The Medicare Supplement Plan G is known for having a relatively low out of pocket, but the deductible has increased $30 annually.
NEW YORK CITY, NEW YORK, UNITED STATES, November 19, 2021 /EINPresswire.com/ — Medigap plans have gone through many changes since their inception. There have now been multiple standardizations from the National Association of Insurance Commissioners, laws like the Medicare Access and CHIP Reauthorization Act of 2015 (MACRA) that changed standardized plan availability, and even the rapid evolution of Medicare Advantage that competes with Medigap plans. One thing has proved to be true through all of these changes, and that is Plan G became the "Greatest Value" plan for flooring approach retirement styles in those people who have decided to take the more conservative or secure approaches to retirement and healthcare.
MACRA put into motion a phasing out of Medigap availability that eventually made Plans F and C not an option for new Medicare beneficiaries. This made Medigap Plan G a massively popular option for newer Medicare beneficiaries. The plan pays all Part A and B Medicare expenses with the exception of the Medicare Part B deductible. So, in 2021, that deductible was $203 per calendar year. While this deductible may seem small, many of the people having to deal with that out of pocket expense are on extremely limited incomes already.
A couple of months ago the 2022 Medicare premiums and out of pocket cost estimates were released, but unfortunately for people paying attention to them, they were very wrong. Last week the official numbers came out, and outlets all over reported on the Part B premium increase of 14.5% (the highest dollar increase in the history of Medicare). Interestingly, almost no one put any relevance on the Part B deductible (The deductible that Medigap Plan G policyholders have to pay) going up $30 a year. This was also one of the higher Part B deductible increases of all time, and will be one small indicator pushing people towards lower cost Medigap Plans like Medigap Plan N or Medicare Advantage plans (preferably with Part B givebacks).
Medicare is extremely confusing, and the cost parameters being so unpredictable each year makes it so much more difficult for beneficiaries. Medigap Plan G is the top dog Medigap plan right now, but Medigap Plan N and Medicare Advantage are both rising in popularity at the expense of Medigap Plan G enrollment.
Medigap Plan G Explained
Source: EIN Presswire