Medicare Supplement Insurance Plan G

• by Christian Worstell
• Reviewed by John Krahnert

Medicare Supplement Insurance Plan G covers 8 of the 9 Medigap benefit areas, which are listed below.

Medicare Supplement Insurance Plan G benefits

How Medigap Plan G works with Original Medicare

Medicare Supplement Insurance (Medigap) plans help cover some of the out-of-pocket costs of Original Medicare, such as deductibles, coinsurance and copayments.

Original Medicare is made up of two parts: Medicare Part A (hospital insurance) and Medicare Part B (medical insurance). You must be enrolled in Medicare Part B to be eligible for Medicare Supplement Insurance.

Medicare Part A is usually premium-free, as long as you paid sufficient Medicare taxes while working. Medicare Part B is optional and requires you to pay a monthly premium for your benefits.

In 2021, the standard Part B premium is $148.50 per month, but it could be more, depending on your income.

Medicare Part A and Medicare Part B help cover the costs for your hospital and medical care, but both leave some costs to you.

Medicare deductibles

Deductibles are what you must pay out of pocket before Medicare will pay its share for covered services.

In 2021, the Medicare Part A deductible is $1,484 per benefit period, and the Medicare Part B deductible is $203 per year.

Medicare Supplement Insurance Plan G fully covers the Medicare Part A deductible, but does not cover the Part B deductible.

Medicare coinsurance and copayments

Coinsurance and copayments are what you pay out of pocket for covered services after your deductible met.

The Medicare Part A coinsurance amounts are as follows:

• $0 coinsurance for days 1-60 spent in the hospital per benefit period
• $371 coinsurance per day of each benefit period for days 61-90
• $742 coinsurance per each lifetime reserve day after day 90, per benefit period

Typically, the Medicare Part B coinsurance is 20 percent of the Medicare-approved amount for covered services.

Medicare Supplement Insurance Plan G fully covers the Part A and Part B coinsurance/copayments.

Medicare Part B excess charges

Healthcare providers choose whether or not to accept Medicare assignment, meaning they accept what Medicare reimburses for a service as full payment. Providers that don’t accept Medicare assignment can charge up to 15 percent more than the Medicare-approved amount for covered services.

This is known as a Medicare Part B excess charge.

Medicare Supplement Plan G fully covers Medicare Part B excess charges.

First 3 pints of blood

If you require blood during a procedure, you may have to pay the hospital costs for the first 3 pints of blood that you get in a single calendar year.

Medicare Supplement Insurance Plan G fully covers the first 3 pints of blood.

Foreign travel emergency costs

Original Medicare does not typically cover health care services that are obtained outside of the United States and its territories. This means that you are responsible for 100 percent of health care costs while traveling abroad.

Medicare Supplement Insurance Plan G covers 80 percent of foreign travel emergency medical care costs.

What to know before you enroll in Medigap Plan G

The best time to enroll in any Medicare Supplement Insurance plan is during your six-month Medigap Open Enrollment Period, which begins the first day of the month in which you are 65 years or older and enrolled in Medicare Part B.

If you enroll in a Medigap plan during your Medigap Open Enrollment Period, insurance companies must sell you any plan they offer and cannot charge you more for a plan, regardless of your current health or medical history.

If you fail to enroll in a Medigap plan during your Medigap Open Enrollment Period, insurance companies can use medical underwriting to determine how much to charge you for a policy. This means that you could end up paying more for your Medigap plan or be denied a plan altogether.

Keep in mind that not every Medigap plan is available in every state, and some states do not offer Medigap plans to people younger than 65 who receive Medicare because of a disability or medical condition.

Remember, you may not enroll in Medigap Plan G — or any Medigap plan — if you are enrolled in a Medicare Advantage plan. You must leave your Medicare Advantage plan first.

A licensed insurance agent can help you learn about Medicare Supplement Insurance Plan G and other Medigap plans that may be available where you live. Call to speak with a licensed agent today.