Medicare Plan G Costs and Coverage
Key Takeaways
- If you’re enrolled in Original MedicareOriginal Medicare is a fee-for-service health insurance program available to Americans aged 65 and older and some individuals with disabilities. Original Medicare is provided by the federal government and is made up of two parts: Part A (hospital insurance) and Part B (medical insurance). , a Medicare Plan G policy lowers out-of-pocket costs.
- Plan G is a Medicare Supplement Insurance plan, or MedigapMedicare Supplement Insurance (Medigap) is designed to provide coverage that Original Medicare (Parts A and B) does not. Medigap policies are purchased in addition to Original Medicare and have their own monthly premiums you’ll need to pay. plan, that helps fill in the gaps of Original Medicare coverage. This includes the cost of coinsurance, copayments and deductibles.
- Plan G acts as a secondary plan. Your provider bills Original Medicare first, and Plan G second. Some services will be 100% covered.
- While you’ll save when you access services, keep in mind that you’ll have at least two monthly premiums. You will need to pay the Part B monthly premiums and Plan G monthly premiums.
- Medicare Plan G doesn’t cover additional benefits. If you want more coverage, a Medicare AdvantageMedicare Advantage (Medicare Part C) is health insurance for Americans aged 65 and older that blends Medicare benefits with private health insurance. This typically includes a bundle of Original Medicare (Parts A and B) and Medicare Prescription Drug Plan (Part D). plan can cover healthcare services such as dental and vision services, as well as offering prescription medication coverage.
Whether you’re enrolling in Medicare for the first time or you’re reevaluating your current Medicare coverage, you may notice some gaps in coverage. If you have Original Medicare, out-of-pocket costs can add up quickly. This includes copayments, coinsurance, and deductibles. Want to lower these costs? Medicare Plan G can help.
Continue reading to find out how Part G can work alongside Original Medicare.
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What is Medicare Plan G?
The Medicare Supplement Plan G is a Medigap insurance policy. Medigap plans can fill in the gaps in Original Medicare coverage. For example, when you access healthcare, Medicare Part B steps in and covers 80% of the cost. However, you’re left with 20% of the bill. That’s where Medicare Plan G coverage comes in handy.
Medicare Plan G covers 100% of your copayments and coinsurance costs for most Original Medicare services. This means you won’t need to stress about that 20%.
What Is Medigap Insurance?
Medigap, or Medicare supplement plans, are additional policies that can cover some or all of the gaps in Original Medicare. This includes copayments and out-of-pocket costs you pay when accessing care.
There are several Medicare Supplement plans to choose from, including plans named “A” all the way to “N.” In case you’re counting, plans “E”, “H”, “I”, and “J” aren’t available anymore.
Each Medigap plan covers deductibles, copayments and out-of-pocket costs. But each of these plans can cover a different amount. With one supplement plan, you may get 100% coverage for all your out-of-pocket costs, while another plan may offer 75% or 50% coverage.
Is it Medicare Part G or Plan G?
The correct name is “Plan G.”
Plan G is a type of Medigap plan, and all Medigap plans are called plans since they’re not another part of Medicare.
Medigap plans work alongside Medicare to bring you more comprehensive healthcare coverage and must meet requirements set by the federal Medicare program. But these plans are offered by private insurance agencies, unlike Part A or Part B (which are offered by the Medicare program itself).
Medicare Plan G Coverage
Plan G is one of the most comprehensive Medigap plans you’ll find. If you’re enrolled in a Plan G, most of your healthcare services will be completely covered.
Medicare Plan G coverage pays:
- 100% of the Medicare Part A deductible.
- 100% of Medicare Part A coinsurance and copayment costs when accessing hospital care.
- 100% of Medicare Part A hospice care coinsurance and copayments.
- 100% of Medicare Part B coinsurance and copayments for covered services.
- 100% of skilled nursing facility care coinsurance.
- 100% coverage for the first three pints of blood.
- 100% of Medicare Part B excess charges.
- 80% of foreign travel emergency care, up to the plan limits.
What Does Plan G Not Cover?
Medicare Plan G coverage is robust, but it doesn’t cover everything. The most notable thing Plan G doesn’t cover is the Part B deductible.
If you’re enrolled in Original Medicare and you have a Medicare Supplement Plan G, you will need to pay the Part B deductible in full. In 2024, the Part B yearly deductible is $240. After you’ve paid your Plan B deductible, your Medicare Plan G takes over and pays copayments and coinsurance for the rest of the year.
Plan G doesn’t offer any additional benefits not included in Original Medicare. For example, Original Medicare Parts A and B do not cover dental and vision coverage, and Plan G won’t offer this coverage either.
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What is the Difference Between Medicare Supplement Plan F and Plan G?
Plan F and Plan G are the most comprehensive Medigap policies. Both plans will cover most of the gaps in your Medicare coverage, but you can’t purchase Plan F if you first became eligible for Medicare on or after January 1, 2020.
Let’s take a closer look at both plans.
Medicare Supplement Plan G
- Offers 100% coverage for most Original Medicare services.
- Covers 80% of foreign travel emergency care.
- Does not cover the Medicare Part B deductible.
- Has a lower cost.
Medicare Supplement Plan F
- Offers 100% coverage for most Original Medicare services.
- Covers 80% of foreign travel emergency care.
- Covers 100% of the Medicare Part B deductible.
- Has a higher cost.
There are two main differences between Plan F and Plan G. Start by checking the price tag. Plan F usually has higher monthly premiums than Plan G.
The other main difference is the Part B deductible. Plan F covers the deductible, but Plan G does not.
Are you deciding between Plan F and Plan G? After you’ve paid the Part B premium, you’ll get the same benefits from either plan, so it all comes down to the price. Each insurance agency sets their own pricing, so make sure you compare each plan.
Look carefully at the Plan G monthly premium and calculate your yearly expenses. Then add $240 (in 2024) for the Part B yearly deductible. If the total cost for the Plan G premium plus the Part B deductible is lower than the yearly expenses for Plan F, then Plan G may be your best option.
How Much Is the Monthly Premium for Plan G?
Medigap plans like Plan G are offered by private insurance agencies. Unlike Original Medicare, there’s not a federally mandated price tag. Instead, each insurance agency can set their own monthly premiums. Your monthly costs vary depending on your state, your provider, and the policy you choose. On average, most Medicare Plan G premiums will be between $100-$200 per month.
Medigap policies may set prices in three ways:
- Community-rated. Everyone who purchases this plan will pay the same monthly premium. Your monthly premium may go up from time to time based on inflation and other factors.
- Issue-age-rated. Your monthly premium depends on your age when you first enrolled in Plan G. The premiums are usually lower if you buy the policy sooner, and your premiums won’t change as you age. Premiums may increase because of inflation or other factors.
- Attained-age-rated. If your policy is based on attained age, your premiums are determined based on your current age. Your premiums will go up slowly as you age. These plans may be the least expensive when you buy the policy but can become the most expensive over time.
Remember that after your purchase a Plan G policy, your Plan G premium is in addition to your Part B monthly premium. You will need to pay both premiums every month to maintain your plans.
How Does Medicare Plan G Compare to Medicare Advantage
You can’t have Medicare Plan G and a Medicare Advantage plan, so choose wisely.
Medicare Advantage plans are standalone healthcare plans that replace your Original Medicare coverage. A Medicare Advantage plan, offered by private insurance agencies, gives you all the same coverage as Original Medicare Parts A and B. Some Medicare Advantage plans also give you added benefits such as dental, vision and hearing coverage, as well as prescription medication coverage.
Plan G, on the other hand, doesn’t give you any added benefits. Instead, this plan helps you cover out-of-pocket costs when you access covered Medicare services.
If you’re happy with Original Medicare coverage and want to lower your costs, Plan G is a great option. Original Medicare offers good basic healthcare coverage, and a Medigap plan can lower your healthcare expenses.
But if you want access to additional benefits beyond Original Medicare, then a Medicare Advantage plan is the way to go. You can access more covered services, and all Medicare Advantage plans offer the protection of an out-of-pocket maximum. Original Medicare doesn’t feature an out-of-pocket maximum, although two Medigap plans (Plan K and Plan L) do.
Just remember that Medicare Advantage plans have networks of providers, and you’ll need to access in-network care to lower your healthcare costs.
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Sources
- Costs of Medigap policies. Medicare.gov.
This website is operated by GoHealth, LLC., a licensed health insurance company. The website and its contents are for informational and educational purposes; helping people understand Medicare in a simple way. The purpose of this website is the solicitation of insurance. Contact will be made by a licensed insurance agent/producer or insurance company. Medicare Supplement insurance plans are not connected with or endorsed by the U.S. government or the federal Medicare program. Our mission is to help every American get better health insurance and save money.
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