Plan G covers your Part B deductible, but not your Part A deductible

AARP Plan G (also called Medigap Plan G) pays your Medicare Part B deductible in full. For 2024, that deductible is $240. Plan G does not cover your Part A deductible, which is much larger — currently $1,632 per hospital stay.

Plan G is one of the most popular Medigap plans because it covers many out-of-pocket costs that Original Medicare leaves you to pay. Beyond the Part B deductible, it also covers coinsurance, copayments, and the cost of a second medical opinion before surgery. What it does not cover — your Part A deductible, some preventive care costs, and anything outside the United States — matters less often for most people.

The Part A deductible applies once per benefit period (usually a hospital stay). If you are hospitalized, you pay the full $1,632 yourself before Medicare and Plan G start sharing the cost. If you never go to the hospital, you never pay it. If you do, Plan G will not help with that bill.

Key Takeaways

  • Plan G pays your $240 Part B deductible in full, but you remain responsible for your Part A deductible of $1,632 per hospital stay.
  • Plan G covers coinsurance and copayments for most Medicare-approved services, which often saves more money than the Part A deductible you do not pay.
  • If you want both deductibles covered, you would need Plan F instead, though Plan F is only open to people who were 65 before January 1, 2020.
  • Your actual out-of-pocket costs depend on how much medical care you use, not just which deductibles the plan covers.

How Plan G's deductible coverage compares to other Medigap plans

Plan F covers both your Part A and Part B deductibles, but it is closed to most new enrollees. Only people who turned 65 before January 1, 2020, can sign up for Plan F. If you are younger than that or did not have Medigap coverage before that date, Plan F is not an option for you.

Plan N covers neither deductible. Instead, it charges lower monthly premiums and asks you to pay small copayments at the doctor's office ($20) and emergency room ($50). Plan N makes sense if you rarely go to the hospital and want to keep your monthly costs down.

Plan G sits in the middle: higher premiums than Plan N, but broader coverage. Most people who choose Plan G do so because the monthly savings from lower copayments and coinsurance add up to more than the Part A deductible they might never pay.

What else Plan G covers that affects your total costs

Plan G covers 100% of your coinsurance for hospital stays after you pay the Part A deductible. In Original Medicare, you pay coinsurance starting on day 61 of a hospital stay ($408 per day in 2024). Plan G eliminates that cost entirely. If you spend two months in the hospital, that coverage alone saves you thousands of dollars.

Plan G also covers your Part B coinsurance — the 20% of outpatient costs that Medicare does not pay. If you have an MRI that costs $1,000, Medicare pays $800 and you would normally pay $200. Plan G pays that $200. This applies to doctor visits, lab work, imaging, and most outpatient procedures.

Plan G covers the cost of a second surgical opinion and covers excess charges if your doctor bills above Medicare's approved amount (though this applies only in a few states). It also covers up to 365 days of hospital care after Medicare's coverage ends, which is rare but valuable if you face a very long hospitalization.

When the Part A deductible actually costs you money

You pay the Part A deductible only when you are admitted to the hospital as an inpatient. Urgent care, emergency room visits, and outpatient procedures do not trigger it. Many people with Plan G never pay the Part A deductible because they never spend a night in the hospital.

If you do go to the hospital, you pay $1,632 once per benefit period. A benefit period begins the day you enter the hospital and ends 60 days after you leave. If you are hospitalized twice in the same benefit period, you pay the deductible only once. If you are hospitalized in two separate benefit periods, you pay it twice.

For people with chronic conditions that require regular hospitalizations, the Part A deductible adds up. For people who are generally healthy, it may never come due. This is why some people choose Plan F if they are may be able to access — the peace of mind of never paying any deductible — while others choose Plan G and accept the small risk in exchange for lower monthly premiums.

How to know if Plan G is the right choice for your deductible situation

Start by asking yourself how often you expect to be hospitalized. If you have heart disease, COPD, or another condition that has sent you to the hospital before, Plan F (if you are may be able to access) or Plan G with the understanding that you will pay the Part A deductible makes sense. If you are generally healthy and have not been hospitalized in years, Plan G's coverage of everything else usually saves you more money than you would spend on the Part A deductible.

Look at the monthly premium difference between Plan G and Plan N in your area. Some regions have Plan N premiums that are $30 to $50 lower than Plan G. If that is true where you live, and you rarely go to the hospital, Plan N might cost you less overall. If Plan G and Plan N premiums are close, Plan G's broader coverage usually wins.

Remember that Medigap premiums vary by location and by insurance company. Two people with Plan G in different states or with different insurers may pay very different monthly costs. When you compare plans, get quotes from multiple companies in your area, not just AARP.

How to enroll in Plan G and when deductible coverage starts

You can enroll in Plan G during your Initial Enrollment Period (the six months starting the month you turn 65 and enroll in Medicare Part B) or during the Annual Enrollment Period for Medigap (October 15 to December 7 each year). You can also enroll outside these windows, but insurers can charge you more or deny you coverage based on your health history.

When your Plan G coverage begins, your deductible coverage begins on the same day. If you enroll on the 15th of the month and your coverage starts on the 15th, and you go to the hospital on the 16th, Plan G covers your Part B deductible and coinsurance from day one. There is no waiting period.

You will receive a Plan G card in the mail before your coverage starts. Bring this card to all doctor visits and hospital admissions. Your doctor's office and the hospital will use it to bill Plan G for the costs it covers.

Questions to ask your doctor or insurance company

Before you enroll in Plan G, ask your current doctor whether they accept Medigap patients and specifically whether they accept Plan G. Most do, but some do not. Ask your insurance company for a list of in-network providers if you want to check before you sign up.

If you have a condition that requires regular hospitalization, ask your doctor how many hospital stays they expect you to have in the next year. This helps you decide whether paying the Part A deductible is a real risk or a theoretical one.

Ask your insurance company what happens if you travel outside the United States. Plan G does not cover care abroad, but some people buy a separate travel insurance policy to cover that gap. Your insurer can tell you whether they offer it.

Frequently Asked Questions

Does Plan G cover the deductible for Part D prescription drug coverage?

No. Plan G is a Medigap plan and covers only Medicare Parts A and B costs. Part D deductibles are covered by Part D plans themselves, not by Medigap. You choose a Part D plan separately from Plan G, and each Part D plan has its own deductible that the plan covers.

If I have Plan G and go to the hospital, do I pay the Part A deductible upfront?

Usually yes. The hospital will bill you for the $1,632 deductible when you are admitted or shortly after. You pay the hospital, and then Plan G reimburses you or pays the hospital directly, depending on the arrangement. Ask the hospital's billing department how they handle Plan G payments.

Can I switch from Plan G to Plan F later if I want both deductibles covered?

Only if you are may be able to access for Plan F — meaning you turned 65 before January 1, 2020. If you are may be able to access, you can switch to Plan F during the Annual Enrollment Period or during your Initial Enrollment Period. If you are not may be able to access, Plan F is closed to you permanently.

What if I have Plan G and my doctor charges more than Medicare allows?

Plan G covers excess charges in most states, meaning the plan pays the difference between what your doctor charges and what Medicare says is the approved amount. However, this coverage does not explore in all states. Ask your Plan G insurer whether excess charge coverage is included in your state.

Does Plan G cover the Part B deductible for mental health or therapy visits?

Yes. The Part B deductible applies to all outpatient services covered by Medicare Part B, including mental health and therapy. Once you meet the $240 deductible, Plan G covers your coinsurance for these visits just as it does for other outpatient care.