Additional insurance is necessary for some people. It covers expensive out-of-pocket costs. As you age, you may need more care. Medicare Supplement Plan G in 2019 is one of the supplement plans of Medicare. This program may not be necessary for you if you have supplemental health insurance through a union or form your previous employer.
If you need a supplement insurance, however, then Plan G is a massive help with expensive healthcare costs that the Original Medicare will not cover. In most states, Medicare Supplement or Medigap is offered with 10 plans. And one of them is Plan G.
What is the coverage of this plan?
It is an ideal option for you if you want broader coverage. Concerning benefits, this plan is almost the same as the Medicare Plan F. Compared to other policies of the Medicare, Plans G and F offer the most detailed coverage. The only difference is that Plan G does not have Part B deductible. It means that you need to pay that part out of your own money.
The deductible may vary per year. You also need to pay for the medical costs out of your money once you reach a certain amount. After reaching the annual Medicare Part B deductible, you need to pay 20 percent of the approved cost for the covered services, like doctor visits.
This supplement plan can help you with out-of-pocket expenses, just like other Medigap plans. The benefits are aplenty. For instance, it covers hospital costs after your Original Medicare has been used up. It also includes hospice care coinsurance or copayment, as well as Part A deductible.
The Excess Charges
Plan G covers the excess charges of Part B. Most of the supplement plans do not include this part. Plan F and Plan G are the only ones that cover this benefit.
What are these excess charges? They are an additional expense for your health care that exceeds the Original Medicare costs. The cost depends on how much the doctor or provider charges you for a procedure.
The Medicare program has approved payment rates for specific medical services. This program will regulate how much doctors and providers can charge you for a medical service.
If you use a specialist who does not accept a Medicare-approved amount, then you have to pay the charges that such doctor would impose. The law only allows providers to charge up to 15 percent in excess charges above the approved amount of Medicare. State law provides further limitations.
Example of Excess Charges
If the allowed charge for a doctor visit is only $100, a non-participating Medicare physician can charge you an additional 15 percent for the appointment. Medicare would pay 80 percent of the $100, which is $80. You would have to pay the remaining $20 plus the 15 percent excess charge, which is $15. Thus, the total out-of-pocket costs would be $35.
Now, if you are enrolled in Medicare Supplement Plan G in 2019, you do not need to pay those out-of-pocket costs, i.e., $35, because this plan covers 100 percent of the excess charges.
Are the benefits different for every insurance company?
Medicare Plan G benefits are standardized. In that case, the benefits are the same regardless of where you purchase the policy. Then again, the costs and availability will depend on your location and insurance provider. For that reason, it is ideal that you compare insurance providers and the Medigap plans they offer. In that way, you will know what options are available in your service area.
You can use a plan finder tool to see if you can benefit from the coverage of Plan G or you need other plans.
How much savings can you get from choosing this plan?
It depends on your healthcare needs. Some subscribers have saved almost $300 per year by merely choosing this plan. With that amount of savings, it is no wonder it is getting more and more popular than Plan F, which offers a more comprehensive coverage.
As mentioned earlier, this plan covers the gap in Medicare, except the Part B deductible that is $183. Despite that amount, it still offers great coverage. If you need to stay in a hospital, you do not have to worry about hospital bill as this plan covers all hospital costs. It also pays the $1316 deductible that you would pay for a hospital stay.
What if you need an outpatient care?
It covers Part B deductible, which is the first $183 in expenses. So, for this year, you will pay $183 after receiving an outpatient care. Afterward, the plan will cover the remaining costs. As mentioned earlier, Medicare only pays 80 percent of the outpatient costs. Thus, the supplement will include the remaining 20 percent.
When looking for the right Medicare supplements for your case, it is ideal that you familiarize yourself with the benefits of Medicare and what each plan covers. In that way, it will be easier for you to choose the right supplement coverage.
The Medigap Plan F is the most comprehensive option. However, it is the most expensive plan. Hence, most supplement insurance subscribers would consider Plan G, instead, which is cheaper than Plan F. Then again, the cost will depend on your area. Now, if Plan G is reduced in your area, then opt for it. This plan requires that you pay the Part B deductible per year. Despite that, you get significant annual savings in premiums.
Plan G may also be a better option if you see a doctor once a year and visit a specialist several times a year for prescription renewal.
Most individuals consider Plan G because of its low premiums. Furthermore, it provides excellent savings. If you switched from Plan F and paid the Part B deductible for the calendar year, you can still enjoy the Part B deductible. You will only pay it for next calendar year.
But before you choose Medicare Supplement Plan G in 2019, it is vital that you talk to licensed agents who can explain to you the policy. You can request a rate analysis in your area to ensure you are making the right choice.