How to Save Money with Medigap Plan G

How to Save Money with Medigap Plan G

Many retirees wish to cut down on spending and preserve their nest egg without having to forego peace of mind about their healthcare.
This makes choosing the right Medigap plan an important decision. Many beneficiaries these days are turning to Medigap Plan G.
So how exactly does the Medigap Plan G help you save money over Plan F? Why should you switch to the Plan G? Are there any downsides to this plan? 

Why Plan G Supplement?
Most people on Medicare have heard of Plan F. It has been the top-selling Medigap plan for many years. It is considered the most comprehensive plan. 
Here’s why:
After paying the monthly premium, Plan F policyholders will not need to incur any out-of-pocket costs for covered medical expenses. Therefore, many people have chosen this plan even though it is the most expensive Medicare supplement.
However, Plan G can sometimes be the smartest option. Let’s look at the costs and benefits to see why.

Plan G Benefits

Medigap Plan G covers almost everything that F does. The one exception is the Part B deductible. This deductible is only $183 in 2017. 
So, if we compare premiums for Plan F and Plan G, and the annual premium for Plan G saves you more than $183, Plan G is a no-brainer. 
Let’s look at an example: 
Joe has been on Plan F for 3 years. Each year he has gotten a rate increase of around 10%. He decides to shop for better rates. 
His agent runs quotes for insurance companies offering Plan G and finds that the lowest cost carrier offers Plan G for $30/month less than what Joe is paying for Plan F.
This saves Joe $360/year. Since he will incur the Part B deductible, he must subtract that amount from the savings. 
If you do the math, that’s an extra $177 right back in his pocket every year. It’s easy to see why Plan G is attractive.

Medigap Plan G is Comprehensive
With Plan G, you still get great peace of mind about your coverage too. 
Plan G covers all your hospital expenses, paying the deductible that you would normally owe for any hospital stay. 
After your one-time Part B deductible, all your outpatient care during a given year is covered as well. Medicare Supplement Plan G takes care of all the remaining expenses. 
If Medicare approves your claim, it will pay 80%, and Plan G pays the other 20%. This applies even for expensive services like surgeries, CT scans, ambulance rides and chemotherapy. 
For people who are still learning about Medicare, understanding that Plan G is still very comprehensive is important.

Long-Term Rate Savings with Medigap Plan G

Another aspect of Plan G is long-term rate savings. Thus far, it has had a lower rate increase trend from year to year than Plan F. 
There are a variety of reasons for why this happens, but one reason is that people with many health conditions tend to choose Plan F. They want the security provided by first dollar coverage.
Plan G, on the other hand, attracts a lot of people who rarely go to the doctor. Plan G appeals to them because if they don’t go to the doctor at all that calendar year, they save the $183 deductible.
Clearly, this is good for both the policyholder and the insurer, who does not have to pay any claims when you aren’t using your Medicare.
Since Plan G incurs fewer losses, this, in turn, creates more stable rate and often lower rate increases.
Here’s something else you might want to consider – if you are switching from a Plan F that has already paid your Part B deductible for the current calendar year, you won’t be subject to that deductible on Plan G until next year. Now that’s another great reason to consider this plan!
In any case, Plan G has the same benefits as the Plan F, minus the Part B deductible. Once the Part B deductible is paid, they both offer full coverage. 

Conclusion

Ultimately, Plan G has the same benefits as the Plan F, minus the Part B
deductible. Once the Part B deductible is paid, they both offer full coverage. Checking rates for Plan G with your broker is a good idea. You might just find some healthcare savings this year with Plan G.