What Is Medicare Supplement Plan G? (2024)

When it’s time to choose a Medicare health insurance plan, typically at age 65, eligible adults can opt for Original Medicare (Plan A and Plan B), which is provided by the federal government, or purchase a Medicare Advantage plan from a private health insurance company. As of 2023, a little less than half of all eligible adults in the U.S. choose Original Medicare rather than a Medicare Advantage plan^[1]Medicare Advantage in 2023: Enrollment Update and Key Trends. Kaiser Family Foundation. Accessed 8/29/2023. .

Original Medicare includes Part A, which covers hospital stays, skilled nursing and some home health care, and Part B, which covers doctors services, outpatient care, medical supplies and preventative services. In 2023 Part B requires an annual deductible of $226, a monthly premium starting at $164.90, as well as copays and out-of-pocket expenses. To help cover out-of-pocket expenses, private health insurance companies offer 10 Medicare Supplement plans for customers to choose from based on their needs and anticipated expenses.

“If you go the Original Medicare route, you can pick from the different Medicare Supplement plans to cover everything after Medicare pays,” explains Sarah Murdoch, director of client services at Medicare Rights Center, a national nonprofit organization helping older adults navigate access to Medicare. “Typically, Medicare pays 80% of medical costs, and Medicare Supplement plans cover the other 20%.”

“Plan G is most popular because it’s the most comprehensive [Medicare Supplement plan],” says Murdoch. “You do pay a monthly premium for Plan G, but after you pay the Part B deductible, Plan G kicks in to pay remaining costs—copays, coinsurance and out-of-pocket expenses.”

Medicare Plan G may be helpful for people who have health problems or think they may develop certain health conditions due to family history. While it’s hard to predict what medical services a person may need in the future, Murdoch recommends considering Plan G for its affordable cost in the long term.

What Does Medicare Supplement Plan G Cover?

Plan G covers nearly all costs not covered by Original Medicare, including:

• Part A coinsurance and hospital costs up to an additional 365 days after a person uses all their Medicare benefits
• Part B copays and/or coinsurance
• The first three pints of blood (if needed)
• Part A hospice care coinsurance and/or copays
• Skilled nursing facility care coinsurance
• Part A deductible costs

Plan G doesn’t cover prescription drugs, though this coverage can be purchased separately with a Part D plan.

The monthly premium for Medicare Supplement Plan G varies depending on a person’s age, sex, whether they smoke and their location. For example, in Houston, Texas, in 2023, a 65-year-old man who doesn’t smoke might pay between $126 and $198 for a Plan G monthly premium, says Matt Gomez, an independent licensed insurance agent who works with a number of larger carriers. A 65-year-old non-smoking woman in the same locale may pay between $111 and $172 for a Plan G monthly premium, he says, adding that a household discount can lower the costs.

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When trying to determine if Plan G is an appropriate plan for one’s needs, Murdoch suggests considering the following questions:

• Is the plan’s premium cost within one’s monthly budget?
• How much health care does one anticipate needing now and in the future, and does the plan cover all these costs?
• Does enrolling in Plan G give one peace of mind that if they do become ill, their medical costs are largely covered?

The best time to purchase any Medicare Supplement plan is during the Medigap Open Enrollment Period, a six-month timeframe that begins the first day of the month a person turns 65 and signs up for Medicare Part B. However, there are factors that can influence this timeframe, such as if the person or their spouse plans to keep working after age 65 for an employer who provides health insurance. When the employer coverage ends, they have a chance to sign up for Part B without paying a penalty for late enrollment. Note: One can also enroll in a Part B plan while they still have employer coverage.

Medicare Supplement plans are available to purchase from a licensed insurance broker or directly from a private health insurance company. “We encourage people to reach out to their State Health Insurance Assistance Program, which are unbiased, nonprofit organizations,” says Murdoch. “They can offer advice and counseling on the Plan G options sold by health insurance companies in their area. Then they go online to that company’s website, navigate to the section on Medigap or Supplement plans, and follow the instructions to enroll in the Medigap coverage they want.”