Medicare is a federally funded health insurance program that’s made up of several parts, each providing different coverage options:

While Medicare covers many expenses, there are some things that aren’t covered. Because of this, about 90 percent of people with Medicare have some form of supplemental insurance.

Medigap is supplemental insurance that can cover some things that Medicare doesn’t. About one in four people enrolled in Medicare parts A and B are also enrolled in a Medigap policy.

Medigap has 10 different plans, each offering different types of supplemental coverage. One of these plans is Plan G.

Read on as we discuss the costs associated with Plan G, how you can enroll, and more.

Let’s break down some of the costs associated with Plan G.

Monthly premiums

If you enroll in a Medigap plan, you’ll have to pay a monthly premium. This will be in addition to your Medicare Part B monthly premium.

Because private insurance companies sell Medigap policies, monthly premiums will vary by policy. Companies can choose to set their premiums in a variety of ways The three main ways they set premiums are:

  • Community-rated: Everyone with the policy pays the same monthly premium, regardless of his or her age.
  • Issue-age-rated: Monthly premiums are set based on how old you are when you purchase your policy. Individuals who buy at a younger age will have lower monthly premiums.
  • Attained-age-rated: Monthly premiums are set based on your current age. Because of this, your premiums will increase as you get older.

Deductibles

While Plan G covers the Medicare Part A deductible, it doesn’t cover the Medicare Part B deductible. This is $198 for 2020.

Medigap policies typically don’t have their own deductible. This can be different for Plan G. In addition to normal Plan G (with no deductible), a high-deductible option is also available.

High-deductible Plan G often has lower monthly premiums. However, you’ll have to pay a deductible of $2,340 before your policy begins paying for benefits. There’s also an additional yearly deductible for emergency services used during foreign travel. In 2020 this is $250.

Copays and coinsurance

Plan G covers copays and coinsurance associated with Medicare parts A and B. If you have a Plan G policy, you won’t be responsible for these costs.

Out-of-pocket costs

There are some things that Medigap typically doesn’t cover, although this can vary by policy. When a service isn’t covered, you’ll need to pay the cost out-of-pocket.

Some examples of services that often aren’t covered in Medigap policies are:

Unlike some other Medigap plans, Plan G doesn’t have an out-of-pocket limit.

Let’s look at three example cities to examine Plan G costs.

Sample Medicare Plan G cost ranges

Atlanta, GA
(zip code: 30303)
Des Moines, IA (zip code: 50309) San Francisco, CA (zip code: 94017)
Plan G premium range $119
–$270 per month
$94
–$195 per month
$110
–$253 per month
Standard Medicare Part B premium $144.60 per month 144.60 per month $144.60 per month
Medicare Part B deductible $198 $198 $198
Total estimated yearly costs (includes Plan G and Part B premiums) $7,860 per year $7,670 per year $7,870 per year

Medigap Plan G is a very inclusive plan. It covers 100 percent of the following expenses:

  • Medicare Part A deductible
  • Medicare Part A coinsurance
  • Medicare Part A hospital costs
  • Medicare Part A hospice coinsurance or copay
  • skilled nursing facility coinsurance
  • blood (first three pints)
  • Medicare Part B coinsurance or copay
  • excess charges associated with Medicare Part B

Additionally, Plan G covers 80 percent of health services provided during foreign travel.

Medigap plans are standardized, which means each company must offer the same basic coverage. When you purchase a Plan G policy, you should receive all of the benefits listed above regardless of the company you purchase it from.

Plan F is the most inclusive of the different Medigap plans. However, who can enroll has changed beginning in 2020.

These changes are because Medigap plans sold to those new to Medicare can no longer cover the Medicare Part B deductible, which is included in Plan F.

Those who already have Plan F or were new to Medicare prior to January 1st, 2020 may still have a Plan F policy.

Plan G may be a good option if you are new to Medicare and can’t enroll in Plan F. The only difference in coverage between the two is that Plan G doesn’t cover the Medicare Part B deductible.

You can first buy a Medigap policy during Medigap open enrollment. This is a 6-month period that starts the month you’re 65 or older and have enrolled in Medicare Part B.

Other enrollment guidelines associated with Medigap include:

  • Medigap policies only cover one person, so your spouse will need to buy their own policy.
  • Federal law doesn’t require that companies sell Medigap policies to those under 65. If you’re under 65 and eligible for Medicare, you may not be able to purchase the Medigap policy that you want.
  • You cannot have both a Medigap policy and a Medicare Part C (Advantage) policy. If you want to purchase a Medigap policy, you’ll have to switch back to original Medicare (parts A and B).
  • Medigap policies cannot cover prescription drugs. If you’d like prescription drug coverage, you’ll need to enroll in a Medicare Part D plan.

Medigap policies are guaranteed renewable, regardless of whether or not you have health problems. This means that your policy can’t be canceled as long as you continue to be enrolled and pay your premiums.

Private insurance companies sell Medigap policies. You can use Medicare’s search tool to find out which plans are offered in your area.

You’ll need to enter your zip code and select your county to see available plans. Each plan will be listed with a monthly premium range, other potential costs, and what is and isn’t covered.

You can also look at the companies that offer each plan and how they set their monthly premiums. Because the cost of a Medigap policy can vary by company, it’s very important to compare several Medigap policies before selecting one.

Where to find help choosing a Medigap Plan

You can utilize the following resources to help you choose a Medigap plan:

  • Online search tool: Compare Medigap plans using Medicare’s search tool.
  • Call Medicare directly: Call 1-800-633-4227 for any questions or concerns related to Medicare or Medigap.
  • Contact your state insurance department: State insurance departments can help provide you with information on Medigap plans in your state.
  • Contact your State Health Insurance Assistance Program (SHIP): SHIPs help to provide information and advice to those enrolling or making changes to their coverage.

Medigap Plan G is a Medicare Supplement Insurance plan. It covers a variety of expenses that aren’t covered by Medicare parts A and B, such as coinsurance, copays, and some deductibles.

If you buy a Plan G policy, you’ll pay a monthly premium, which can vary by the company offering the policy. This is in addition to your Medicare Part B monthly premium.

Other costs include the Medicare Part B deductible as well as benefits that aren’t covered by Medigap, such as dental and vision. If you have high-deductible Plan G, you’ll need to pay a deductible before your policy begins to cover expenses.

Plan G may be a good option you are not allowed to purchase Plan F. The only difference between the two plans is that Plan G doesn’t cover the Medicare Part B deductible.