Medicare Advantage vs Medigap Plan G
What are Medigap Plan G costs, and how does it compare to Medicare Advantage plans? With Medigap Plan G, Medicare is your primary insurance, and it works by paying the Medicare-approved amount for your Medicare-approved services. Typically, Medicare pays 80%, and Plan G pays the 20% balance.
In comparison, Medicare Advantage plans have copays. However, Medigap Plan G does not have any copays. The only out-of-pocket cost with Plan G is Medicare's Part B annual deductible which is $226 in 2023.
Medigap Plan G Costs
There may be some confusion about Medigap costs. First, let's determine the difference between a deductible and a copay. A deductible is the amount of money that you have to pay before the insurance company steps in and pays what they're supposed to pay. A deductible is not something you pay at the time of your service.
For example, if you have Plan G and have an MRI, CAT scan, or a simple doctor's visit, you will give them your Medicare card and your Medicare Supplement Plan G card. They will process your service with billing, and if you have met your deductible, you will not receive a bill in the mail. However, if you haven't met the deductible, you will receive an invoice for the remaining balance of your deductible.
A copay is a pre-negotiated price that you agree to pay with the insurance company. For example, if you have a Medicare Advantage plan, you may have to pay a $20 copay to see your primary care doctor or a $40 co-pay for a specialist. You will have to pay that copay every time you have medical service.