Medicare’s Best Kept Secret
The high deductible plan g or HDG is one of Medicare’s best kept secrets if not THE best. There are 4 main reasons seniors don’t purchase this plan.
- They don’t understand exactly how that deductible works (if they did they wouldn’t mind it).
- It’s so cheap it must not be a good plan (wrong)
- They don’t realize that Medicare is still paying 80% of their expenses.
- Their agent didn’t mention this plan.
First of all, the deductible for the HDG is $2,490 which is significantly lower than most employer/underage plans. Why Medicare chooses to call it “high” is unknown to us. Once that deductible is met, you’re then covered 100% for all Medicare approved expenses. It is literally the same exact coverage as the Plan G. You can confirm this yourself by viewing the chart a little further in this article and comparing the HDG and Plan G side by side.
The key part of this is that Medicare is still paying 80% of your expenses AND you only have to pay 20% of the approved amount which is, most often, significantly lower than what the doctor charges. So, if you went to the doctor and your bill was, say, $1,000, Medicare would approve around $500. You would only owe 20% or $100 of this $500 bill. Then, this $100 is credited towards your deductible amount of $2,490. Knocking it down to $2,390. You get credit for everything you do.
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The Chart Breakdown
Let’s look at the average premium of a plan G and HDG in Florida and see why the HDG is a no-brainer. *The savings is even more extreme in NY and other parts of the country.
|Avg Annual Premium||Deductible||Max-Out-of-Pocket (premium + deductible)|
|Plan G: $2,400 ($200/mo)||$233||$2,633|
|Plan HDG: $600 ($50/mo)||$2,490||$3,090|
In the above example, if you have the Plan G, you’re paying an average of $2,400 per year no matter what. You’re paying this whether you go to the doctor or not. With the HDG, you’re paying $600 a year no matter what, but now you get to pay as you go for your expenses.
A usage example
So, let’s say you went to the doctor 10 times and your average expense was $150 each time. This means you would owe $1,500 for that year. Let’s add your annual premium of $600 and your total out of pocket for the year is $2,100. Looking at the Plan G max out of pocket of $2,633, this would have saved you $533. All while going to the doctor 10 times!
But, what if you only go to the doctor 1 or 2 times per year? First of all, you get an annual check up that’s 100% covered by Medicare. In this scenario you’d be saving well over $2,000 per year. Multiply this over 10 year and you’re saving 20k or more.
Another way of looking at this, although sometimes confusing to some, is that it’s like buying an airline ticket for $3,090 (max out of pocket for HDG) and buying insurance on that airline ticket for $2,633 (max out of pocket for G). You’d never do it!
What’s my worst case scenario?
Now, what happens if you hit your deductible on the HDG? Well, then you would have lost around $400 by going with the Plan G. So, if you’re the type that’s constantly using your plan due to a chronic pre-existing condition and you know you’re going to be hitting your deductible on the HDG, then this plan isn’t right for you. But for many, if not most seniors, you’re going to save that money year after year.
To learn if the HDG is right for you, you can fill in your basic information into the form and get the average premiums of the HDG and Plan G in your area. We hope you enjoyed this tip and please give us a call if you have any questions on this plan. We can be reached at 1-888-299-0069.
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