Our goal is always to find you the best value in Medicare coverage. This year that’s more important than ever with the big increases to Medicare premiums and the state of the economy.
Today, we’re talking about one particular Medicare Supplement plan, High Deductible Medicare Supplement Plan G.
Medicare Supplements are also called Medigap plans, so just know that if you see either term, they mean the same thing.
High deductible plans offer a much lower monthly premium cost than more comprehensive Medicare Supplements because they put more financial out-of-pocket risk on you for your medical care.
High Deductible Medicare Supplement Plan G can save you a ton of money if you are a good fit for the plan.
By the end of this video, you’ll know whether High Deductible Medicare Supplement Plan G is a good option for you.
Confused about your Medicare coverage options? Watch our free video: How to Find the Best Medicare Coverage Without Paying More Than You Need To…
How does High Deductible Plan G work?
The premium cost for this plan is much lower than a standard Plan G. Like every other Medicare Supplement plan, High Deductible Plan G monthly premium cost varies from company to company and is based on where you live, your age, and other factors.
In the Chicago area, for a 65 year old female, the High Deductible Plan G rates are between $40 and $70 per month, as of the date of this video. Monthly premium costs for a 65 year old female for a standard Plan G in the same area range from $108 to $160.
Clearly, the premium savings of going with the High Deductible Plan G are pretty big.
BUT
What about the deductible?
In 2022, the deductible amount that you pay before the High Deductible Plan G pays anything is $2,490.
Does that mean you are paying for the first $2,490 in medical costs for the year?
No, it does not. Medicare Parts A and B are your primary health insurance. A Medicare Supplement plan is secondary insurance.
Medicare Parts A and B pay their claim responsibilities right from the beginning for any covered medical treatment you receive. What you are responsible for are the Medicare Parts A and B deductibles, copays, and coinsurance amounts up to $2,490 during the year.
For outpatient care, you are responsible for the Part B annual deductible of $233. If you reach and pay that, then Medicare Part B generally pays for about 80% of covered outpatient care, leaving your responsibility at about 20%.
The inpatient side of things is different. The Medicare Part A deductible is $1,556 per benefit period. After that Part A benefit period deductible is reached, you do have per day charges, should you have a very long hospital stay or skilled nursing facility stay.
If you reach $2,490 in spending on covered medical treatment for the year, the High Deductible Plan G kicks in and pays claims just like a regular Standard Plan G.
What that means in most cases is that, as long as all your medical care is covered by Medicare, after you’ve reached $2,490, you won’t have to pay any more besides your monthly premium for the rest of the year.
Is High Deductible Plan G a good fit for you?
It certainly might be!
Choosing the right plan for you comes down to evaluating your unique situation.
If you are pretty healthy and don’t need much medical care and have savings to cover the $2,490 deductible just in case of a catastrophic event or illness, then a High Deductible Plan G can be a great way to save money on your monthly premium costs.
Medicare Supplement premiums do usually go up every year, but not every plan has the same percentage amount of increase. High deductible plans have much smaller increases than the more comprehensive plans, like standard Plan G, so not only will your premiums with High Deductible Plan G start much lower, they will also go up much more slowly.
If you don’t make many office visits and aren’t hospitalized most years, your savings with a High Deductible Plan G will be substantial, due to the lower monthly premiums and smaller rate increases.
If you have a serious or chronic condition that requires many office visits or in office treatments, a High Deductible Plan G may not be a good value for you.
If you will be paying all or most of the $2,490 deductible in medical bills every year, that wipes out the savings in monthly premium. In that case, you would be better off with something more comprehensive, like a Plan N or standard Plan G.
Changing Medicare Supplements
Sometimes people are told that the Medicare Supplement plan they purchase at age 65 is the one they have to keep for life. That’s really not true.
All types of Medicare plans allow you to move from one plan to another. There are rules to follow when changing, but we’re here to help you with navigating those rules to make plan changes.
If you are healthy at age 65 and want a High Deductible Plan G, you aren’t locked into that plan forever. If your health does change in future years, making High Deductible Plan G no longer a good option for you, it is possible to change your coverage.
The laws vary widely from state to state for changing Medicare Supplement plans. We will walk you through what rights you have to change Medicare Supplement plans in your state, so you can be confident in your choice and know that you aren’t stuck in any plan.
Questions? We Can Help!
If you’d like to see what High Deductible Plan G rates are in your area, please feel free to give our office a call at 877-312-1414, or schedule a free, no obligation Medicare Plan Consultation.
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