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Written byTaylor Milam-Samuel
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8+ years writing for major outlets, including MarketWatch and Business Insider
Master’s in Education
Taylor Mlam-Samuel is a personal finance writer and credentialed educator. When she’s not helping readers better save and spend money, she can be found teaching.
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Edited byAshley Cox
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7+ years in content creation and management
5+ years in insurance and personal finance content
Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
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Updated June 12, 2024
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Table of contents
Medicare Plan G is a supplemental insurance plan for patients with Original Medicare. The plan covers almost all out-of-pocket expenses for Medicare patients.
Original Medicare offers the most basic coverage, which includes Part A and Part B. Part A provides hospital insurance, while Part B provides medical insurance. Plan G is an add-on policy that pays for all deductibles and co-insurance amounts except the Part B deductible.[1]
Medicare Plan G is one of the most popular and comprehensive Medicare plans. It’s also one of the most expensive. Here’s how Plan G works and how to figure out if it’s worth the extra cost.
What is Medicare supplement Plan G?
Medicare Supplemental Plan G is only available for patients with Original Medicare. It covers all deductibles and co-insurance amounts except the Part B deductible.[2]
Even though most people use “Medicare” as a catchall phrase for health insurance coverage, the truth is coverage varies depending on your plan and supplemental policies. Most Medicare patients choose between Original Medicare and Medicare Advantage (MA).
Original Medicare, which includes Part A and Part B, offers comprehensive coverage. It provides inpatient care, skilled nursing facilities, hospice and at-home care, outpatient care, appointments, preventative screenings, and medical equipment. You’re responsible for paying the deductible, co-insurance, and copayments.
Medicare Advantage, also known as Part C, is an alternative to Original Medicare. It includes Part A, Part B, and Part D, which covers drugs and prescriptions. Some plans include additional benefits like vision, hearing, and dental coverage. But you’re still responsible for deductible payments, co-insurance, and copayments. You can’t add Plan G if you have Medicare Advantage.
If you choose Original Medicare, you can consider a supplemental Medigap policy, such as Plan G. You can purchase Medicare supplement plans from a private health insurance company to help pay for out-of-pocket Medicare expenses. Medigap plans reduce the cost of care but don’t provide additional medical coverage.[3]
Important Information
Various Medigap policies are available, including Plan G, Plan F, Plan K, and Plan L. You can work with an insurance agent to add coverage during the Medigap open enrollment period, which is the first six months after the first month in which you start Medicare. Medigap policies might cost more after that period, or you might not be able to buy one.[4]
What Medicare Plan G covers
Medicare Plan G covers your deductibles and co-insurance amounts, except the Part B deductible. Plan G provides the following benefits that don’t come with Original Medicare:
Skilled nursing facility care co-insurance
Part A deductible
Part B excess charge, which is the amount the provider can charge over the Medicare-approved amount
Foreign travel emergency, up to 80%
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Read More: When Does Medicare Coverage Start?
What Plan G won’t cover
Plan G provides additional coverage for out-of-pocket expenses, but there are limits to what the plan covers. Plan G doesn’t cover the following out-of-pocket costs:
Part B deductible
Dental care
Hearing aids
Long-term care
Prescription drugs
Vision care
Plan G also doesn’t provide an out-of-pocket maximum. Because of that, there’s no limit on how much you can pay each year. But other supplemental plans, like Plan K and Plan L, have out-of-pocket maximums.
How Medicare Plan G works
Plan G is one of the most comprehensive supplemental Medicare plans. Once you pay the Part B deductible — $240 in 2024 — Plan G pays the remaining costs, including copays, co-insurance, and other out-of-pocket expenses.[5]
Patients with Plan G coverage can expect to pay $240 for the Part B deductible since it’s not covered. Patients will also need to pay for their monthly premiums, prescription drugs, dental care, and vision care. But Plan G covers the copays, deductibles, and co-insurance for other medical care.
Good to Know
Plan G helps save on medical care expenses. For example, the Medicare Part A inpatient hospital deductible is $1,632 in 2024 for the first 60 days of hospitalization, and Plan G covers that cost. Medicare patients can also choose a high-deductible Plan G. It offers the same coverage, but it only kicks in once you meet your deductible for the year.[6]
How much Medicare Plan G costs
The cost of Medicare Plan G coverage depends on your age, gender, overall health, and the private insurance company you use.
For example, the cost of Plan G coverage for a 66-year-old non-smoking man in Los Angeles is $145–$269 per month. But a 70-year-old non-smoking woman in St. Louis might pay $170–$462 per month.
Insurance companies charge different amounts, which is why prices can fluctuate so much. Comparing prices from multiple insurance companies could potentially save you hundreds of dollars.
Pros and cons of Medicare Plan G
Medicare Plan G might be a great fit for some people, but it doesn’t always make sense. Here are some benefits and drawbacks to consider.
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Pros
Comprehensive coverage: Plan G is the supplemental plan with the most extensive coverage. If you want to minimize out-of-pocket charges throughout the year, Plan G might be a great fit.
Easy access: Most insurance companies offer supplemental Plan G coverage. It’s easy to compare prices and find a policy.
Coverage for excess charges: Plan G is the only supplemental insurance that covers excess charges from non-Medicare providers. Since most providers accept Medicare, you’d rarely use it, but it’s nice to know you have coverage.
Cons
Extra expense: Medicare users with Plan G must pay an additional insurance premium, which can range anywhere from $85–$1,507 per month. It’s a substantial expense that doesn’t make financial sense for everyone.
Cheaper options available: Different supplemental plans might offer similar coverage options at a lower price.
Prices increase with age: The price for Plan G is lower if you’re younger. But if you begin coverage later in life, you can expect to pay more.
Comparing Medicare Plan G to other Medicare options
Thanks to confusing medical lingo and various options, understanding Medicare coverage can be challenging. But once you review the different plans, it becomes easier to find the right fit.
Here’s how Medicare Plan G compares to other Medicare supplement insurance plans.
Plan G vs. Plan N
The primary difference between Plan G and Plan N is that Plan N requires additional copays for medical office and emergency room visits. The trade-off for less coverage is that Plan N typically costs less than Plan G.
Plan G vs. Plan F
Plan F is nearly the same as Plan G but also covers the Medicare Part B deductible. But here’s the catch: Plan F is no longer available if you turn age 65 on or after Jan. 1, 2020. Because of that, Plan G is typically the only option for most people deciding between the two.
Original Medicare vs. Medicare Advantage
Original Medicare includes Part A and Part B, which cover hospital and medical insurance. Medicare Advantage plans include Parts A, B, and D, which provide extra coverage for drugs and prescriptions. An MA plan might also include vision, hearing, and dental coverage. Plan G isn’t available for people who have Medicare Advantage.
Medicare Plan G FAQs
Selecting Medicare coverage is a big decision. Here’s some additional information that may help you decide which plan is right for you.
What are the four parts of Medicare?
The federal government manages the Medicare program, and it has four parts: Part A, Part B, Part C, and Part D.
The first two parts — Part A and Part B — are Original Medicare, which includes hospital and medical insurance. Part D includes prescription drug coverage. Part C, also known as Medicare Advantage, includes coverage for Part A, Part B, and Part D.
Do you need more coverage than Medicare Part A and B?
Known as Original Medicare, Parts A and B include hospital and medical insurance. If you have Part A and Part B, you have full coverage.
You can add extra coverage for prescription drugs with Part D. You can also add a supplemental plan to offset some out-of-pocket costs.
What is Medigap, and do you need it?
Medigap plans are supplemental insurance policies that help pay for “gaps” in Medicare coverage. The plans help cover some out-of-pocket costs for deductibles, co-insurance, and copays. You aren’t required to have a Medigap plan, but it might help you save money over time.
Is Medicare Plan G worth it?
It depends. Medicare Plan G might be worth it if you require frequent or regular hospitalizations or skilled nursing care. Adding coverage for Plan G as soon as you’re able can help you save money. If you don’t have coverage, the cost to begin coverage increases with age.
Who should buy Medicare Plan G?
Medicare Plan G is a solid choice for people who want to minimize unexpected out-of-pocket costs. Plan G covers almost all deductibles, co-insurance, and copays, so you won’t have surprise medical bills throughout the year.
Sources
- Medicare.gov. "Parts of Medicare."
- Medicare.gov. "Compare Medigap Plan Benefits."
- Medicare.gov. "Get Medigap Basics."
- Medicare.gov. "Get ready to buy."
- Centers for Medicare & Medicaid Services. "2024 Medicare Parts A & B Premiums and Deductibles."
- Centers for Medicare & Medicaid Services. "F, G & J Deductible Announcements."
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Taylor Milam-Samuel
Taylor Milam-Samuel is a writer and credentialed educator who is fascinated by how people earn, save, and spend their money. When she's not researching financial terms and conditions, she can be found in the classroom teaching.
Taylor has been a contributor at Insurify since February 2023.
7+ years in content creation and management
5+ years in insurance and personal finance content
Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
Featured in