Regarding Medicare supplement insurance, also known as Medigap, Plan G has quickly become one of the most popular choices among retirees and new Medicare enrollees. But what exactly makes Plan G stand out from the rest? In this article, we’ll discuss the benefits, costs, and reasons why so many people choose this plan for 2025 and beyond.
Understanding Medigap Coverage
Medigap plans are additional insurance policies that help cover the “gaps” not addressed by Original Medicare (Part A and Part B). These gaps include expenses like copayments, coinsurance, and deductibles that Medicare doesn’t fully cover. Each Medigap plan is standardized by letter—A, B, C, D, F, G, K, L, M, and N—and the benefits of a plan with the same letter are identical regardless of which insurance company offers it.
To purchase a Medigap plan, you must already have Medicare Part A and B. These options can be especially beneficial for individuals seeking consistent healthcare expenses and the freedom to choose any physician or specialist that accepts Medicare.
What Makes Plan G Stand Out?
Plan G is frequently referred to as the most extensive Medigap plan for individuals who became eligible for Medicare on or after January 1, 2020. Before that date, Plan F offered similar coverage, but it’s no longer available to new enrollees. That shift has positioned Plan G as the go-to option for those wanting top-tier coverage without unexpected medical bills.
Plan G covers nearly all out-of-pocket costs under Original Medicare, including:
- Part A hospital coinsurance and costs for up to 365 days after Medicare benefits are used up
- Part B coinsurance or copayments
- First three pints of blood
- Skilled nursing facility coinsurance
- Part A hospice care coinsurance or copayments
- Part A deductible
- Part B excess charges
- 80% of foreign travel emergency care costs (up to plan limits)
The only major expense not covered by Plan G is the annual Medicare Part B deductible of $257 in 2025.
The High-Deductible Plan G Option
For those who prefer lower monthly premiums, the high-deductible version of Plan G can be an attractive choice. This version requires you to pay a deductible—$2,870 in 2025—before the plan covers your medical costs. After you meet that deductible, the plan works like regular Plan G, covering 100% of your share of approved Medicare expenses.
This option appeals to healthy retirees who don’t expect frequent medical visits but still want strong financial protection in case of a major illness or accident.
Cost Factors and Premium Variations
Plan G premiums vary based on several factors, including location, age, smoking status, and whether you qualify for guaranteed issue rights. Insurers use different pricing models to determine rates:
- Community-rated: Everyone pays the same premium, regardless of age.
- Issue-age-rated: Your rate is based on your age when you first enroll.
- Attained-age-rated: Premiums start lower but increase as you get older.
Before selecting a plan, it’s wise to ask how much the premium has increased over the past decade. Steady, predictable increases may be more manageable than sharp annual spikes.
Why So Many People Choose Plan G
According to Medicare enrollment data, nearly 40% of all Medigap policyholders have Plan G. The reasons are clear:
- Comprehensive coverage: Plan G covers nearly all major gaps in Original Medicare, offering peace of mind for those who don’t want to worry about unexpected costs.
- Predictable expenses: With most out-of-pocket costs eliminated after the small Part B deductible, budgeting for healthcare becomes much easier.
- Freedom of choice: Unlike Medicare Advantage plans, Plan G allows you to see any provider who accepts Medicare nationwide.
- Long-term value: While premiums can be higher, the extensive coverage often makes Plan G a cost-effective option in the long run, especially for those with ongoing medical needs.
Potential Drawbacks of Plan G
Plan G’s biggest drawback for some people is the premium cost. Standard Plan G premiums can be more expensive than those for less comprehensive Medigap or Medicare Advantage plans. Those higher premiums may not feel justified for people who rarely visit the doctor.
Additionally, those who choose the high-deductible version must be prepared to pay out-of-pocket before benefits kick in. If your health changes, switching from a high-deductible plan to standard Plan G can be difficult, as most states may require medical underwriting.
Alternatives to Consider
If Plan G doesn’t fit your needs or budget, Plans K, L, and N offer lower-cost alternatives with partial coverage for certain expenses. However, they include higher out-of-pocket limits and may not be ideal if you expect regular medical care.
For some individuals, Medicare Advantage (Part C) plans can be another option, offering lower monthly premiums and additional benefits like dental or vision coverage. However, remember that Medicare Advantage plans typically use provider networks and may have higher out-of-pocket costs.
How to Compare Plans in Your Area
Because premiums vary significantly by location and insurer, comparing your options is essential. You can use the official Medicare.gov Medigap Plan Finder to explore what’s available in your ZIP code and estimate your monthly costs.
The Bottom Line
Medigap Plan G remains the most popular choice for new Medicare enrollees because it balances comprehensive protection and predictable costs. Whether you choose the standard or high-deductible version, Plan G helps safeguard your finances against unexpected medical bills while allowing you to receive care from any Medicare-approved provider.
For many, the peace of mind and simplicity that come with Plan G make it a smart investment in their health and financial security during retirement.
