In this blog, I’m going to talk about the top Medicare supplement plans for 2023. If this is your first time on our site, welcome! We have a great community here.
Top 3 Medigap plans
Let’s dive into the Top three plans. Plan G, Plan N and Plan High Deductible G will be the top three plans in 2023. The reason for that is because they were the top three for 2022 and not much has changed for Medicare. So, if you’re turning 65, this is something that you really want to look into. If you’re looking to change your Medicare Plan, you will want to read this blog in its because there’s a lot of information that I’m going to cover that you will find very helpful!
First, let’s look at the premiums for 65 year olds (what you will pay each month) for each plan. These numbers are based on the average of premiums throughout the country. Now if you’re 70 or 75 don’t worry. I’m going to go over these numbers too.
The first plan I am going to go over is the Gap Plan G. Remember that the terms Medicare supplement, Medigap, and GAP plan that term are interchangeable. These terms refer to the same exact thing. For Plan G, the average premium is going to be $140 per month for someone who’s 65 years old and average premium for 75 year olds is about $120 more per month. So the average yearly cost for 65 year olds for a Gap Plan G is $1680 ($140 X 12 months). One other cost that you will have to pay is your part B deductible of $226. Now don’t focus on part B. It’s just a deductible. Most likely you’re going to end up paying this. The average total cost for the year for 65 year olds for a Gap Plan G is $1906 ($1680 + $226). If your premiums are paid and your deductible of $226 is met, you will not have to pay any additional costs for the remainder of the year. No questions asked!
What is actually covered? If you have a Gap Plan G and have the deductible of $226, you receive hospital coverage, outpatient, inpatient, if you stay overnight, if you have a surgery, doctor visits at zero cost. You will pay nothing for specialists, nothing for ambulances, nothing for outpatient centers. Zero. If you have an MRI, CAT scan, pet scan, you will pay zero. If you go into a Skilled Nursing Facility up to a hundred days you will pay zero. This plan is absolutely fantastic! People love it. But stay with me, I am also going to go over the other two plans so you can decide which plan is the best option for you.
I already said the average total cost for the year is $1906 – this is the max–out-of-pocket cost for the year (MOOP) based on a monthly premium of $140. So if you are older than 65, let’s say you’re 75, and your monthly premium is $240, your total cost for the year (max out of pocket), will be $240 X 12 = $2,880 + the $226 deductible = $3,120. That’s the plan G. It’s very clean. You pay your premium plus the $226 deductible and you are done. You pay nothing else for the medical services I mentioned above.
So now for Plan N – how is it different from Plan G? The monthly premium is less expensive – an average of $106 a month for 65 year olds. For the year, the amount paid in premiums is $1272. Add the $226 deductible and total cost for the year begins with $1,498. But unlike Plan G, with Plan N, you will have to pay copays every time you visit the doctor (up to $20 each visit). So if you go to the doctor 10 times in a year, you will need to add $200 to your beginning cost of $1,498 which equals $1,698.
If you say, “Hey! I never go to the doctors!” Well then your total cost for the year will be $1498. And you’ll have the same benefits as the Plan G for hospital inpatient care – that is the cost for these services will be zero. So other than the copays, you will also need to consider two other things about Plan N. One is that you will have to pay $50 to go to the emergency room unless you are admitted (then this fee is waived). You MAY also have to pay an excess charge for a doctor’s visit.
The excess charge sounds tricky but it’s actually not a big thing. An excess charge is something a doctor can add to your cost if they do not accept Medicare’s allotted amount for payment which can equal up to 15% on top of what they would normally charge you. Keep this in mind, less than three percent of the doctors in the US make you pay an excess charge. I have hundreds of clients on Plan N, and I’ve never had anyone call me and say,”This excess charge is killing me!” or, “I was charged an excess charge!”
Let me give an example. If a doctor charges $100 for a visit, Medicare is going to take care of their 80 percent and pay the doctor $80, and then you will pay $20. If a doctor applies an excess charge, it will be up to 15% of $20 (an additional $3). So it’s not that much but It’s just something I have to tell you about.
Medicare Plan G – High Deductible
The Medigap plan High Deductible G. Why are people talking about this plan? The average monthly premium for $65 year olds is $40, about $100 less than with Plan G. Now, some people will say, “Well it’s a no-brainer. “Why would I get the G Plan if the High Deductible G is less expensive?” Because you have to consider $2,700 a year deductible. For the High Deductible G plan, the average yearly cost for premiums is $480 ($40 X 12 months). The amount you pay after Medicare covers its part (your copay of up to will go towards your deductible. Then you add $2,700 in case you maxed out the deductible. Now keep in mind the deductible is only for your part that you have to pay.
For example, if you went to the doctor and the visit cost $100, Medicare would pay eighty percent of ($80) and you would pay the additional $20. This is the amount that would go toward your deductible. If you go to the hospital and the total cost is $1,000, Medicare will cover 80% ($800) and you would pay the remaining $200. This amount will also go toward your deductible. Once you meet your deductible of $2,700, you will not pay any additional costs just like with Plan G.
This is how people make their decisions. Many people like the High Deductible G plan because it’s kind of in the middle of Plan G and Plan N. Let’s just say you meet only $1,000 of the deductible (what you paid out of pocket), well your total cost for the year is $480 (your annual premium) + $1,000 which equals $1,480. This amount is less expensive than the yearly cost of Plan G. With Plan N, you will need to pay copays of up to $20 for doctor’s visits with no max out of pocket for the year. With the High Deductible G, your max out of pocket is $2,700. Now is that deductible going to go up? Of course it possibly can, and the premium might increase too but from what I’ve seen it tends to be a lot on the lower side.
What else do you need to consider if you decide to go with a Medigap plan (G, N, or High Deductible G?) You will still have to pay Medicare Part B which is going to be about $164 a month in addition to the premiums of your Medigap Plan. Medicare pays about 80% of your medical costs while a Medigap plan covers the remaining 20% (after deductibles are met).
With a Medigap plan, you’ll have to get a separate drug plan, and a separate vision, dental and hearing plan. Drug plans typically cost between $5 to $40 a month, sometimes more. You will choose your drug plan based on the medications that you are taking. You can watch my video that helps you with choosing a drug plan – please click here. It’s 15 minutes long but I go step by step very slowly going through how to look up your drugs to get the best drug plan and you can do this yourself. It’s very easy. You can then pick up a vision, dental, and hearing plan if you want, and that is usually around $50 per month.
Let’s summarize your steps. Let’s just say you go with Plan G. You’ll pay $140 times 12 for the year(average for 65 year olds) plus the $226 deductible. This amount will be your max out of pocket.
Next thing, you will have to get your drug plan. There’s probably about 30 different drug plans in
your area to choose from. You get to pick that. You can look at my video of course. We help people with
their drug plans also and then you’ll choose a dental, vision and hearing plan and that will be it.
If you have any questions about Plan G, Plan N, or High Deductible G, please you call my office.
Disclaimer: This video and blog post are for entertainment purposes only. If you want advice on Medicare or any of its plans, please speak to a licensed agent, whether it is me or another licensed agent. No advice should be taken from this video or blog post. If you don’t speak to me about your individual concerns, I can’t give you my 100% opinion. Brian Monahan and Medicare 365 are not responsible for any actions that you take without consulting with a licensed insurance agent.
