Medicare supplement Plan G was updated in 2010 and should now be considered by most beneficiaries as a smart purchase when supplementing original Medicare Parts A and B.
After Plan F, Plan G is one of the most comprehensive plans available. It is an affordable choice if you are willing to cover the small, one-time Part B deductible in exchange for lower monthly premiums.
Plan G covers all of the gaps in Original Medicare except for the Part B deductible. The Part B deductible amount in 2017 is $183. This amount usually increases year over year as designated by the government run Centers for Medicare and Medicaid Services, but the increases are small.
Prior to June 1 2010, Plan G only covered 80% of Part B Excess charges, but plans purchased after June 1 cover this benefit at a 100% level. If you live in or often travel to a state that allows doctors and/or hospitals to charge Part B excess, then it’s wise to consider a supplement that covers Part B Excess charges.
Plan F and Plan G are the only two policies that coverage Part B Excess Charges in their entirety. It is important to note that some states do not allow for Part B Excess Charges. Ohio is one such state. In this case, Plan N can be a good choice as well.
Plan G is usually quite affordable and typically costs around $20-$25 less than Plan F on a monthly basis. If you wish to keep your Medigap insurance premiums affordable, but also want to purchase comprehensive coverage, then Plan G can be a very good choice.
Almost all supplemental insurance plans will experience rate increases year over year and Medicare Supplement Plan G is no exception. Predicting future rate increases is difficult, but as long as you stay in reasonably good health, you should be able to purchase a less expensive policy in the future.
With some carriers, their Plan G rate increases have been smaller when compared to their other supplemental offerings. The reason is Plan G is not a guaranteed issue plan outside of open enrollment at age 65. Less availability and tighter underwriting standards can sometimes translate to lower costs and smaller premium increases.
In most states there in not a yearly open enrollment period which means you may need to undergo medical underwriting in order to qualify for new coverage. Underwriting is required to prove that you are in moderate to good health. Assuming you qualify medically, you can change to a new Plan G or any other Medicare supplement in order to keep your monthly premiums down.
There are several insurance companies offering Medicare supplement Plan G and new companies are entering the marketplace quite often. It is important to work with an agency that is keeping up with these changes. As more affordable plans become available from other carriers, it is wise to reach out to an agency like ours to compare your rates.
Whether you purchase Plan G, Plan F or any other Medicare supplement insurance policy, it is important to keep in contact with an agency like ours as rates increase and new carriers offer coverage in your area.
At Hyers and Associates, Inc. we are an independent agency specializing in Medicare supplemental insurance policies. We represent several providers and are always looking for new, low cost carriers for our current and prospective clients.
Category: Medicare Supplements