How does a Medicare Supplement High Deductible Plan G work?
The High Deductible Plan G (HDG) works kind of similar to other Medicare Supplement plans. The Medicare Supplement plans work in conjunction with original Medicare Part A and Part B to fill in the gaps that a person would normally be responsible for, without a Medicare Supplement.
There aren’t any networks for this High Deductible Plan G, nor for most of the other Medicare Supplement Plans. (With the exception of the “Select" plans). So a Medicare Supplement gives you the flexibility to go to any doctor or hospital in the United States that accepts Medicare. The main difference for this Medicare Supplement High Deductible Plan G is that you would need to satisfy the $2,800 deductible first, before your other benefits are covered by the Medicare Supplement High Deductible Plan G. (Note: That $2,800 deductible is for 2024. The deductible amount can change from year to year.) High Deductible Plan G does not cover the Medicare Part B deductible ($240/year in 2024); however, that deductible goes towards the larger ($2,800/year in 2024) deductible, so you would have already met it by the time you reach the $2,800 deductible.
So how that works, is that original Medicare will pay their 80%, and with this Medicare Supplement High Deductible Plan G, you will need to pay the other 20% up until you meet the $2,800 deductible. After that $2,800 deductible is satisfied, then you should be 100% covered for Medicare approved medical services for the rest of that year. Keep in mind that Medicare Supplements do NOT cover Part D (prescription drugs). You would need to purchase a stand alone Prescription Drug Plan (PDP) for Part D coverage!
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No one type of Medicare Insurance plan fits everybody the same. What may work best for one person, may not work very well for another person. It is a personal choice for you to decide, but it is important to get all the facts first before making a decision. It is also very important to pick the correct plan that you feel fits your needs.
In my opinion, below are some Pros and Cons of Medicare Plan G High Deductible.
Pros:
- Low monthly premiums
- Flexibility to go to any doctor or hospital in the US that accepts Medicare
- You don’t have to file any claims. Works seamlessly.
Cons:
- Large out of pocket expense of $2,800/year that you need to pay, before your insurance even starts to pay!
- Deductible can increase yearly (and has increased about 27% in the past 5 year time period)
- Most likely would have to Medically qualify, if years later you want to switch to another Medicare Supplement plan letter or switch to a different Medicare insurance company.
- Medicare Supplements do not include dental, vision, hearing, and many other benefits and perks that a Medicare Advantage plan may include.
- Does not include Part D Prescription Drug coverage. You would have to purchase a stand alone Part D Prescription Drug Plan (PDP) - Average monthly PDP premium is approximately $30/month, but varies each year.
- Combined Grand Total of Annual out of pocket expenses can be quite high, even if you don’t get very sick. You need to consider adding not just the low monthly Medicare Supplement HDG Premiums, but also add the Part B monthly Premiums that goes to the government, and the $2,800 annual high deductible you would be responsible for if you go to the doctor or hospital. Additionally, don’t forget to add the prescription drug plan monthly premiums, prescription drug plan deductible, copays, or coinsurance, plus any dental, vision, hearing expenses, etc. that you may incur, that are not covered in this Medicare Supplement High Deductible Plan G plan.
Note: Medicare Insurance information can be overwhelming and confusing to many people. As an independent licensed agent I can explain things to you in simple terms so you feel comfortable making a decision. Then I can help you choose and enroll in a plan that you feel fits your needs.
By the way, it doesn’t cost you any more if you enroll in a Medicare Insurance plan through me as an independent agent versus directly with an insurance company either over the phone or via the Internet, since I get paid by the insurance companies for your enrollment. Plus you will have personalized service by a local agent. If you would like my assistance, please call me at 941-404-5334.
By calling this number, I understand I will be directed to a licensed insurance sales agent.