Plan G covers the Part B deductible but not the Part A deductible

AARP Plan G (also called Medigap Plan G) pays your Medicare Part B deductible in full. That deductible is $240 in 2024. It does not pay your Part A deductible, which is $1,676 in 2024 for each benefit period.

Plan G is one of the most popular Medigap plans because it covers many of the costs Medicare leaves unpaid. Beyond the Part B deductible, it also covers coinsurance, copayments, and the cost of a second opinion before surgery. The Part A deductible remains your responsibility unless you have other coverage.

The amounts change each year. Medicare announces new deductibles in the fall, and they take effect January 1. Your AARP Plan G premium may also change annually, though the deductible coverage itself does not vary by plan year.

Key Takeaways

  • AARP Plan G pays your Part B deductible ($240 in 2024) but you still owe the Part A deductible ($1,676 in 2024) out of pocket.
  • Plan G covers most other costs Medicare does not, including coinsurance and copayments for hospital stays and doctor visits.
  • Deductible amounts change every January, so the amount Plan G covers will increase over time.
  • You must be enrolled in both Medicare Part A and Part B to use AARP Plan G.

What Plan G covers beyond the Part B deductible

Plan G is designed to fill gaps in Original Medicare. After you meet your Part B deductible, Plan G pays 100% of the coinsurance Medicare requires you to share. For example, if you see a doctor, Medicare pays 80% and normally you pay 20%; Plan G covers that 20%.

Plan G also covers the cost of blood transfusions, hospice care coinsurance, and skilled nursing facility coinsurance. It pays for a second surgical opinion and for preventive care that Medicare does not cover. One exception: Plan G does not cover your Part A deductible or the daily coinsurance for hospital stays beyond 60 days in a benefit period.

The plan does not cover dental, vision, hearing aids, or long-term care. Those services fall outside Medicare entirely, and no Medigap plan covers them.

The difference between Part A and Part B deductibles

Medicare Part A covers hospital stays, skilled nursing, hospice, and home health. The Part A deductible applies once per benefit period (not per calendar year). A benefit period begins when you enter the hospital and ends 60 days after you leave. If you are hospitalized twice in the same calendar year but in different benefit periods, you owe the deductible twice.

Medicare Part B covers doctor visits, outpatient care, and medical equipment. The Part B deductible applies once per calendar year. After you pay it, you typically pay 20% coinsurance for most services for the rest of that year.

Because Part A deductibles reset based on hospital stays rather than the calendar, they are harder to predict. Plan G does not cover this cost, so you need to budget for it separately or carry additional coverage.

How Plan G premiums and deductible coverage work together

AARP Plan G has a monthly premium you pay to the insurance company. The premium covers the deductible and all the other gaps Plan G fills. You do not pay the deductible separately; Plan G straightforward covers it when you need care.

Plan G premiums vary by age, location, and the insurance company's underwriting. AARP offers Plan G through UnitedHealthcare, and rates differ by state. Younger people typically pay lower premiums than older people for the same plan, even though Plan G covers the same benefits at any age.

Some people find that Plan G's premium is worth the cost because it covers so many gaps. Others choose a less expensive plan like Plan N and accept paying more out of pocket for some services. Comparing plans side by side at your age and in your state is the only way to know which makes sense for your situation.

When you might owe the Part A deductible with Plan G

You will owe the Part A deductible ($1,676 in 2024) if you are admitted to the hospital while enrolled in Plan G. This happens because Plan G does not cover it. You pay this amount once per benefit period, not once per year.

If you are hospitalized, discharged, and then hospitalized again more than 60 days later, you enter a new benefit period and owe the deductible again. This can happen multiple times in a single calendar year if your health requires repeated hospital stays.

Some people reduce this risk by choosing Plan F instead of Plan G. Plan F covers the Part A deductible, but it is only open to people who were may be able to access for Medicare before January 1, 2020. If you became may be able to access after that date, Plan F is not an option, and Plan G is usually the most comprehensive choice available to you.

How to check your Plan G coverage before you receive care

Before a hospital stay or major procedure, call your AARP Plan G customer service number (on your insurance card) and ask what you will owe. Tell them the type of care you are receiving and ask whether you have met your Part B deductible for the year. They can tell you whether Plan G will cover the cost and what your out-of-pocket responsibility is.

For hospital stays, ask specifically whether the admission will trigger a new benefit period and whether you will owe the Part A deductible. This conversation takes 10 minutes and can prevent surprises.

You can also review your plan documents, which AARP sends annually and makes available online. The Summary of Benefits section lists exactly what Plan G covers and what it does not.

Frequently Asked Questions

Does Plan G cover my deductible if I have not met it yet?

Plan G covers your Part B deductible in full once you incur costs that would explore to it. You do not pay the deductible separately; it is straightforward covered as part of your plan. Plan G does not cover the Part A deductible under any circumstance.

What happens if I switch from Plan G to a different Medigap plan?

Your new plan's coverage takes effect on the date you switch. Any deductible you already paid under Plan G does not carry over. If you switch mid-year and have already met your Part B deductible under Plan G, you will not owe it again under your new plan for the remainder of that calendar year.

Can I use Plan G outside the United States?

Plan G covers emergency care outside the U.S. for the first 60 days of a trip, but routine care abroad is not covered. Medicare and Medigap plans are designed for use in the U.S. If you travel internationally regularly, ask AARP about coverage limits before you leave.

Is the Part A deductible the same every year?

No. The Part A deductible changes annually based on Medicare's cost projections. It was $1,676 in 2024. Medicare announces the new amount each fall, and it takes effect January 1. Your Plan G premium may also increase to reflect changes in healthcare costs.