Medigap Series: Plan G
We know, Medicare can sometimes make you feel like you are learning the alphabet all over again. There are Parts A, B, C, and D. Then you have Medigap Plans (also called Medicare Supplement Plans) that are G, K, L, and on and on. Thankfully, our advisors can walk you through everything you need to know and show you what options are best for you. Medicare breaks down costs like this: They pay 80% of covered charges, and you are left with the remaining 20%. In that ratio, it may not seem too bad; however, keep in mind that depending on what you are seeing your doctor for or going to the hospital to have done, could be very expensive.
If you have chosen the Medicare Supplement route, this means that the 20% of costs that you were responsible for, your Medicare Supplement plan will pick up. However, this plan will only pay for the remaining balance if it is covered by Medicare. What you pay is the premium for a Medicare Supplement plan and you must meet all the required deductibles.
If this is the option you are wanting to take, there are many different Medicare Supplement plans available as stated previously. How do you know which is right for you? The first step is to make sure your advisor knows you are interested in a Medicare Supplement plan, and they can help assist in which is the best fit. One commonly obtained Medicare Supplement plan is Plan G.
Plan G will cover these:
- The Part A deductible, coinsurance, and hospital charges (after Original Medicare benefits are used).
- The Part B co-payment, coinsurance, and excess charges.
- Skilled nursing facility coinsurance.
- Preventative care under Part B coinsurance.
- First three pints of blood (in a one-year time frame).
- Foreign travel emergency coverage (will have plan limits).
What is the difference in coinsurance, co-payment, and deductible?
Your coinsurance is a certain percent that you pay so that you and the insurance carrier each have a portion of costs that add up to be 100 percent. A co-payment differs from coinsurance because it is a flat fee you are charged for certain services. Your deductible is amount you set amount you are responsible to reach for the year before your benefits begin.
Notice, that the Part A deductible is covered under Plan G, but the Part B deductible is not. There were only two Medicare Supplement plans that included the Part B deductible, and they were Plan F and Plan C. If you were eligible for Medicare in 2020, Plans F and C were not an option for you. Many individuals have turned to Plan G, which is very similar to Plan F.
Plan G is known for being one of the most comprehensive plans, which is why many beneficiaries are interested in learning more about it.
Beginning this month, we are introducing our Medigap blog series where we discuss the different types of Medicare Supplement plans. Reading through these articles will highlight what each plan has to offer. For more information or questions, call one of our advisors at (877) 759-5760. They can look at your individual needs and match a plan that is right for you!