What Will Medicare Plan G Cost You in 2022? – Whether you are retiring or will be new to Medicare in 2022, you are likely trying to get an estimate on what your costs will be. Well, that will all depend on the plan you choose. You can decide to go the Medicare Supplement route or the Medicare Advantage plan route. Your premium costs will vary significantly between the two options because they depend on the specific plan.
Medicare Supplement Plan G is the most popular Supplement plan in 2022. If you prefer the flexibility of choosing your providers and having little out-of-pocket costs, this plan may be the right plan for your needs.
What is a Medigap Plan G?
First, you may be wondering what a Medigap Plan G is. Plan G is one of the ten standardized Medigap plans, also called Medicare Supplement plans. Private insurance companies sell Medigap plans, and the coverage varies with each plan. However, the plans are standardized, which means one Plan G will provide the same benefits as another Plan G. You must be enrolled in Part A and Part B to enroll in a Medigap Plan G policy, and you must keep paying the Part B premium. For more details on Plan G and how it can save you money, visit this link: boomerbenefits.com/medicare-supplemental-insurance/medicare-supplement-plans/medicare-plan-g.
The difference between Plan G policies is the monthly premium. The insurance company will set the premium how they see fit. Additionally, Medigap plans will experience premium increases each year, and the increases will vary with each insurance carrier.
Medigap Plan G Premiums
Plan G premiums are based on several factors, including zip code, age, gender, and tobacco use. This means your premium can be significantly different from someone in another state ten years older than you.
Each Medigap Plan G policy has a specific rate type that affects how the premium increases each year. They will either be community-rated, attained-age, or issue-age. Some states may only offer one kind of rate type, while others have all three.
Community-rated policies charge the same premium to those who enrol in the policy in that specific area. The premium does not increase due to age but will increase due to inflation and other factors.
Attained-age policies will increase as you age. Each year you get older, you will experience an increase. Additionally, they increase due to inflation and other factors. You may think this means they will have high increases. However, that may not necessarily be the case. Typically, the age increase can be relatively insignificant.
The premiums for issue-age policies are based on the age you are when you enrol. Therefore, someone at age 65 will have a lower premium than someone who is 75 and enrolling in a Medigap Plan G. They do not increase each you get older, but instead, they will increase due to inflation and other factors.
It is important to remember that all Medigap policies will have increased. They are inevitable, and you don’t need to focus entirely on rate type. Instead, look more at the carrier and their increased history for their policy.
Can You Be Rated Up When You Apply?
Everyone has a one-time Medigap Open Enrollment window. The window is based on your Part B effective date. When you apply within six months of your Part B effective date, you do not have to answer health questions and cannot be rated up based on current or past health conditions.
However, you may need to answer health questions when you apply outside of that window. The carrier could rate you up to a higher premium if you have certain health conditions, or you could be denied coverage entirely. It all depends on the carrier and what pre-existing conditions you have.
What Are Your Potential Out of Pocket Costs with Plan G?
Medigap plans are designed to help cover the gaps in Medicare. This means Medigap plans will help cover deductibles, coinsurance, and copays for you. Plan G, in particular, is one of the more comprehensive Medicare Supplement plans. You must satisfy the Part B annual deductible, which is $233 in 2022. Plan G will cover all approved hospital and medical costs after you meet the deductible.
What About Part D?
You will want to keep in mind that you will need a Part D plan for drug coverage if you don’t have creditable coverage. The Part D plan will have an additional premium, and you will have cost-sharing for your drugs. When you estimate your annual costs with Medicare and Plan G, you will want to include an estimate on drug costs.
Your Plan G costs can differ from someone you know because the premiums vary due to several factors. You can contact a Medicare broker to get accurate quotes and find which carriers are the most cost-effective for you in your area.