Annual Deductible Amount Explanation
A deductible is an amount that beneficiaries are obligated to pay out-of-pocket annually before their coverage kicks in 100%. In 2023, the cost of the deductible is 2700$. You have to pay this before your policy becomes effective, and you start to get your coverage. Because you have higher costs at the beginning, which includes Part B deductible too, you will pay less for your monthly premium. A monthly premium is an amount that you have to pay whatsoever to keep your policy active. The average cost for it can range from 40$ to 90$ a month. This can be a great choice for beneficiaries that wouldn’t mind paying a higher deductible to keep their premiums low.
However, not every company offers high-deductible versions, so check before you are deciding to purchase it.
High Deductible Plan G Benefits
After you meet your deductible you will get the same benefits as regular plan G as follows:
- Medicare Part A coinsurance costs of hospital stay up to 365 days after benefits are used
- Medicare Part B coinsurance or copay
- Part A hospice care coinsurance or copay
- skilled nursing facility care coinsurance
- Medicare Part A deductible (1600$ in 2023)
- Medicare Part B excess charges
- Medicare preventive care coinsurance
- foreign travel emergencies
- first three prints of blood
The only thing that is not covered in the Part B deductible amount is included in your 2700$ that you need to pay upfront.
High Deductible Plan G Eligibility
Every beneficiary who is eligible for Original Medicare coverage and their part B effective date started is eligible for this version of Plan G. This plan is the second most comprehensive plan on the market but a first plan that has the most amount of coverage for new Medicare beneficiaries. The only plan that provides more benefits is plan F but it is no longer available for those who weren’t eligible prior to 1st 2020, nor is its high-deductible version.
The best time to apply is during Medigap Open Enrollment Period which is a six-month window and begins when your Part B becomes effective. If you enroll during this time you have guaranteed issue rights which means that you cannot be turned down based on pre-existing health conditions.