Is Medicare Plan G Worth It?

Is Medicare Plan G Worth It?

Medicare Plan G can be worth it for people who want predictable out-of-pocket costs and are willing to pay a higher monthly premium. It covers most of the gaps in Original Medicare, but whether it makes sense depends on your health, budget, and how often you see doctors.

What Medicare Plan G Covers

Plan G is a Medigap policy that fills most of the cost-sharing left by Part A and Part B. It covers the Part A deductible, hospital coinsurance, skilled nursing coinsurance, the Part B deductible, and 20 percent of Medicare-approved costs for doctor and outpatient services. The one major gap it leaves is the Part B annual deductible, which you pay before coverage begins.

Who Benefits Most From Plan G

Plan G tends to work best for people who visit doctors frequently or expect to need hospital care. Because the plan pays most out-of-pocket costs, you avoid surprise bills beyond the monthly premium. It can also be a good fit if you travel and want access to any Medicare-accepting provider nationwide without network restrictions.

Who Should Think Twice

• People in good health who rarely see a doctor
• Those on a tight monthly budget who prefer lower premiums
• Anyone who enrolled in Medicare before 2020, since Plan G will not cover the Part B deductible for new enrollees

Plan G vs Other Medigap Options

Plan G is often compared to Plan F, which also covers the Part B deductible. Plan F is no longer available to people who became eligible for Medicare on or after January 1, 2020. Plan G typically has a slightly lower premium than Plan F, making it the closest option for comprehensive coverage. Plan N is a lower-cost alternative, but it requires copays for doctor visits and emergency room care.

How to Decide if Plan G Is Worth It

To decide, compare the monthly premium against what you would pay under Original Medicare alone. Estimate your expected doctor visits, procedures, and hospital stays for the year. If the total cost-sharing you would face without Medigap exceeds the Plan G premium, it is likely worth the expense. Prices vary by state and insurer, so get quotes from several companies before choosing.