the plan of choice for millions of Medicare beneficiaries. 

What Does Medigap Plan G Cover?

One of the main reasons Medigap Plan G has become so popular as of late is because it is so comprehensive in its coverage. Plan G covers nearly all of your Medicare-related costs, except for your Part B deductible. This means that with Plan G, the only bill you’re responsible for outside of your monthly premium is the $203 Part B deductible. You can visit your doctor, the ER, or a healthcare specialist, all without having to worry about a surprise bill showing up in the mail. 

Further, the Plan G supplement offers up to $50,000 in foreign travel emergency benefits.

Plan G covers:

  • The Part A deductible
  • Hospice copayments and coinsurance
  • Foreign travel emergency costs
  • Part B excess charges
  • How Much Does Medigap Plan G Cost

Premiums are always going to depend on a range of factors such as your age, gender, whether you smoke or not, and, especially, your location. However, the average premium costs for Medigap Plan G are around $100-$200 a month. A good rule of thumb for costs is that premiums will be higher if you live in a place with a high cost of living. 

Compared to Medigap Plan F – the other high-coverage Medigap Plan – Plan G does have a lower rate increase history. What you save in a year when paying lower monthly premiums for Plan G may well be more than what you save by not paying the Part B deductible if you’re enrolled in Plan F. 

Seniors enjoying time by the sea as they play with their dog and discuss Medigap Plan G coverage.
There are a number of reasons why Medigap Plan G has seen rising enrollment rates over the years.

Why is Medigap Plan G so Popular?

There are a number of reasons why Medigap Plan G has seen rising enrollment rates over the years.

For one, Plan G covers nearly every gap in Medicare except for the annual Part B deductible. As we mentioned earlier, the deductible for Part B is only $203 in 2021. Even if you have been enrolled in Plan F for years but feel like switching plans because you want to save on your monthly premiums while still getting great coverage, you may want to consider enrolling in Plan G. With the help of our licensed experts, witching to a new plan is easy and can save you a bunch of money. 

Beyond saving money every month, another reason people love Plan G is because of its incredible coverage. For hospital stays, Plan G will cover all of your expenses. What’s even better is that Plan G will cover your hospital deductible, which is $1480 in 2021. Plan G will also cover daily copays that you can incur for hospital stays that run longer than 60 days. The plan also provides an additional 365 days in the hospital after Medicare runs out, and it will cover any insurance needs at a skilled nursing facility as well. 

In terms of outpatient care, Plan G will cover all but the first $203 in expenses, i.e. your Medicare Part B deductible. Medicare will cover 80% of your outpatient costs, and if you have Plan G, the supplement will cover the remaining 20%. 

If you’re brand new to Medicare Supplement plans, it may be worthwhile for you to search around and find what Medicare itself covers before you jump into any supplemental coverage plan. While you may like the coverage benefits of Plan G, Plan N may fit your budget and healthcare needs better.

High-Deductible Plan G

Some folks will find that they really want Plan G’s comprehensive monthly coverage, but the Plan G premiums are too expensive. High-deductible Plan G might be the solution for you! This plan offers the exact same coverage and regular Plan G, but in exchange for lower monthly premiums, you’ll have to reach the deductible before getting 100% coverage.  

Are all Medigap Plan G the Same?

Yes. Medicare Supplement Plans are standardized by the federal government. This means that all Medigap Plans – regardless of their letter, the plan provider, or your location – carry the exact same benefits. The only difference between Plans will be monthly premium rates. 

Is There a Plan to Phase out Medigap Plan G?

No. Medigap Plan G is here to stay. While newly enrolled Medicare beneficiaries can no longer join Plan C or Plan F since these two plans have been phased out, Plan G is going to stick around. 

Medicare Supplement Plan G Rate Increase History

There are several different factors that will ultimately impact your plans rate increases. Some important factors include the age you are when enroll in your plan and the pricing method used at the time of enrollment. On average, Medicare Supplement Plan G see’s rate increase on an average of 2% to 6% annually. 

We strongly recommend discussing the rate increase history with your agent for the carrier you choose to enroll with. We also suggest that you research carrier reviews before enrolling. 

Will Medigap Plan G Cover My Prescriptions? 

This Depends. With Plan G, your prescriptions and medications provided in outpatient care will be covered since outpatient care is treated under Medicare Part B. However, the drugs that you receive from your pharmacy and take at home will not be covered, so you will still want to enroll in Medicare Part D.

Enrolling in Medigap Plan G

Medicare can be confusing, but you can simplify the process by using one of our licensed agents. Our agents are Medicare experts, and they will walk you through every part of Medicare, along with all of the Medigap plans, so that you wind up with the best possible care for your budget. Get in touch with us today either over the phone or online to receive rate quotes for Medigap Plan G policies near you.

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Justin Brock

President & CEO of Bobby Brock Insurance