At the end of 2021, the new 2022 Medicare premiums, Medicare Advantage plans, and Part D plans were announced. Many people were shocked that the Medicare Part B premium increased more than $20 per month. Those who were enrolled or looking to enroll in a Medicare Supplement Plan G in 2022 wondered what the cost of that plan would be.
Medicare Supplement (Medigap) premiums vary based on several factors, including location. Someone enrolling in a Plan G in one state will pay a different premium than an enrollee in another state. However, the coverage is the same no matter where you live in the U.S. Medigap Plan G will cover the gaps in Medicare for you.
Medigap Plan G Coverage
It is crucial to understand how Plan G works and what coverage Plan G offers. A Medigap G Plan is secondary to Original Medicare, so you must be enrolled in Medicare Part A and Part B, covering inpatient hospital stay care and outpatient care. As long as Medicare pays for a service, your Plan G will cover your out-of-pocket costs after Medicare. You can also travel across all states in the country with a Medigap plan because you can see any doctor that accepts Original Medicare.
Plan G will cover all costs except the Part B annual deductible, which is $233 in 2022. Plan G benefits include the Medicare Part A hospital costs, Part B coinsurance, first 3 pints of blood, Part A hospice care coinsurance, skilled nursing facility care copayments, Part A deductible, and Part B excess charges. Once you satisfy the Part B deductible, approved hospital and medical services will be covered 100% between Medicare and your Medigap Plan G no matter the amount of the service. So services such as x-rays, cancer treatment, procedures, surgery, and diabetic test strips, will be covered 100% once you meet the deductible.
Additionally, Plan G is one of the Medicare Supplement insurance plans that cover foreign travel emergency expenses at 80% once you meet the deductible of $250.
High-Deductible Plan G Coverage and Cost
There is a standard Plan G and a high deductible Plan G. The high deductible requires you to satisfy the $2,490 deductible before you are covered 100% like you would be with a standard Plan G. Generally, these premiums are relatively low because you will have more out-of-pocket expenses.
How Much Does Plan G Cost?
All Medigap plan rates are based on zip code, age, gender, and tobacco use. So, a female who is 65 years old and lives in Texas will pay a different Plan G premium compared to a female who is 68 years old and lives in Florida. Several health insurance companies may offer a Plan G in your zip code, so how do you choose?
How Carriers Set Their Premiums
Although all Plan G’s coverage is the same, the insurance carrier can choose to set their premium how they see fit. Generally, you will find at least three to five carriers with competitive premiums. Looking at carriers that set their premiums much higher than the others may not make sense since the coverage is the same. However, all premiums are based on the factors mentioned above. Some carriers will give a household discount if you are married or living with someone, which can save you money on your premium.
What to Consider When Looking at Carriers
Aside from the premium, you will want to know the carrier’s rating and increase history. All Medigap plans experience increases as they are inevitable. However, some carriers increase more than others. Additionally, there are three different ways a policy will increase. They could be considered community-rate, attained-age, or issue-age, which will vary with each carrier and state. Generally, you will find that one or two pricing methods may be more common in one state compared to another.
How Often Do Medigap Plan G Policies Increase?
The frequency of increases will vary with each insurance company. Some insurance companies will increase once a year, and others may increase twice a year. You can ask your agent or broker if your carrier has a trend or set frequency.
How Do Plan G Prices Compare to Other Medigap Plans?
Medigap Plan G is the most popular Medigap plan in 2022. Although Medigap Plan F is more comprehensive, it is not available to anyone new to Medicare since January 1, 2020. Plan F also tends to have a higher premium because it covers the Part B deductible for you, which is the main difference between Plan F and Plan G.
Plan N is another popular plan in 2022. The price tends to be slightly lower than Plan G because it does not cover as much as Plan G. For instance, Plan N has $20 copays for office visits and $50 copays for emergency room visits, and it does not cover Part B excess charges.
The cost of Medicare Plan G in 2022 will vary for each beneficiary because premiums are based on several factors. You will want to contact a licensed insurance agent or broker for help looking at Medigap policies and to ask any questions you may have. However, rules will vary with each state. If you live in Minnesota, Wisconsin, or Massachusetts, you will want to note that Medigap plans are different in those states. You don’t have a standard Plan G, although you can build a plan equivalent to Plan G to meet your needs. A licensed insurance agent will be able to guide you through your options.