High Deductible Medicare Supplements
Today, we’re talking about Medicare Supplements, and one in particular: High Deductible Plan G. However, the very first high deductible Medicare Supplement plan was High Deductible Plan F.
If your Medicare Parts A and B effective dates are before January 1, 2020, a High Deductible Plan F is still available to you as an option, but for anyone with Medicare Parts A and B effective dates of January 1, 2020 or later, High Deductible Plan F is not available.
The reason for that is the Medicare Access and CHIP Reauthorization Act of 2015, which prohibited Medicare plans from covering the Medicare Part B outpatient annual deductible for all enrollees starting on Medicare January 1, 2020 or later.
Confused about your Medicare coverage options? Watch our free video: How to Find the Best Medicare Coverage Without Paying More Than You Need To…
High Deductible Plans in 2021
When High Deductible Plan F went away for new enrollees, High Deductible Plan G was introduced. In general, I no longer recommend new enrollments into High Deductible Plan F, even for those who are eligible to purchase it. For the details on why, I’ll link to another video about Plan F and Plan G.
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 $38 and $70 per month, as of the date of this video. Monthly premium costs for the same hypothetical person, a 65 year old female in the same area for a standard Plan G are between $94 and $180.
Clearly, the premium savings of going with a High Deductible Plan G are pretty great, but what about that deductible?
In 2021, the deductible amount that you pay before the High Deductible Plan G pays anything is $2,370.
Does that mean that you have to pay for the first $2,370 of your medical costs for the year?
No, it does not. Medicare Parts A and B will still be paying their parts for any covered medical treatment that you receive. What you are responsible for are the Medicare Parts A and B deductibles, co-pays, and coinsurance amounts up to $2,370 during the year.
Outpatient Costs
For outpatient care, you are responsible for the Part B annual deductible of $203. If you reach and pay that, then Medicare generally pays 80% for covered outpatient care, leaving your responsibility at about 20%.
Inpatient Costs
The inpatient side of things is different. The Medicare Part A deductible is $1,484 per benefit period. For an explanation of how benefit periods work, please see the linked benefit period video. After that deductible is reached, you do have per day charges, should you have a very long hospital stay or a skilled nursing facility stay.
What if you reach the deductible?
If you reach $2,370 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 $2,370, you are unlikely to have to pay any more other than your monthly premium for the rest of the year.
Is High Deductible Plan G a good fit for you?
Well, 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 $2,370 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 monthly premium costs.
Plan Premium Increases
I should also note that Medicare Supplement premiums do usually go up every year, but not every plan has the same percentage amount of increase. In the past, the high deductible plans have had much smaller increases than the more comprehensive plans, like a standard Plan G, so not only will your premiums with the High Deductible Plan G start much lower, they will also go up much more slowly.
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 watch our free online video to learn how to find the best Medicare coverage for you.
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