One of the most recent standardized Medicare Supplement plans is Medicare Supplement (Medigap) High Deductible Plan G.
This plan is ideal for Medicare beneficiaries who seek the advantages of Medicare Plan G coverage but are looking to pay less in monthly premiums. To ensure you make an educated decision about your coverage, learn more about Medigap High Deductible Plan G by reading below.
How does Medicare High Deductible Plan G work?
The High Deductible Plan G (HDG) is a recently unveiled Medigap option for Medicare beneficiaries who reached the age of 65 or began claiming Medicare after 1/1/2020.
It has become an attractive choice for many joining Medicare in 2020 and subsequent years, with several companies actively promoting it. Although there are advantages associated with the HDG, it is prudent to be aware of any potential drawbacks before deciding to sign up for the plan.
Plan G High Deductible functions similarly to other Medigap plans. It coordinates with Medicare Part A and B, providing coverage for uncovered medical expenses.
No network restrictions are applicable to HDG or any other Medigap plans; beneficiaries can access any healthcare provider that accepts Medicare.
Deductible Amount
Under High Deductible Plan G, a deductible of $2700 will be applied in the year 2023 (this amount is subject to change annually).
This means that, when obtaining medical services, Medicare will cover 80% of costs while you are responsible for the remaining 20% until your deductible of $2700 is met. In other words, you will be required to pay 20% of the Medicare-approved charges, up to $2700 per calendar year.
Once you have spent $2700 in a calendar year, your HDG plan will function similarly to a standard Plan G.
It will cover what Medicare does not (the 20%). Though HDG, like Plan G, does not cover the Medicare Part B deductible ($226/year in 2023), this amount is accounted for in the larger HDG deductible, which you should have already fulfilled upon reaching the $2700 threshold.
Who Should Enroll in Medicare High Deductible Plan G?
One of the primary benefits of the HDG is its competitive premiums.
Compared to traditional Medigap plans such as standard Plan N, HDG premiums can be as much as 50% lower. Furthermore, premiums can be up to $100/mo cheaper than Plan G rates (although this varies from state to state, and depends on the individual’s age).
This cost savings can be a huge advantage for those considering Medigap options and is great for people who are healthy.
Disadvantages of High Deductible Plan G
It is essential to consider your initial Medigap selection on a long-term basis, as it is not always possible to switch plans after the initial open enrollment period (when you first turn 65 or start on Medicare).
This is because you must always ‘qualify medically’ in order to switch Medigap plans. Therefore, it is important to think about how HDG may fit your needs in the long term, as it may be optimal for those who have few health problems or doctor visits when they turn 65.
Unfortunately, we often hear from individuals who are unable to ‘upgrade’ their Medicare coverage from an HDG or Plan N, or Advantage plan due to existing health conditions or medical treatments.
How to Enroll in High Deductible Plan G
If you determine that High Deductible Plan G is the right option for you, we recommend allowing us to help in comparing rates from multiple insurance companies.
As this plan does not have a large presence in the market, there may be only 3-4 companies offering it in certain states and their premiums may vary widely for the exact same coverage.
To ensure that you are getting the best value for your insurance, take the time to compare rates from multiple sources.
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