Beginning in January 2020, Medicare Supplement Plan F was no longer available as an option to individuals who were turning 65 and new to Medicare. Plan G then became the most robust option. Beneficiaries who purchased Plan F’s ONLY paid their monthly premiums, and the plan paid 100% of the 20% original Medicare did not cover.
The only difference between Plan F and Plan G is that with Plan G, you pay your monthly premium plus your $203 2021 Part B deductible. After that $203 deductible is met, the supplement pays 100%.
What is Plan G
Plan G’ has been extremely popular over the past few years, but like many other things, Medicare coverage is not “one size fits all”.
While Plan G checks off all the boxes for many beneficiaries, there are a large number of people aging into Medicare who finds themselves in a unique position. They may be in excellent health with no pre-existing conditions or diagnoses, which means they don’t see a doctor frequently.
Many of the baby boomers who are aging into Medicare are leaving extremely high-paying jobs, and have substantial savings and expendable income. Having to pay a high deductible does not pose a financial hardship for them.
The 2021 Medicare Supplement High G Plan has a deductible of $2370 but comes with a much lower monthly premium. Beneficiaries who don’t see doctors regularly will see substantial savings in premium that would allow them to pay the High G 2021 deductible of $2370 – then pays at 100% like regular Plan G.
Basically, it comes down to the individual’s personal preference and financial situation. If you’re healthy and don’t see a doctor regularly and don’t mind paying out $2370 if and when you do need to see a doctor, then this may be a good option for you.
As we mentioned earlier, Medicare coverage isn’t one-size-fits-all. That’s why we recommend you sit down with a trusted Medicare advisor and allow them to show you all of your options, and help you choose the plan that meets your individual needs and budget.