High Deductible Plan G stepped in and filled the void left by the new MACRA law that went into effect. Plan F, Plan C, and High Deductible Plan F were discontinued, and the HDG entered the spotlight.
The high deductible plans have always been a popular option with low premiums and a relatively low cap on what you can potentially spend. This has caused more and more people to gravitate to it over the years.
How Medigap High Deductible Plan G Works
This plan covers all of the same benefits as Plan G. The difference is you have an annual plan deductible that must be met before the plan covers 100%.
Plan G kicks in and covers your portion of Medicare cost after Medicare’s Part B deductible is met. The HDG does the same. Instead of the deductible being the Part B annual deductible, it has a plan deductible.
Think of it like this. When on the HDG, you’ll pay your Medicare cost-sharing. Once you’ve met the plan’s deductible, your coverage kicks in 100%. The plan covers your portion of Medicare cost-sharing for the remainder of the year.
All costs you pay for your part A and B cost-sharing go towards the plan deductible. These are items such as the Part A and B deductibles, the 20% coinsurance, excess charges, and more.
How Much Does the High Deductible G Cost?
The premium usually ranges somewhere between $40 to about $90, depending on the state and your age.
How Much is the Plan Deductible in 2022?
The deductible for the HDG is $2,490. Because of this deductible, many beneficiaries do not meet it on an annual basis. This is one of the reasons the premiums are low, and usually have fewer increases than other plan options.
Keep in mind, if you have medical issues and go to the doctor often, the standard Plan G may be better suited for your needs.
What is the difference between the High Deductible Plan G and the High Deductible Plan F?
The plans are the same. The only difference is that like Plan G it does not cover the Part B deductible. Since both plans have the same annual deductible, the Part B deductible will go towards the plan deductible anyway.
So, is one better than the other?
Well, does one have a lower premium? If so that would be better since they’re basically the same plan. Take the one with the lower premium.
Since the High Deductible Plan F is discontinued for new Medicare beneficiaries, it may or may not be available to you. It depends on when you first became eligible for Medicare.
This Plan is Perfect for Those Who
- Have a rainy day fund to cover the deductible
- Do not go to the doctor often
- Prefer to pay less monthly on insurance premiums
- Want to stay with Original Medicare to take advantage of fewer restrictions
- Want to continue to see any doctor or hospital they choose nationwide
Guaranteed Issue Rights with High Deductible Plan G
Only certain plans allow you to use guaranteed issue rights to enroll. If you were eligible for Medicare before 2020, and have guaranteed issue rights, then you can only use them to enroll in HDF, not HDG. And vice versa.
I had an HSA when I was working, can this be set up similarly?
Many people who choose to go with high deductible plans enjoy the freedoms of an HSA plan when they were working.
Some carriers, such as United American, offer an annuity that you can deposit a minimum of $50 a month into in addition to your premium. This is optional and not a requirement.
When you go to your doctor, your costs are paid by the annuity until you reach the deductible. At that point, just like an HSA, the remainder of your costs are covered by the plan.
This is the preferred option for most financially savvy beneficiaries. The money in the annuity accrues interest and it’s your money, it does not belong to the insurance company.
How to Compare Rates for High Deductible Plan G
Well, that’s the easy part. Simply give us a call, or fill out the online request form. We’ll contact and assist you along the way with any additional questions that may come up.
In addition, we can help with a quick and easy analysis to help you decide if this is truly the correct path for you. We’re here to help with any aspects of your Medicare journey.