Medicare Part G is a Medigap policy designed to fill the void in Medicare benefits under Original Medicare Part A and Part B coverage. Historically, Plan F had been lauded as one of the best Medicare Supplement plans, rich in benefits. However, as of January 1, 2020, it was removed as one of the plan options for newly eligible beneficiaries enrolled in Medicare. Medicare Part G offers comparable benefits and has emerged as the best and fastest-growing Medigap policy to supplement the basic benefits you get with Original Medicare.
Part G is the best Medicare Supplement Insurance
The only difference between G and Plan F is that F covers the Medicare Part B deductible. Medicare Part G does not. However, Part G has a lower premium that may offset the benefits of having the deductible covered. Many beneficiaries prefer to save on the monthly premium. Interest in Medigap Plan G is only expected to rise and to be hailed as the best of all the Medicare Supplement plans available.
What Does Medicare Part G Cover?
Medicare Part A and Part B Deductibles
Medicare Medicare Part G covers the Part A deductible. For 2022, the Part A deductible is $1,556. The Medicare Part B deductible, $233, is not covered.
Copays and coinsurance
You are not responsible for copays and coinsurance associated with Medicare Part A and Part B. Copay amounts vary across benefits. The Medicare Part A coinsurance in 2022, which is due to the hospital after an inpatient stay, is $389 from day 61 through day 90. The daily amount is $778 from day 91 until you exhaust your lifetime reserve days (maximum 60 days over your lifetime). Medicare Part B coinsurance is typically 20% of the Medicare-approved medical expenses.
Original Medicare Benefits
- Inpatient care in a hospital, skilled nursing facility (SNF) or non-medical, religious institution
- Hospice care
- Home health care (up to 100 days beginning within 14 days of a minimum three-day stay in a hospital or in skilled nursing facility care)
- Doctor’s office visits for services in and out of the hospital
- Outpatient care
- Home health services (after Part A home health care benefits are exhausted or if a hospital stay does not precede medically necessary home health care)
- Durable medical equipment (DME)
- Mental health services
- Many preventive services
What Does Medicare Part G Not Cover?
Non-covered medical expenses include:
- Custodial or long-term care
- Dental care
- Vision care, such as eyeglasses or contact lenses
- Hearing services, such as hearing aids
- Private nursing care and private hospital room
- Medicare Part A premium (Most people have premium-free Part A.)
- Medicare Part B deductible
- Medicare Part B premium
When Can I Enroll in Medicare Part G?
The month you turn 65 and have Medicare Part B is when you can expect the best rates. When you turn 65, or older, you have six months from the first day of the month in which your birthday falls. This six-month period is known as the Medigap Open Enrollment Period.
During this time, compare Part G rates to other plans to determine what is best for you. Within the open enrollment window, you will not be required to provide information on your health status or health history to get the best Medicare Part G rates. If you miss the open enrollment period, you can apply at any time. However, companies can then require medical underwriting for approval.
How Much Does Medicare Part G Cost?
In comparison to other Medicare Supplement plans, G rates sit on the high end of the spectrum. Unlike the standard Medicare Part B premium established by the Federal Medicare Program, Medicare Supplement insurance monthly premiums are set by each insurer.
Here is a brief description of each type of calculation method. When you compare these methods, you will be able to understand how each pricing model impacts rates:
- Community (also known as no age-rated): All beneficiaries who purchase Medicare Supplement plans within the same state will be charged the same rate. No distinction is made for age.
- Issue-age-rated (also known as entry age-rated): Rates for Medicare Supplement plans are determined by your age when you enroll. Therefore, younger applicants will be charged a lower monthly premium.
- Attained-age-rated: The rate is determined by your current age rather than your age when Medicare Supplement plans are issued. As your age increases, the insurance company will raise your monthly premium accordingly. You may be able to procure these policies at a relatively low rate initially but end up with an expensive monthly premium in the long-term.
These approaches influence initial Medicare Part G rates. In all cases, rates can increase due to inflation and other factors.
Guaranteed Issue Rights
If you apply during your initial open enrollment period when you turn 65, you will have guaranteed issue rights. Guaranteed issue rights, which is sometimes referred to as Medigap protections, require private insurance companies to:
- Sell you a Medigap policy
- Cover all pre-existing medical conditions
- Charge no more for a Medigap policy due to previous or current health issues
If you change or apply for Medigap Plans after this period, your application will go through underwriting. This means that the insurance company will factor age and health status into the pricing decision. Medicare Part G rates may be higher, or your application may be declined.
What is the difference between Medicare Part G and Part F?
The only difference is the Medicare Part B deductible. Part F covers this benefit whereas Medicare Part G does not. Therefore, Plan G rates tend to be slightly lower than Plan F.
How Often Do Medicare Part G Rates Increase?
Rates with all companies can change as the cost of care rises. That is why it’s important to have a relationship with an agent you trust. We can shop your rate year after year to ensure you continue getting the best deal. So far, rate increases seem to be lower than in previous years. By comparison, larger companies tend to have lower rate increases because they have a higher population of insured to spread the risk.
To get started, type your zip code, and click Start Quote. Enter basic information, and then browse competitive Medicare Supplement rates and popular plans from top carriers. You can also call us at 888-414-4547.
Let Us Help You Choose the Best Plan for You
If you’re confused about your eligibility for different health insurance plans or which type of plan might be right for you, feel free to give us a call. Our licensed agents are here to inform and guide you through the process.