Supplemental Plan G
Medicare Supplement (Medigap) Plan G benefits are the same as those of Plan F, with one exception. The Medicare Part B deductible, covered under Medigap Plans C and F, must be paid out-of-pocket in Plan G. The standard annual Medicare Part B deductible is $166 in 2016, and once your out-of-pocket expenses reach that amount, you become responsible for paying 20% of the cost of Medicare-approved Part B services.
The majority of Medicare Supplement plans do not cover Part B excess charges. These are additional charges outside of the Medicare-approved charge. For example, Medicare’s allowed charge for a doctor’s appointment could be $100, but the physician could choose not to accept that amount, and instead charge an additional 15% for the appointment. In this example, Medicare will pay 80% of the allowed charge, sending the physician $80. The beneficiary is responsible for paying not only the remaining $20, but also the excess 15% charge, another $15, making the total out-of-pocket cost $35. Medicare Supplement Plan G covers this excess charge.