Medigap Plan G

For all the care you receive through Original Medicare, you are expected to meet three basic payments:

• Premium: A monthly payment you must make in order to receive coverage
• Deductible: A yearly cost you must pay to your plan before you can access its benefits
• Copayment/Coinsurance: A flat price or percentage rate you pay for each service used through the plan

Even with supplement plan coverage, you will not receive coverage for your premium payments. However, a supplement plan, especially Plan G, can help with the other costs.

The 2021 deductible for Part A is $1,484, and $203 for Part B.

On top of all of this, you will also have to pay a contribution for each service you use under Original Medicare. This will typically either be a $20 copay or a 20% coinsurance rate.

There are also a lot of other fees that may sneak up on you—Parts A and B place strict limits on the extent of their benefits. If you stay in a hospital or nursing care longer than 100 days in an entire year, you will have to start paying out-of-pocket, not to mention the unexpected uncovered charges with Part B.

Now, let’s account for all of the costs if you had a Medigap Plan G. The only thing not covered in this list of fees is your Part B deductible at $203 per year—everything else can be subtracted from your out-of-pocket costs.

The average premium ranges from $50-200 a month. However, they can be as little as $0 if you choose a high-deductible option.

Regardless of how you charge your Plan G, it will ultimately pay for itself, costing on average $2,403 per year versus $6,577 without it, not including potential excess charges and copayments/coinsurance.