Medigap G: A Solution to your Medigap F Problem

by Garrett Ball June 16, 2017

written by Garrett Ball June 16, 2017

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One of the superstars of Medigap plans in the last five years has been Medigap Plan G. This plan is one of the more comprehensive Medigap plans and has been increasing in market share and favorability with Medicare beneficiaries. Medigap G: A Solution to your Medigap F Problem

What Does Medigap Plan G Cover?

Medigap Plan G is one step down from the “Cadillac” Medigap plan, Plan F. Plan G fills in all the gaps in Medicare with the exception of the Medicare Part B deductible. For 2017, that deductible is $183/year.
Plan G pays the Part A (hospital) deductible, as well as the 20% coinsurance that Medicare does not cover under Part A and Part B. So on a Plan G, your only out of pocket costs for Medicare-covered expenses would be the Part B deductible amount.

How Does Medigap Plan G Work?

Plan G works just like Plan F and the other Medigap plans. It is designed to work with Medicare and fill in the remaining gaps after Medicare pays. Medigap G: A Solution to your Medigap F Problem
You can use a Plan G at any medical provider that accepts your primary coverage, Medicare. There are no networks on any Medigap plans, including a Plan G (Does my doctor accept my Medigap plan?).
Different insurance companies sell Plan G. In some states, there are as many as 30-40 companies that sell this plan. Each company may charge a different price for their Plan G, although the coverage is the exact same with each of them.
In addition, all the Plan G’s, regardless of which insurance company sells it, pay claims through the Medicare “crossover. This is Medicare’s automated claims payment system that works for Medigap plans and coordinates payments from your secondary insurance (Medigap). Medigap G: A Solution to your Medigap F Problem

Is Medigap Plan G Right for Me?

That is the “64 million dollar question”. Or, maybe it’s the $183 question! The Part B deductible is the only difference between a Plan F and a Plan G. So if the premium savings on a Plan G is greater than the deductible amount, it certainly makes sense to consider a Plan G.
There are other considerations as well. If you have researched Plan F, you may be aware that Plan F is scheduled to end for new beneficiaries as of 2020. What this means for current beneficiaries in Plan F is uncertain, but most analysts agree that Plan F rates will not be as stable moving forward once no “new” beneficiaries are put into that plan. This makes Plan G an even more viable alternative.
Lastly, historically speaking, Plan G has been more stable over time than Plan F has. Plan F is offered in certain “guaranteed issue” situations whereas ‘G’ is not offered in those situations. Over time, this means the pool of Plan G policyholders is slightly healthier, and this has led to more stability over time for Plan G vs Plan F.