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Michael T Braden September 10, 2024 Medicare Supplement Plans
WHAT IS A HIGH DEDUCTIBLE MEDICARE SUPPLEMENT PLAN?
IS A HIGH DEDUCTIBLE MEDICARE SUPPLEMENT PLAN G WORTH CONSIDERING?
For many people, High Deductible Medigap Plans (HDG and HDF) might make sense, but they honestly would not be my first choice for the majority of Medicare Beneficiaries. The allure of a High Deductible Medicare Supplement/Medigap plan is the lower premiums, some of which can be under $50 per month. But, instead of having the normal $240.00 Part B Deductible, the Deductible is $2,800. But, that in itself is misleading.
Original Medicare will still pay 80% of all costs from day one, and you will still have to pay teh Part B Deductible of $240.00. But, that does count toward the $2,800 Deductible for the Plan. So, your Maximum Out of Pocket Expense is $2,800 for the year. Conversely if you chose the traditional Medicare Supplement route, a Plan G will costs around $150 per month up until Age 70 some could be higher based on your Tobacco use, and a Plan N would run in the neighborhood of $100 Per Month. For Plan G that5 is $1,800 Per Year in Premiums and your only Out-Of-Pocket Costs should be the $240. Part B Deductible for a total of $2,040. A Plan N would run about $1,440 including the Part B Deductible.
My concerns with everyone is to A) keep as much money in your pocket as possible. B) Be aware that the rate is much lower for a HDG, but; what happens if you get dealt a bad hand. If you have a Cancer Diagnosis, Cardiac Issues, COPD, Diabetes, etc you may not be able to pass Underwriting in order to switch to a regular Plan G or Plan N in the future.
Most years you will probably save money with a High Deductible plan G, but is it worth rolling the dice. I think if you are Financially Secure, and have done a ggreat job of preparing for retirement, this may work well, but for the masses, I think a Medicare Supplement Plan G or a Plan N is a better fit.
IMPORTANT FACTS ABOUT HDG IN 2024
The High Deductible Plan G has a deductible of $2,800 in 2024.
Once the deductible is met, the High Deductible Plan G covers 100% of the cost of approved services.
The Part B annual deductible is included in the High Deductible plan.
ISN'T THERE ALSO A HIGH DEDUCTIBLE PLAN F?
For beneficiaries who became eligible for Medicare on or after January 1, 2020, a High Deductible Plan G option will be available. This plan will be like the High Deductible Plan F; however, it will not cover your Part B deductible. And, since historically PLan F is always more expensive than Plan G,I cannot say that a High Deductible Plan F is a better option than the High Deductible Plan G.
REMIND ME AGAIN ABOUT HOW A HIGH DEDUCIBLE PLAN G (HDG) WORKS
WIth a High Deductible Medicare Supplement Plan G, the best place to begin understanding coverage is with the original plan. Therefore, In this scenario, Medicare Supplement Plan G is the parent plan.
To sum it up, Plan G covers your whole portion of medical benefits that are left over after Original Medicare has paid its portion, except for the Part B deductible. Likewise, a High Deductible Plan G provides coverage the same way but only after you reach your annual deductible.
2024 MEDICARE SUPPLEMNT PALN COMPARISON CHART
IS THE PART B DEDUCTIBLE INCLUDED IN THE HDG?
The Part B deductible is included within the High Deductible plan’s deductible. Therefore, the enrollee would pay the first $240, then Medicare will pay 80% of Part B services, and the enrollee would pay the 20% until the remaining deductible amount is satisfied.However, there is one rare situation. If an enrollee satisfies the $2,800 deductible using only Part A services, they would still pay the $240 in full in addition to the $2,800 deductible. Medicare Part B would not pay their 80% cost-sharing until the $240 is satisfied. that is why, it’s important that you know how Medicare works and how much Medicare costs when you are considering enrollment in a High Deductible Plan G since you are responsible for the remaining balance until the high deductible is met.
WHAT HAPPENED TO MEDIGAP PLAN F?
When the Medicare Access and CHIP Reauthorization Act of 2015 (aka MACRA) was passed, making significant changes to Medigap plans as we know them. This legislation was designed to prohibit any Medigap plan from covering the Medicare Part B deductible (so the playing foeld was level for everyone), also referred to as first-dollar coverage.The part you need to know is that for those who are newly eligible for Medicare on or after January 1, 2020, Plans C and F (including the high deductible option) are no longer available. Unless, you were 65, prior to January 1, 2020.
IF YOU SWITCH CARRIERS IN THE MIDDLE OF THE YEAR, WILL ANY MONEY YOU HAVE PAID IN COUNT TOWARDS THE DEDUCTIBLE?
No. The deductible will reset when you switch to another carrier with the same High Deductible plan.
IS THERE ANY ADVICE WE WOULD OFFER TO SOMEONE CONSIDERING ANY HIGH DEDUCTIBLE MEDICARE SUPPLEMENT PLAN?
Yes, if you have enough money set aside for Medical expenses either from yoru Bank Account or a large balance in your HSA account, a HDG could be viable.
WHAT ARE PEOPLE SAYING WHO HAVE GONE THIS ROUTE?
I will say, the feedback we get from clients that go this route is that the lower premiums are often not worth the trouble. If you’re unsure which Plan G policy to go with, you can read reviews on Medicare Plan G to help. My best advice before enrolling in this plan is to do your homework and fully understand what you’re signing up for before you make your decision.