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I have to make a decision soon regarding Medicare Supplement. I am dithering between High Deductible Plan G and Plan G.
This is the data that is confusing me:
1. The High Deductible Plan G deductibles have been as follows: 2020 $2,340, 2021 $2,370, 2022 $2,490, 2023 $2,700 and 2024 $2,800. It seems to increase in step with the CPI and has increased 19.6% since 2020.
2. I've spoken to a very helpful person at AARP United Heathcare. I asked her to give me the monthly premium for Plan G based upon if at this moment I was age: 65 $135.20, 70 $145.04, 75 $169.62, 80 $194.20 and 85 $270.41.
3. I've spoken to an insurance agent and was told HD Plan G would be about $45 per month
Here is my thinking: If I am 65 at this moment and paying $135.20 per month for Plan G over the course of the year, I would be paying $1,622.40 for my health insurance (excluding Medicare deductible of $240 and which I am not bothering to include) and medical expenses. On the HD Plan G I would be paying $45 per month ($540 annual) and would have a cap of $2,800. If my math is right, that means I would need $14,000 of medical bills paying my 20% share to cap out at $2,800 deductible. The difference between the annual premium for HD Plan G and Plan G is $1,082. I would need medical expenses of $5,410 paying my 20% share to reach $1,082.
The fly in the ointment is that I don't know what medical tests costs. So, if I went to see specialists (endocrinologist, dermatologist, cardiologist) say a total of 6 visits in a year, had a Dexa test and an Echo do you think I would come close to incurring $5,400 of fees?
When I pretend that I am currently 85 years old at this moment, I would be paying $3,245 for Plan G, but the deductible for HD Plan G is only $2,800. I'm not seeing how it benefits me to be paying for Plan G in this case, even if the High Deductible Plan G increases to more than $45 per month. And when I look at the deductible increasing 20% in 4 years but the premium doubling by age 85, that is of concern.
However, despite all of this playing with math, the insurance brokers are telling me that it is a mistake to pick the High Deductible G because when I am older the deductible may become unaffordable. This neglects to take into account that the premium for Plan G may also become unaffordable.
Does anyone who has chosen High Deductible G regret the decision? What is your age? How is your health?
Does anyone see mistakes in my math or my logic?
Thank you for being my sounding board and helping me to finally make a choice.
I chose Plan G and while if you can avoid medical problems the odds are that as you age you will need more medical care and tests. I sleep better knowing that I am completely covered.
The question is do you have sufficient income to be able to afford the Plan G premiums now, as well as being able to afford the future premium increases (which will likely outpace the rate of inflation)? Also, factor-in your current health status, as well as your family history. Any chronic conditions that would likely require costly ongoing care in the future? If so, then Plan G may end up being the better choice.
G-HD can actually end up being a net savings for the majority as they age. Premium increases historically are lower both in terms of percentage and actual dollars than regular G. While they may incur higher out-of-pocket copays with G-HD as they age and become in need of more medical services, they likely realized a savings in their earlier years. Considering that Medicare allowable charges typically are much lower than providers list prices, it takes some pretty serious medical needs to hit the HD-G deductible (which is really a max out-of-pocket) in a given year.
Yes, agents and brokers will often try to steer enrollees away from HD Supplements. But keep in mind, the HD plans pay them the lowest commissions.
We bought HD-G through United American, premiums are $28 & $30 for my husband and I. We'd rather have the lower premium and can handle the extra deductible if we ever have a heavy medical year that triggers it.
Why have you settled on G? I can’t answer your specific question about G, but my husband and I have had N with Aetna, for several years now…..through many expensive surgeries, and besides the annual Medicare deductible, we get a bill eventually for a $20. copay, but no other charges. We pay about $100. each, but it’s been worth it for us.
I have G, 6 years ago it was 125.00 a month plus Part B. Now it's 176.00 and by the end of the year 195.00. Plus Part B. I can't afford those high deductible plans, as I only go to the dr a couple times a year, I've had rotator cuff surgery, colonoscopy and cost me nothing because I had already paid my deductible. Just the monthly premium. AARP, United health Care.
Oh gentlearts I need to look at N. I don't even know what the part B is right now. But it still has paid off in spades, with the surgery and Tests.
I have G, 6 years ago it was 125.00 a month plus Part B. Now it's 176.00 and by the end of the year 195.00. Plus Part B. I can't afford those high deductible plans, as I only go to the dr a couple times a year, I've had rotator cuff surgery, colonoscopy and cost me nothing because I had already paid my deductible. Just the monthly premium. AARP, United health Care.
Actually you can afford the HD plan, and would save money. Sounds like you misunderstand how high deductible plans work.
Under the HD plan, Medicare pays its 80% after you pay the $240 Part B deductible, thereafter you only pay 20% of Medicare allowed charge for any procedure, not to exceed $2,800 deductible. The $240 counts towards satisfaction of $2,800, which means worst case IF you needed a lot of medical care, your costs under HD would be $2,800, plus premium for HD, at your age of 71/72 probably $600/year, or an annual total of $3,400.
Currently, you are paying $2,340 plus $240 Part B deductible, for a total of $2,590.
However, you, like most people, only see the doctor a few times a year. Which means, under the HD plan, for the colonoscopy, tests, etc., you would pay the plan premium of $600/year, the $240 Part B deductible, and any 20% copays - let's say those copays amount to $800 which is a lot in a normal year - for a total cost under the HD of $1,640 - versus the $2,590 you are currently paying.
Under the HD plan you would save $950/year. Adding in the Medicare-allowed fee for rotator cuff surgery - which was a one-off and not an annual occurrence - and your 20% share of about $850 for that surgery (https://www.google.com/search?q=medi...t=firefox-b-10), you break even.
Also as you age and Medigap premiums increase, even though the HD deductible also increases, the Medigap premium will increase even more, increasing the differential.
Many people here, including me, have the HD plan - and its ranks are growing as people discover the HD plan is a very cost-effective vehicle for complete Medicare coverage without the high price. In my opinion, the HD plans are the best kept secret in the Medicare coverage world.
Yes, there may be the occasional bad year when the deductible is met. But, for most people, the experience will be that their out-of-pockets for Medicare allowed charges, rarely come close to meeting the deductible.
At 82, my premium for the HD plan through United American is $848/year - a far cry from the over $3,000 I'd be paying in WI for a regular Medigap G. I almost never doctor, so this is CYA insurance should the worst happen. Over the next ten years, it's quite possible I will have saved close to $20,000 in premiums not paid. I can always handle a $3k deductible should the worst happen.
If you worry about that deductible, instead bank the premium/costs differentials. Then you'll have a sinking fund available to draw on for the occasional bad year.
I have to make a decision soon regarding Medicare Supplement. I am dithering between High Deductible Plan G and Plan G.
This is the data that is confusing me:
1. The High Deductible Plan G deductibles have been as follows: 2020 $2,340, 2021 $2,370, 2022 $2,490, 2023 $2,700 and 2024 $2,800. It seems to increase in step with the CPI and has increased 19.6% since 2020.
2. I've spoken to a very helpful person at AARP United Heathcare. I asked her to give me the monthly premium for Plan G based upon if at this moment I was age: 65 $135.20, 70 $145.04, 75 $169.62, 80 $194.20 and 85 $270.41.
3. I've spoken to an insurance agent and was told HD Plan G would be about $45 per month
Here is my thinking: If I am 65 at this moment and paying $135.20 per month for Plan G over the course of the year, I would be paying $1,622.40 for my health insurance (excluding Medicare deductible of $240 and which I am not bothering to include) and medical expenses. On the HD Plan G I would be paying $45 per month ($540 annual) and would have a cap of $2,800. If my math is right, that means I would need $14,000 of medical bills paying my 20% share to cap out at $2,800 deductible. The difference between the annual premium for HD Plan G and Plan G is $1,082. I would need medical expenses of $5,410 paying my 20% share to reach $1,082.
The fly in the ointment is that I don't know what medical tests costs. So, if I went to see specialists (endocrinologist, dermatologist, cardiologist) say a total of 6 visits in a year, had a Dexa test and an Echo do you think I would come close to incurring $5,400 of fees?
When I pretend that I am currently 85 years old at this moment, I would be paying $3,245 for Plan G, but the deductible for HD Plan G is only $2,800. I'm not seeing how it benefits me to be paying for Plan G in this case, even if the High Deductible Plan G increases to more than $45 per month. And when I look at the deductible increasing 20% in 4 years but the premium doubling by age 85, that is of concern.
However, despite all of this playing with math, the insurance brokers are telling me that it is a mistake to pick the High Deductible G because when I am older the deductible may become unaffordable. This neglects to take into account that the premium for Plan G may also become unaffordable.
Does anyone who has chosen High Deductible G regret the decision? What is your age? How is your health?
Does anyone see mistakes in my math or my logic?
Thank you for being my sounding board and helping me to finally make a choice.
This is an excellent, well thought out cost/benefit synopsis of the an HD v. regular Medigap Plan G.
Re the tests described above, your cost would be $240 Part B deductible plus only 20% of the Medicare-allowed charge for those services. Search the internet, Medicare reimbursements for Dexa (under $100) and EKG ($200) are ridiculously low - your share for any of those tests would be - on the super high side - $50 each. They also must be deemed 'medically necessary' or for diagnostic purposes - or Medicare won't pay at all, which means neither will the supplement.
So, no, your out-of-pocket in a normal year for approved/allowed services probably wouldn't amount to $500 or $600 - tops.
At 82, I have an HD for $848/year. My only regret is, like auto and homeowners, I'm paying for insurance I don't use. But the alternative of an over $3k/year premium for insurance I don't use isn't very palatable. Rarely doctor, except for chiropractor (I pay cash) and dentist. I'm probably an anomaly on the health spectrum for my age, but consider the HD a cya should age catch up with me.
Many people here, including me, have the HD plan - and its ranks are growing as people discover the HD plan is a very cost-effective vehicle for complete Medicare coverage without the high price. In my opinion, the HD plans are the best kept secret in the Medicare coverage world.
I just wanted to let you know UHC/AARP is launching HD-G in Florida in June. No word yet on if it will be available in other states later.
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