Medigap Plan F is the most popular Medigap plan historically. Sadly, plan F is no longer being offered after 2020, so where does that leave us? Plan G to the rescue!
To quickly review, Medigap is supplemental health insurance to cover costs associated with Medicare. For those with Part A and Part B, Medigap plans can cover copayments, deductibles and coinsurance. While not as comprehensive as Medicare Advantage, Medigap plans are great for those that travel or live in two different places during the year.
- I was told to get Plan F…..
- Medigap plan comparison chart
- Cost of Medigap Plan G
- A high deductible option?
Why Plan G is going to take over
Medigap Plan F was the most popular plan for a long time because it offered the most comprehensive coverage. With it being phased out starting in 2021, folks looking to enroll in Medigap will have to look elsewhere. Well, the best place to start is the next letter in the alphabet: G!
Why is Medigap Plan F going away?
Medigap Plan F is going away for people new to Medicare starting in 2021. Those who were eligible for Plan F and enrolled in Plan F prior to 2021 will still be able to enjoy their plan. If you are enrolled in Plan F, you can even switch carriers from one year to the next without losing eligibility.
What about Medicare Advantage?
Medicare advantage is totally different from Medigap, or supplemental Medicare. If you’re interested in learning more about Medicare Advantage, check out my book!
Benefits of Medigap Plan G in 2021
|Part A coinsurance and Hospital costs||Yes||Yes||Yes||Yes||Yes||Yes||Yes||Yes||Yes||Yes|
|Part B coinsurance or copayment||Yes||Yes||Yes||Yes||Yes||Yes||50%||75%||Yes||Yes|
|Part A Hospice Care Coinsurance or Copayment||Yes||Yes||Yes||Yes||Yes||Yes||50%||75%||Yes||Yes|
|Skilled Nursing Facility Care Coinsurance||No||No||Yes||Yes||Yes||Yes||50%||75%||Yes||Yes|
|Part A deductible||No||Yes||Yes||Yes||Yes||Yes||50%||75%||50%||Yes|
|Part B Deductible||No||No||Yes||No||Yes||No||No||No||No||No|
|Part B ExcessCharge||No||No||No||No||Yes||Yes||No||No||No||No|
|Foreign travel exchange||No||No||80%||80%||80%||80%||No||No||80%||80%|
As you can see from the table above, Plan G offers coverage for Part A coinsurance and hospital costs. This is great for the deductible and copayments associated with hospital stays.
Other benefits of Medigap Plan G
Part B coinsurance and copayments are also included, which means most doctors office visits will be little to no cost for you. This also offers coverage for your Part A deductible and even 80% of health costs if traveling overseas.
In fact, Plan G looks almost identical to Plan F with the exception of Plan B deductible coverage. Although it may seem like this is a huge downside to Plan G plans, the Plan B deductible needs to be re-examined.
Cost Comparison for Medigap Plan G
The part B deductible in 2021 is $203. While $203 certainly isn’t pocket change, it is an incredibly low deductible for any health insurance plan. I don’t think this is something that should turn you away from Plan G, as it is still the most comprehensive plan offered. In fact, out of pocket costs related to Plan G can be even cheaper than Plan F.
The premiums for Plan G are generally cheaper than Plan F, so although the deductible is required for Medicare Part B, the overall expense is actually cheaper. Expect to pay around $30 per month less for Plan G than Plan F, which should easily cover that $203 deductible of Part B.
Medigap Plan G’s High Deductible Medigap Option
What is beautiful about Plan G is that it has the option for a high-deductible plan. With this plan, you can expect much lower premiums, with a higher deductible paid out-of-pocket. Once this deductible is met, the plan kicks in and covers its normal expenses. While you would still be on the hook for the part B deductible, the rest would be covered at this point and you would have saved a ton of money on premium costs.
The best match for a high deductible plan is those that don’t think they will incur a lot of health expenses, but also don’t want to pay too much if something does happen. It is a great way to hedge your bets knowing that if you become sick, you have a known out of pocket cost followed by great coverage.
This option is only available for those that become eligible after 2020, but most of those folks are choosing Plan G anyways.
A reminder about Medicare
Before picking any Medigap plan, make sure you know what traditional Medicare Parts A and B cover. This will help you when trying to figure out how much coverage you will need and ultimately guide the type of Medigap plan that you purchase.