Top 5 Reasons to Buy a Medigap Plan G
Depending on the rate in your area, a Medigap Plan G, is worth some serious consideration when shopping for Medicare Supplements. Here are the Top Five Reasons to Buy a Medigap Plan G
1. Medigap Plan G Has Great Benefits
Medigap Plan G offers 8 of the 9 Medicare Supplement Benefits. The only benefit it doesn’t cover is the annual Medicare Part B Deductible. In 2016 the deductible is $166 once a year.
Covered Medicare Supplement Benefits
- Medicare Part A Coinsurance (Hospital)
- Medicare Part B Coinsurance (Medical)
- Blood (First 3 Pints)
- Part A Hospice Care Coinsurance and Copay
- Skilled Nursing Facility Care Coinsurance
- Part A Deductible
- Part B Excess Charges
- Foreign Travel Emergency
Not Covered Medicare Supplement Benefits
- Part B Deductible
2. Historically Medigap Plan G Has Lower Rate Increases
For many of the reasons mentioned above, a Medigap Plan G tends to have lower rate increases over time. With a lot of insureds in a plan, insurance companies have more control over rates. Not having first-dollar coverage also helps to control costs. Not just by underutilization, but not having first-dollar coverage attracts an overall healthier group of insureds.
3. Medigap Plan G is a Popular Medicare Supplement
Because of its popularity among Medicare-eligibles, most companies will offer a Medigap Plan G. With so many options, as a consumer, you can be more selective when choosing a company to work with. Also, with so many companies selling a Medigap Plan G, the market will be more competitive, which translates to lower rates.
4. Medigap Plan G Has No Cost-Sharing or Copays
Cost-sharing and copays aren’t necessarily a bad thing, but it does make it harder to budget for future health care costs. With a Medigap Plan G, you are fully covered after paying your once a year Part B Deductible. The predictable costs of a Medigap Plan G make it a very attractive choice for many Medicare Supplement shoppers.
5. Medigap Plan G is Competitively Priced
Because the Medicare Part B Deductible is not covered, Medigap Plan G does not have first-dollar coverage. Without first-dollar coverage, people tend to see the doctor less. Because insureds don’t see the doctor for every sneeze and sniffle, Medigap Insurance Companies can price a Medigap Plan G with the assumption of lower utilization.
Purchasing a Medigap Plan G is a good choice. Of course, you should weigh the cost and benefits compared to other Medicare Supplement Plans in your area. I recommend comparing Medigap Plan N and available Medicare Select Plans.
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