Medicare high deductible plan G or regular plan G? (medical, hospital, doctor)

[lizrose]

My husband and I are deciding on a supplement to Medicare. We are both turning 65 soon and we are very undecided between a high deductible plan G or the regular plan G. We live in New Jersey and will probably go with AARP United HealthCare plan G or Amerihealth high deductible plan G. I am concerned about paying a lot of little bills as I get older if I choose the high deductible plan. I remember having to help my mother when she became elderly because she could no longer pay her bills on her own. On the other hand, the regular plan G premium seems like so much money to put out every month just to cover that 20% if we should need it. Any help would be appreciated!

[GWoodle]

Originally Posted by lizrose

My husband and I are deciding on a supplement to Medicare. We are both turning 65 soon and we are very undecided between a high deductible plan G or the regular plan G. We live in New Jersey and will probably go with AARP United HealthCare plan G or Amerihealth high deductible plan G. I am concerned about paying a lot of little bills as I get older if I choose the high deductible plan. I remember having to help my mother when she became elderly because she could no longer pay her bills on her own. On the other hand, the regular plan G premium seems like so much money to put out every month just to cover that 20% if we should need it. Any help would be appreciated!

IMHO one way to solve this problem is to look at your health issues. How often do you go to doctor & what would it cost? If you don't hit deductible now maybe use the low deductible plan. The higher premium covers that 20% when & if you need it. For comparison try a Plan F or a Plan N.

Otherwise have an emergency fund setup to cover that higher deductible. If you never use it, it still will be there for when & if something happens.

With either plan also determine what your Part D prescription drug needs are. Today costs may be low while you are healthy but when/if something happens you will be prepared for it. You may find a low premium plan for now then switch to something more comprehensive in another year.

[Roselvr]

Originally Posted by lizrose

My husband and I are deciding on a supplement to Medicare. We are both turning 65 soon and we are very undecided between a high deductible plan G or the regular plan G. We live in New Jersey and will probably go with AARP United HealthCare plan G or Amerihealth high deductible plan G. I am concerned about paying a lot of little bills as I get older if I choose the high deductible plan. I remember having to help my mother when she became elderly because she could no longer pay her bills on her own. On the other hand, the regular plan G premium seems like so much money to put out every month just to cover that 20% if we should need it. Any help would be appreciated!

Personally, I don't play around with not being insured enough. The $200 payment every month is worth it as long as someone can afford to pay it. My dad was always healthy until one day he wasn't. He started with diabetes, prostate issues then had terminal cancer, passing at 69. His medigap paid everything.

My hub will go with the AARP plan G, not the high deductible one. He has had cancer once. We were left with over $75k medical debt back then when he had an employer plan. Thankfully qualified for charity care.

I have a bad back. I'm on medicare but am not old enough for the G plan. I have a plan that costs me $125 a month, I pay the two hundred and whatever at the beginning of the year. I used to have a plan that covered everything, it cost me another hundred per month. I've been happy with both the C and D plans. I'm with BCBS because AARP doesn't cover my age group.

What is your health like? What about your family and hubs family? Are they generally healthy? Do you want to take your chances with the high deductible?

Originally Posted by GWoodle

IMHO one way to solve this problem is to look at your health issues. How often do you go to doctor & what would it cost? If you don't hit deductible now maybe use the low deductible plan. The higher premium covers that 20% when & if you need it. For comparison try a Plan F or a Plan N.

Otherwise have an emergency fund setup to cover that higher deductible. If you never use it, it still will be there for when & if something happens.

With either plan also determine what your Part D prescription drug needs are. Today costs may be low while you are healthy but when/if something happens you will be prepared for it. You may find a low premium plan for now then switch to something more comprehensive in another year.

F plan isn't available any more

[lizrose]

Thank you both for your responses! I keep thinking that the high deductible plan is not really a high deductible. It’s only the first two thousand and something that you pay, and then you are covered completely just like the regular Plan G. Don’t know if it’s worth the extra paperwork, though. I rarely go to the doctor but my husband has high blood pressure, has had two knee replacements, and had his gallbladder removed recently. Does anyone have the high g plan? And if you do, how is the paperwork and are you happy with the plan?

[JRR]

Originally Posted by lizrose

Thank you both for your responses! I keep thinking that the high deductible plan is not really a high deductible. It’s only the first two thousand and something that you pay, and then you are covered completely just like the regular Plan G. Don’t know if it’s worth the extra paperwork, though. I rarely go to the doctor but my husband has high blood pressure, has had two knee replacements, and had his gallbladder removed recently. Does anyone have the high g plan? And if you do, how is the paperwork and are you happy with the plan?

I've had a high deductible F plan for 6 years now and am very happy with it. Premium is $45 per month and has so far, increased $1 monthly every year.

As far as paperwork, pretty much every doctor/hospital I go to is set up online, so I just get an email that I owe Dr ABC some figure like $18.76 and I go in and pay it online. No big deal at all

[CharlieAllnut]

I have high deductible G and am very pleased with it, as are others on this site.

It really is just this (which is based on the low Medicare-approved reimbursement rates):

$233 annual deductible for office visits & outpatient services (same as in regular Plan G)
20% copay
$2,490 annual maximum out-of-pocket

(The exception is that if you are admitted to a hospital as an in-patient, you will have a $1,556 deductible for that, which counts toward the $2,490 annual maximum out of pocket.)

The CPA/MBA in me forced me to prepare a spreadsheet comparing high-deductible G and regular G, with differing assumptions on how often I would be hospitalized over the years (and have to pay the $1,556 Part A deductible) and varying assumptions on how much the 20% Part B coinsurance would be each year.

The numbers did really point toward the high deductible plan, especially since:

My insurer in my zip code has not raised rates on the high-deductible plan since they started offering high-deductible in my zip code over 15 years ago (I used high-deductible F as a proxy, as high-deductible F and G are the same policies); and

As crazy as it sounds, in my state most policies are attained age and the annual premium difference between Plan G and high-deductible G grows every year, until once you hit age 80, the premium difference exceeds the high-deductible amount.

In other words, once I reach age 80, if I hit the high-deductible plan’s deductible each and every year, I still come out ahead over a regular Plan G every year. Crazy.

Your concern about having to deal with bills once you get older is a valid one.

However, since my spreadsheets showed a savings of tens of thousands of dollars over the coming decades by having a high-deductible plan, I will figure out how to deal with it, if necessary. Meanwhile, my 98-year-old Mom is still paying all her bills herself.

Finally, you might want to work with one of the reputable Medigap insurance brokers that people here have been happy with, such as Medicare Nationwide or Boomer Benefits. They would have additional information on which insurers have had smaller premium increases over time. Their services have no cost to you, as their commission is paid by the insurance companies.

(By the way, I have not even hit this year’s $203 deductible, so I am ahead this year’s $1,400 premium savings).

[Ariadne22]

Originally Posted by lizrose

My husband and I are deciding on a supplement to Medicare. We are both turning 65 soon and we are very undecided between a high deductible plan G or the regular plan G. We live in New Jersey and will probably go with AARP United HealthCare plan G or Amerihealth high deductible plan G. I am concerned about paying a lot of little bills as I get older if I choose the high deductible plan. I remember having to help my mother when she became elderly because she could no longer pay her bills on her own. On the other hand, the regular plan G premium seems like so much money to put out every month just to cover that 20% if we should need it. Any help would be appreciated!

Over time, should you remain reasonably healthy, HD-G will save you tens of thousands of premium dollars. Consider it catastrophic insurance. It is there if you need it, providing all the protections and flexibility of a full Medigap at a fraction of the cost. You can always bank the premium difference for a few years to provide a cushion. The HD plans are a smart, cost-effective approach to Medigap coverage, imo.

Also, as Charlie mentioned, it is quite possible as you age, premiums for a full Medigap in your age group will exceed the deductible amount plus premium - which makes the HD-G doubly a no-brainer. This isn't true everywhere, but can easily be true in high-cost areas such as the Northeast, and even my state, WI.

I remember a poster a few years back, in her late 60's living in New York where premiums are high, who laughed at the absurdity of the premium for a full Medigap when the deductible for the HD-G plus premium were actually less. It happens. She was a cancer survivor. Had many good years, with a bad one here and there. Knew it would be unlikely she'd meet the deductible every year.

Originally Posted by lizrose

Don’t know if it’s worth the extra paperwork, though. I rarely go to the doctor but my husband has high blood pressure, has had two knee replacements, and had his gallbladder removed recently. Does anyone have the high g plan? And if you do, how is the paperwork and are you happy with the plan?

There is no extra paperwork. Medicare pays, Medicare/Medigap sends you a statement of what it has paid and your share, doc sends you bill, you pay it. Usually tiny amounts. Over time, the premium savings is well worth the effort.

Many here have an HD in addition to JRR and Charlie. Two who come to mind are oldcold and Mathjak. There are others.

[lizrose]

Thank you all for such detailed explanations! I appreciate your efforts. Seems like high deductible Plan g is the way to go. I’m wondering if anyone has had a negative experience with the high g plan?

[thatdurncat13]

I've got Plan G, not the HD. I pay $141 a month and have for the last 2 1/2 years. Think I used it maybe twice in that time.
I never get sick but, that can change on a dime.
I'm getting x-rays and an MRI today. And I'm back in PT. Guess that money will be used now.

[Roselvr]

Always appreciate the input from everyone.

Originally Posted by CharlieAllnut

I have high deductible G and am very pleased with it, as are others on this site.

It really is just this (which is based on the low Medicare-approved reimbursement rates):

$233 annual deductible for office visits & outpatient services (same as in regular Plan G)
20% copay
$2,490 annual maximum out-of-pocket

(The exception is that if you are admitted to a hospital as an in-patient, you will have a $1,556 deductible for that, which counts toward the $2,490 annual maximum out of pocket.)

The CPA/MBA in me forced me to prepare a spreadsheet comparing high-deductible G and regular G, with differing assumptions on how often I would be hospitalized over the years (and have to pay the $1,556 Part A deductible) and varying assumptions on how much the 20% Part B coinsurance would be each year.

The numbers did really point toward the high deductible plan, especially since:

My insurer in my zip code has not raised rates on the high-deductible plan since they started offering high-deductible in my zip code over 15 years ago (I used high-deductible F as a proxy, as high-deductible F and G are the same policies); and

As crazy as it sounds, in my state most policies are attained age and the annual premium difference between Plan G and high-deductible G grows every year, until once you hit age 80, the premium difference exceeds the high-deductible amount.

In other words, once I reach age 80, if I hit the high-deductible plan’s deductible each and every year, I still come out ahead over a regular Plan G every year. Crazy.

Your concern about having to deal with bills once you get older is a valid one.

However, since my spreadsheets showed a savings of tens of thousands of dollars over the coming decades by having a high-deductible plan, I will figure out how to deal with it, if necessary. Meanwhile, my 98-year-old Mom is still paying all her bills herself.

Finally, you might want to work with one of the reputable Medigap insurance brokers that people here have been happy with, such as Medicare Nationwide or Boomer Benefits. They would have additional information on which insurers have had smaller premium increases over time. Their services have no cost to you, as their commission is paid by the insurance companies.

(By the way, I have not even hit this year’s $203 deductible, so I am ahead this year’s $1,400 premium savings).

Thanks for all of the details Charlie. I thought I replied to you yesterday when I repped you, guess I got side tracked.

I want my hub to do the AARP plan G, now the G-HD is sounding good with the low monthly payment. When I originally decided, he only had Obama care, his employer hasn't offered insurance. He decided he's going to retire from his main job in the spring, because there's barely any work since COVID. He started doing his 2nd job full time. They do offer insurance with BCBS that has already started.

Since he has this change of retirement plans, I now have to do more research to make sure he still has to sign up with Medicare "at 65". He doesn't want to change insurance since the work insurance is cheaper than the medigap G. If he does have to start it when he turns 65, the AARP G-HD would be the one he'd have to go with for now, until his pension starts.

Originally Posted by Ariadne22

Over time, should you remain reasonably healthy, HD-G will save you tens of thousands of premium dollars. Consider it catastrophic insurance. It is there if you need it, providing all the protections and flexibility of a full Medigap at a fraction of the cost. You can always bank the premium difference for a few years to provide a cushion. The HD plans are a smart, cost-effective approach to Medigap coverage, imo.

Also, as Charlie mentioned, it is quite possible as you age, premiums for a full Medigap in your age group will exceed the deductible amount plus premium - which makes the HD-G doubly a no-brainer. This isn't true everywhere, but can easily be true in high-cost areas such as the Northeast, and even my state, WI.

I remember a poster a few years back, in her late 60's living in New York where premiums are high, who laughed at the absurdity of the premium for a full Medigap when the deductible for the HD-G plus premium were actually less. It happens. She was a cancer survivor. Had many good years, with a bad one here and there. Knew it would be unlikely she'd meet the deductible every year.

There is no extra paperwork. Medicare pays, Medicare/Medigap sends you a statement of what it has paid and your share, doc sends you bill, you pay it. Usually tiny amounts. Over time, the premium savings is well worth the effort.

Many here have an HD in addition to JRR and Charlie. Two who come to mind are oldcold and Mathjak. There are others.

Do you know how hard it would be to switch from an AARP G-HD plan to the AARP G? I assume he would have to do underwriting?

I'll be making a thread in a few weeks to get more specifics and decide exactly what he has to do in the next few months since he changed his retirement plans on me lol

Originally Posted by thatdurncat13

I've got Plan G, not the HD. I pay $141 a month and have for the last 2 1/2 years. Think I used it maybe twice in that time.
I never get sick but, that can change on a dime.
I'm getting x-rays and an MRI today. And I'm back in PT. Guess that money will be used now.

Who do you have your G plan with?