Medicare High Deductible Plan G
Medicare High Deductible Plan G is almost the same as the regular version of Medicare Supplement Plan G.
However, the difference between these plans is that unless you meet the limit of your annual deductible of the Medicare-approved costs you are required to pay all the costs from your pocket.
The basic requirement for purchasing the High deductible Medicare Plan G is that you should be eligible to purchase the Medicare plan. The factors that decide the eligibility are age, disability, or ESRD.
Your coverage for regular Medicare Supplement Plan G will start when the annual deductible for the High Deductible Plan G limit ($2370 in 2021) is reached.
The users of the high deductible employer plan and the health saving plan know the worth of this plan and how its benefits.
How does High Deductible Medicare Plan G Work?
Just like other Medicare Supplement plans, the High Deductible Medicare Plan G also works and provides additional benefits to the Original Medicare plan. The seniors get exclusive coverage for their healthcare needs as this plan shares the expense of the service that is covered by the Original Medicare plan.
The coverage offered by Medicare Supplement Plan G is the best for those who want relaxation from the medical expenses and get peace of mind once purchasing it. However, the cost-conscious people prefer buying the High Deductible Plan G as the best option for cash-in on their substantial savings.
Once the annual deductible of High Deductible Plan G limit of $2370 is reached, then the remaining expense is paid by Medicare for the rest of the year.
Medicare will pay its 80% share of the medical expenses once you pay the Part B annual deductible, and leaves 20% for you to pay from your pocket. You need to cover the limit of the annual deductible from that 20% share.
To explain it more clearly lets briefly it with an example:
Suppose, you broke your knee in an accident and for that, you need to get treatment at the hospital for 3 days. With the purchase of Medicare Supplement Plan G, your major expenses at the hospital are covered by Medicare Part A except for the deductible.
However, you are required to pay $1484 from your pocket, which is almost double the deductible limit ($2370) of your plan.
After you get discharged from the hospital, and a week later, you still have a problem with your knee and you are recommended to have knee surgery by your orthopedic surgeon.
You don’t have to worry about paying the average cost of knee surgery which might be around $32,000 because Medicare will act as a helping hand here and will lower the burden from your shoulder by paying all the amount except the $886 the leftover annual deductible.
You need to remember that before High Deductible Plan G starts offering its coverage, you first need to pay the Medicare Part B deductible which is $2340 each calendar year.
Once you are done paying that limit of deductible, the policy becomes active and now you can easily get your medical services without worrying about the expenses.
Is it worth buying High Deductible Plan G?
It is human nature that everyone thinks about the benefits before purchasing any insurance plan and worrying about medical expenses is a very sensitive topic. You must be thinking; why do seniors buy a plan that has such a higher deductible rate.
Normally, these plans (high deductible version of Plan G and Plan F) are the best option for those who are not afraid of higher out-of-pocket costs as they haven’t used any money on their medical care luckily.
Many employers plan in the United States ranges from $4000 – $10,000 per annum, which is similar to Catastrophic Obamacare plans. So the subscribers of such plans prefer purchasing plans with a $2370 deductible.
High Deductible Plan G typically benefits a certain group of seniors but might not suit everyone especially those who don’t have a heavy bank account or saving for their healthcare needs. As the premiums for high deductible Plan G may vary from one insurance company to the other, so it’s better to survey and compare before making a final purchase.
So, if you think you are not ready to pay money from your pocket every time you visit your physician then this plan is not for you.
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