What Medical Services Does Plan G Cover?
Plan G covers hospital co-insurance and co-payments for Part B (but not the $203 deductible), the first 3 pints of blood, coinsurance for hospice care and skilled nursing facilities, the Part A deductible, part B excess charges, and limited foreign travel coverage. Dental coverage is not included.
Medigap Plan G: A Small Deductible = Big Savings
Medigap Plan B has a $203 deductible for outpatient services in 2021. After you meet the deductible, Plan G covers the full hospital deductible as well as Part A and B co-pays and co-insurance, including the co-insurance on medications administered by your healthcare provider. It does not cover the co-pay for prescriptions from mail-order suppliers or pharmacies.
If you enjoy foreign travel, you’ll be glad to know that Plan G covers expenses incurred in other countries up to the plan limits. Remember to investigate travel insurance before you travel.
What Medicare Plans are Going Away in 2021?
None of the Medicare supplemental insurance plans are going away entirely in 2020. Seniors who were already eligible for Medicare before 2021 won’t see any changes in the plans they are eligible to purchase. There are changes for new enrollees who won’t be eligible for Plan C or F.
Massachusetts, Minnesota, and Wisconsin have their own rules for Medicare supplements that differ from federal requirements.
What Changes are Being Made to Medicare Supplemental Insurance Coverage?
Medigap plans that cover the first dollar of outpatient deductible are being phased out for new Medicare beneficiaries. Individuals who were already eligible for Medicare before 2020 will continue being able to purchase Medicare supplemental insurance coverage that pays the full deductible for outpatient services (Part B).
This includes individuals who signed up for Part A but not Part B because they were still working and had coverage through their employer. Those who turn age 65 in 2021 or later, will have fewer coverage options. 2020 serves as a dividing line that separates Medicare beneficiaries who are eligible to purchase Plan F and those who are not eligible.
For many couples, this will mean one-half of the couple can purchase coverage that will pay the Plan B deductible and the other half of the couple won’t be able to buy the same coverage. This is likely to add further confusion to the process of choosing a supplement for many seniors.
Will Medicare Plan F Soon End?
Medicare Plan F may or may not be ending soon for you. If you became Medicare-eligible before the year 2020, you remain eligible for Medicare Plan F. For individuals who do not become Medicare eligible until 2020 or later, Medicare Plan F is not an option.
How Will That Change Retirees’ Costs?
Medicare Plan F covers the deductible for Part B. New Medicare beneficiaries will not be able to buy a supplement that pays the deductible for Part B, so they’ll need to pay the deductible out of pocket. This may not affect their costs as the premium difference may offset the cost of the deductible. It is not unusual for insurance carriers to charge more than the $203 increased benefit provided in higher premiums for Plan F.