What Is A High-Deductible Medicare Supplement Plan?

Once you turn 65 and are eligible for Medicare, you might think that you no longer have a choice about your healthcare plan. But that isn’t the case! After you enroll in Medicare, you have the option to purchase a Medicare Supplement Plan to cover the out-of-pocket expenses that Original Medicare does not. There are multiple types of Medicare Supplement Plans to choose from, so you are sure to find one that suits your needs; there is even a high-deductible plan, known as High-deductible Medicare Plan Part G. This plan might be right for you if you’re looking for a little extra coverage with a lower premium, but you need to understand how this plan differs from other plans before you make your decision. 

How Does A Medicare Supplement Plan Work?

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Medicare Supplement Plans will cover medical expenses that Original Medicare does not cover.

First, let’s cover the basics of how Medicare Supplement Plans work. Essentially, these plans will help fill the gap of expenses that Medicare does not cover. For example, Medicare Part B requires that you pay a coinsurance, meaning that Medicare will only cover 80% of the cost of an approved medical expense, and you will have to pay the remaining 20%. Most Medicare Supplement Plans will cover this 20%.

Like private insurance, you pay a monthly premium for a Medicare Supplement Plan, and in return, your medical expenses will be covered by the plan. In most states, there are up to 10 different plans, each with their own level of coverage and price points. Each is categorized by a letter, labeled A through N. Among these plans is one High-deductible Medicare Supplement Plan: High-deductible Medicare Supplement Plan G. The other, High-deductible Medicare Supplement Plan F, was semi-retired in 2020 (people who turned 65 before January 1, 2020 still have the option to get and keep this plan).

How A High-Deductible Medicare Supplement Plan Works

Medicare Supplement Plans will cover medical expenses after Medicare pays its portion of covered expenses. With a high-deductible plan, you will have to meet the plan’s annual deductible before it will help pay your Medicare out-of-pocket expenses. As mentioned above, there is currently just one high-deductible plan, which is High-deductible Medicare Supplement Plan G. What separates this plan from other Medicare Supplement Plans is that it covers more than other plans. Not only is it the only plan (aside from F) to cover Part B excess charges, it also covers:

  • 100% of Medicare Part A coinsurance
  • 100% of Medicare Part B coinsurance or copayments
  • Blood transfusion (the first 3 pints)
  • 100% of Part A Hospice care coinsurance or copayment
  • 100% of Skilled Nursing Facility care coinsurance
  • 100% of Part A deductible
  • 100% of Part B excess charges
  • 80% of Foreign travel emergency

The plan will cover all of the above after you meet your annual deductible, which is $2,370 in 2021. 

Should You Consider A High-Deductible Medicare Supplement Plan?money bags with money signs on them, one green and the others tan colored

High-deductible Medicare Supplement Plans are a good choice for people who want to save money, because they have low monthly premiums. Remember, though, the low monthly premiums are a trade-off for the high deductible that you must first meet before the plan begins covering your expenses. It all depends on whether you want to pay higher monthly premiums and not have to worry about out-of-pocket costs throughout the year, or pay low monthly premiums but first have to meet your deductible before the plan pays out.

How EZ Can Help

Medicare Supplement Plans are a great option for saving money, especially if you live on a fixed income. Because there are a number of different Medicare Supplement Plans, comparing all of them to see which one fits your needs can be time consuming and frustrating. Don’t worry – EZ is here to help! Our agents work with the top-rated insurance companies in the nation and can compare all available plans in your area in minutes, for free. We will discuss your medical needs and find the plan that is right for you. If you are interested in a High-deductible Medicare Supplement Plan, we will discuss your options and determine if it is a good fit for you. To get free quotes, simply enter your zip code in the bar above, or to speak with an agent, call 888-753-7207. No obligation or hassle.

About The Author: Cassandra Love

With over a decade of helpful content experience Cassandra has dedicated her career to making sure people have access to relevant, easy to understand, and valuable information. After realizing a huge knowledge gap Cassandra spent years researching and working with health insurance companies to create accessible guides and articles to walk anyone through every aspect of the insurance process.
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