There are ten Medicare Supplements, but only Plans C, G and F offer comprehensive coverage. While Plan F covers all the Medicare gaps, more and more individuals are choosing Supplement Plan G. That’s because even though it doesn’t cover Part B’s $147 deductible, Plan G typically has lower premiums that will offset any out-of-pocket expenses.
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 $147 deductible. 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 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 $147 of services approved by Medicare||$0||$0||$147|
|All charges within the Medicare-approved amount of $800||$640||$160||$0|
|Excess charges of $200||$0||$200||$0|
Why should I choose Medicare 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. There is somewhat of an added risk with a Medicare Plan G policy that usually means a slightly 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 $30 less than Supplement Plan F’s, you’ll pay $360 less annually. If you have to pay that deductible you’ll still be paying $223 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||$257.28 after paying $147 Part B deductible|
The annual savings after paying Medicare Part B’s deductible is $257.28. This doesn’t apply in all instances, but it is a good example of how Plan G can be the best choice for you.