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Category: Medicare Supplement

Medicare Supplement Plan G – Part G

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Plan G: The Plan With The Most Value

Medicare Plan G coverage is very similar to Plan F, which is no longer available for people new to Medicare on or after January 1, 2020. Plan G offers great value for beneficiaries willing to pay a small annual deductible. After that, Plan G provides full coverage for all of the gaps in Medicare. It pays for your Medicare Part A hospital deductible, copays, and coinsurance. It also covers the 20% that Medicare Part B doesn’t cover. Doctors and other healthcare providers must accept a Medigap Plan G if they accept Original Medicare. Plan G policies can be used across the U.S. since they do not have network limitations, and the premium costs can be very reasonable for the coverage you receive.

What Medical Services Does Plan G Cover?

Medicare Supplement Plan G covers your percentage of any medical benefit that Original Medicare covers, except for the outpatient deductible. So, it helps to pay for inpatient hospital costs, such as the first three pints of blood, skilled nursing facility care, and hospice care. It also covers outpatient medical services such as doctor visits, lab work, diabetes supplies, cancer treatment, durable medical equipment, x-rays, ambulance, surgeries, and much more. This means Plan G covers the coverage gaps with Original Medicare, and all Plan G products must provide you with the exact same coverage.

Medicare pays first, then Plan G pays the remaining amount after you pay the once-annual deductible. In addition, Plan G Medicare Supplements offer up to $50,000 in foreign travel emergency benefits (up to plan limits).

Medigap Plan G: A Small Deductible = Big Savings

Medicare Plan G, also called Medigap Plan G, is an increasingly popular Supplement for several reasons.

First, Plan G covers each of the gaps in Medicare except for the annual Part B deductible. This deductible is only $233 in 2022. In fact, if you have a Plan F that has been in place for years, we can probably help you on premiums by looking at Plan G. When we help you shop rates at Boomer Benefits, we can often find a Supplement Plan G that saves quite a bit in premiums over Plan F, usually substantially more than the $233 deductible that you’ll pay out. You pocket the difference.

Second, it has great coverage. For hospital stays, it covers all your hospital expenses. Most importantly, it pays the hospital deductible, which is over $1,556 in 2022. It also covers the expensive daily copays that you might encounter for a hospital stay that runs longer than 60 days. It provides an additional 365 days in the hospital after your Medicare benefits run out, and it covers your skilled nursing facility co-insurance, too.

Medicare Supplement G usually costs more than Plan N because it covers more. People seem to like the security and peace of mind that a comprehensive policy like Plan G appears to offer and, therefore, are willing to pay the higher premium cost.

Medicare Plan G Case Study: Amazing Coverage

Frank is a diabetic who has Medicare Supplement Plan G. He sees his primary care doctor once per year but visits his endocrinologist several times a year to renew his prescriptions. In January, he goes to his first doctor visit for the year. The specialist bills Medicare, which pays 80% share of the bill except for the $233 outpatient deductible, which is billed to Frank for payment. His Medicare Supplement Plan G pays the rest. Frank’s coverage even provides his lancets, test strips, and a new glucose meter at no charge to him. Medicare and his Supplement work together to pay 100% of the costs for these diabetes supplies.

For the rest of the year, Frank will owe absolutely nothing out of pocket for covered Part A & B services. His Medicare Plan G coverage takes care of the cost-sharing amounts for him. His only copays will be for his medications under his separate Part D prescription drug card. This means he doesn’t have to worry about any more doctor copays. He won’t pay for lab work or imaging. If he has surgery, Medicare will cover 80% of the cost and his Plan G will cover 20%. Plan G is a really great Medigap plan in this respect.

How to Enroll in a Plan G

There are a few different ways to apply for a Medigap Plan G policy. A majority of enrollees will use the Medigap Open Enrollment period to apply for a policy. When you enroll during this window, you will not have to answer health questions on the application and the insurer cannot deny you coverage. It is a six-month window from your Part B effective date. Those who qualify for Medicare before 65 due to disability will have an additional Open Enrollment window when they turn 65.

However, you may need to answer health questions, and your approval is not guaranteed when you are outside that window. So, you could be denied based on certain health conditions. Additionally, the price could change if the insurance company decides to approve you but rate you up.

Some states have exceptions to this rule, such as California and Maine. The state law for both states allows enrollees to change their policy with no health questions from year to year. However, rules will vary with each state as well as the Medicare Supplement insurance company. Residents in these states can take advantage of this exception when the cost of premiums increases each year.

Medigap enrollments are different from Medicare Advantage plan enrollments as you can only apply for an Advantage plan during specific times of the year.

We Can Enroll You Today — No Enrollment Fees!

Reach out to us today: https://www.azhealth.us/contact-us/

Enrolling in Medicare? Here are three key things you need to know — not understanding one can lead to a lifelong penalty

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Enrolling in Medicare? Here Are Three Key Things You Need to Know — Not Understanding One Can Lead to a Lifelong Penalty

Medicare may seem like a maze when you first try to navigate it. After all, there are different “parts” to the federal health insurance program, which provides coverage for about 56.5 million individuals in the 65-and-older crowd. And, whether you’re reaching the eligibility age of 65 or you are older and switching from workplace insurance to Medicare, there are some important factors to consider that affect your wallet.

First, however, it’s worth knowing the basics: Original Medicare consists of Part A (hospital coverage) and Part B (outpatient care). Some beneficiaries choose to get those benefits delivered through an Advantage Plan (Part C), which typically includes prescription drug coverage (Part D). Others stick with original or basic Medicare and, possibly, pair it with a standalone Part D plan and a so-called Medigap policy.

Here are three key things to be aware of as you prepare to enroll.

1. It’s Going to Cost You

Medicare is not free.

“This comes as a surprise to so many beneficiaries who have paid [payroll] taxes throughout their working lifetimes and assumed this would mean Medicare would be ‘paid up’ by the time they turn 65,” said Danielle Roberts, co-founder of the insurance firm Boomer Benefits.

“Those taxes will mean no premiums for Part A, but Parts B and D have premiums that beneficiaries pay monthly throughout their retirement years,” Roberts said.

Premium-free Part A is available as long as you have at least a 10-year work history of paying into the system via payroll taxes. If not, monthly premiums could be as much as $499 in 2022, depending on whether you’ve paid any taxes into the Medicare system at all. Spouses without their own work history may qualify for premium-free Part A as well.

Part A also has a deductible of $1,566, which applies to the first 60 days of inpatient hospital care in a benefit period. For the 61st through 90th days, beneficiaries pay $389 per day, and then $778 per day for 60 “lifetime reserve” days.

Meanwhile, Part B’s standard monthly premium is $170.10 this year. However, some beneficiaries pay more through income-adjusted surcharges.

“Many of my high-income earners are shocked at how much Medicare premiums will cost them in retirement,” said Elizabeth Gavino, founder of Lewin & Gavino and an independent broker and general agent for Medicare plans.

The government uses your tax return from two years earlier to determine whether you’ll pay extra. To request a reduction in that income-related amount due to a life-changing event such as retirement, the Social Security Administration has a form you can fill out. Part B also has a deductible: $233 in 2022. Once that’s met, beneficiaries generally are responsible for 20% of covered services.

Part D premiums, deductibles, and copays depend on the specifics of the coverage. The average premium this year is about $32, according to the Centers for Medicare & Medicaid Services. And, as with Part B, higher earners are charged extra through IRMAAs.

2. Missing Key Deadlines Can Mean Paying Extra

If you’re planning to sign up for Medicare as soon as you’re eligible at age 65, you get a seven-month “initial enrollment period” that starts three months before the month of your 65th birthday and ends three months after it.

Meanwhile, if you delayed signing up at age 65 because you continued to work and your employer coverage was acceptable (according to Medicare standards), you get eight months to enroll once your workplace plan ends.

Regardless of the enrollment rules you’re subject to, missing the deadline to sign up for Part B can result in a life-lasting late-enrollment penalty. For each full year that you should have been enrolled but were not, you’ll pay 10% of the monthly Part B standard premium.

Part D also has a late-enrollment penalty if you miss the deadline. For people signing up during their initial enrollment period at age 65, you get the same seven months for Part D as you do for Part B. However, if you’re beyond that window and your workplace coverage is ending, you get two months to enroll in Part D, whether as a standalone plan or through an Advantage Plan.

The penalty is 1% of the national base premium for each month you didn’t have Part D or creditable coverage and should have.

3. Supplemental Insurance May Make Sense

The various costs associated with basic Medicare may be different if you have supplemental coverage.

One option is to enroll in an Advantage Plan. While you would generally continue to pay your Part B premiums, many plans have a low or zero premium. And in addition to usually including prescription drug coverage, Advantage Plans also may offer extras such as dental, vision, and hearing.

Advantage Plans come with a cap on out-of-pocket spending, unlike basic Medicare. Their cost-sharing structures — i.e., deductibles, copays, or coinsurance — also are different and vary from plan to plan.

However, the annual maximum out-of-pocket can be high: in 2021, it averaged $5,091, according to the Kaiser Family Foundation. You also may be required to use certain doctors, hospitals, and pharmacies.

“These plans have networks of providers, and some plans will require you to choose a primary care physician and get referrals to see certain providers and prior authorizations for many of the more expensive procedures, tests, and surgeries,” Roberts said.

Your other option is Medigap, which picks up some cost-sharing associated with basic Medicare, such as the Part A deductible or Part B copays. These policies are offered by private insurance companies as well but are generally standardized — same-named plans offer identical benefits no matter which insurer sells it. Available Medigap policies are designated A, B, C, D, F, G, K, L, M, and N, and each offers a different level of coverage.

However, they can be pricey, depending on the insurer and where you live. A 65-year-old woman in Dallas might pay under $100 monthly for Plan G, while in New York that same person would pay $278, according to the American Association for Medicare Supplement Insurance. And, generally speaking, those premiums rise over time.

Choosing between an Advantage Plan or Medigap (or neither) can involve things that go beyond cost and depend on the specifics of your situation. This makes it worth consulting with either an experienced Medicare agent or your local State Health Insurance Assistance Program, otherwise known as SHIP, and neither would cost you anything for guidance.

“There are many factors to consider when choosing between these two options,” Gavino said.