Several insurance companies offer High Deductible Plan G. This newer Medicare supplement is available for sale now and offers some of the lowest rates available.
As part of the recently passed MACRA legislation, all plans covering the Part B deductible are unavailable to those who are newly eligible to Medicare in 2020 and beyond. This includes Plans F, C and High Deductible Plan F. The replacement for HD Plan F is High Deductible Plan G.
The first thing will be low rates. HD Plan F already offers some of the lowest rates of all supplement policies, and most High Deductible Plan G Medicare supplement quotes will be even lower. Depending on your age, where you live, and any household discounts, most plans will be around $40 a month. That’s the lowest you can find for any supplement.
And of course, there will be an annual deductible to meet as well. In fact, there will be two. The first would be the Part B Deductible ($226 in 2023 and $233 in 2022) and the second will be the actual High Deductible itself. For HD Plan G, Plan J, and HD Plan F, that amount is $2,700 for 2023. It was $2,490 for 2022.
These numbers move with inflation, and inflation has been elevated, so they are increasing more significantly the last few years.
The question is whether owners will be required to meet two deductibles with this new version of Plan G. The answer we’re hearing is, no. In other words, you’ll be working off the overall deductible while meeting the smaller Part B deductible.
For example, if you’ve met the Part B deductible, that amount would count towards and lower your High Deductible amount of $2,700. It should also be noted that one of our HD Plan G carriers offers a deductible waiver if you enroll mid-year. If you enroll in July (or after) your deductible would be reduced. This provides a strong incentive for those who might want to change sooner than later.
They are certainly a good choice for savings. Between your Part B premiums, a Supplement and a Part D drug plan, you can have significant monthly insurance outlays. This is especially true if you’re in a higher income bracket and assessed an IRMAA charge. Keeping your Medicare supplement premiums below $50 a month can help when you’re on a fixed income.
The other advantage to almost all Medicare supplements is that you can see any doctor or hospital that accepts Medicare. There are no networks to worry about. That’s not necessarily the case with many Medicare Advantage plans.
But once you choose a Medicare Supplement (like High Deductible Plan G), it can be difficult to change to a more comprehensive plan later. For most, you only get your one Open Enrollment (6 month) window when you’re new to Medicare Part B to purchase any plan you want.
After that, you’ll likely need to pass medical underwriting to switch to a new one. This means you can be turned down – even if it’s the so-called Open Enrollment window in the fall (AEP) each year. So you want to choose wisely as there are no guarantees of future changes.
There are several companies offering High Deductible Plan G policies. Aetna, Cigna, Humana, Medical Mutual of Ohio, Mutual of Omaha, United American, and many others are active in this market.
If you want to compare all plans and premiums at once, then you’re in the right place. Hyers and Associates is an independent insurance brokerage and we represent all companies directly to you – at no additional cost. Contact us today to learn about your best Medigap options.
Category: Medicare Supplements