- Medicare Supplement Plan G provides the best value of all Medigap plans.
- There are ten Medicare Supplements, but only Plans G, F and C offer comprehensive coverage.
- Plans C and F have been discontinued. Only seniors born before 1955 can sign up for these plans.
- More and more individuals are choosing Supplement Plan G. This is for eligibility reasons, but also because of the better price.
- Even though Plan G doesn’t cover Part B’s $203 deductible, Medigap Plan G typically has much lower premiums than Plan F — more than $200 lower per year.
- This means that Medigap Plan G is the best Medicare Supplement plan for most seniors.
Extended Medicare Coverage
Medigap Plan G is popular because, like Plan F, it sets a fixed amount for out-of-pocket expenses. The only gap in Medicare coverage not filled by Plan G is Part B’s deductible ($203 in 2020). Once that’s paid, your only health services expense will be monthly insurance premiums. You won’t be surprised if you have to go to the hospital or doctor’s office. Your charges will always be processed through Medicare. Anything left over will automatically forward to your Medicare Supplemental Insurance
Other gaps in Medicare that are covered by Plan G include:
- Medicare Part A Coinsurance
- Medicare Part A Deductible
- Medicare Part B Coinsurance
- Medicare Part B Excess Charges
- Hospice Care Coinsurance or Copayment
- Skilled Nursing Facility Care Coinsurance
- Charges for First Three Pints of Blood
- Foreign Travel Emergencies
Plan G also offers comprehensive coverage similar to Plan F. Having problems understanding Part B’s deductible? Here’s an example of someone who had a $1,000 outpatient procedure. Medicare only approved the procedure to be $800 and they had a Medicare Plan G Policy:
|Service||Medicare Payment||Plan G Payment||Your Payment|
|First $203 of services approved by Medicare||$0||$0||$203|
|All charges within the Medicare-approved amount of $800||$640||$160||$0|
|Excess charges of $200||$0||$200||$0|
Why should I choose Medigap Plan G over Plan F?
While individuals only have to pay Medicare Part B’s deductible with Supplement Plan G, many opt for Medicare Supplement Plan F since that deductible is covered. So why should you choose Medigap Plan G over F?
The bottom line always comes down to price.
Now that Plan F has been discontinued premiums have gone up. Medicare Plan G policy has a significantly lower premium. The ultimate decision to go with Medicare Supplement Plan G depends on whether your monthly savings will exceed the deductible.
If your Medicare Plan G monthly premiums are $20 less than Supplement Plan F’s, you’ll pay $240 less annually. If you have to pay that deductible you’ll still be paying $40 less each year with Medicare Plan G. Plan F would be a better choice if you were only saving $10 each month.
With regard to coverage and price, Medicare Supplement Plan F is the only plan available that is competitive with Medicare Plan G.
The chart below will help you envision the potential savings:
|Plan F||Plan G||You Save|
|Mutual of Omaha Medicare Supplements (Annual cost of Premiums)||$1,825.32||$1,421.04||$201.28|
The annual savings after paying Medicare Part B’s deductible is $201.28. This doesn’t apply in all instances, but it is a good example of how Plan G can be the best choice for you.