Is Medicare Supplement Plan G going away? The short answer is no, Plan G is not going away. Let’s take a look at the details.
First, what is Plan G?
Plan G is a Medicare supplement plan, and it does exactly that – it supplements your existing Medicare plan. It covers expenses that aren’t covered under Medicare Part A or Part B (Original Medicare).
After you turn 65, Medicare pays for 80% of your doctor/outpatient coverage. A Medicare supplement, such as Plan G, will pay the other 20%.
If you decide just to enroll in Medicare without a supplement plan, you will have to satisfy a Medicare Part A deductible of $1,400 per benefit period. If you have a recurring hospitalization, after a few months, you will likely have to pay that deductible again. That’s where the Medicare supplement policy comes in and helps offset that cost.
Plan G is a private plan sponsored by a private insurance carrier. Plan G will make you whole, meaning you will not have to pay a copay or a deductible unless you see a doctor in an outpatient setting, which is under Medicare Part B and then you have to satisfy a $226 deductible annually.
For beneficiaries who are new to Medicare and coming out of managed care plans, this is a huge win. You will no longer have the high deductibles you may have encountered with your private plans.
So Plan G has no other exposure beside the deductible of $226 for outpatient services. The plan is accepted across the country, so you can travel or relocate without losing access to care. There are no networks, so you’re not limited to a certain set of providers, in contrast to your previous managed care plans. You’re in control, so you can concentrate on things that are truly important to you and not get bogged down on having to make a health decision or being forced into a network.