The Sticker Shock of Medicare Supplements

One of the most common questions I hear is, ‘Is Medigap Plan G worth it?’ Let’s break it down... When most people first look at their Medicare options, they expect it to feel like a relief—finally, healthcare coverage that’s supposed to work. But instead, I hear the same thing over and over:

“I thought Medicare would cover everything… why do I still need a supplement? And why is Plan G so expensive?!”

If that’s you, trust me—you’re not alone. Every week, I talk to people turning 65 who feel like Medicare opened the door to a whole new world of confusion. And then they see Plan G's price and wonder if it’s some kind of trap.

I remember one client, Barb from Allentown, who called me in a panic. She’d been quoted over $150/month for a Plan G policy and said, “Dave, that’s more than my electric bill! Why is everyone saying it’s the best plan?”

Great question. And here’s the answer:
Plan G isn’t cheap… because it covers nearly everything.

It’s like comparing a used car to a luxury SUV with all the bells and whistles. Sure, the SUV costs more—but when winter hits and you’re driving in a snowstorm, which one do you want to be in?

In this article, we’ll break it all down in plain English. I’ll walk you through what Plan G really covers, why it’s priced the way it is, and most importantly, why so many people (including me) believe it’s the best deal in healthcare—especially if you want to avoid the "gotchas" that come with other plans.

Let’s start by looking under the hood of Plan G and seeing what you actually get for that premium.

What Is Medigap Plan G? (And What Does It Cover?)

Let’s clear up the basics first, because this is where a lot of the confusion starts.

Medigap—also called Medicare Supplement Insurance—is designed to fill in the gaps that Original Medicare (Parts A and B) doesn’t cover. Because yes… there are a lot of them. Things like deductibles, co-pays, and coinsurance can still leave you with some pretty steep out-of-pocket costs. That’s where Medigap comes in.

And Plan G?
Plan G is one of the most comprehensive Medigap options available. In fact, it’s the most popular choice for new Medicare enrollees right now—and with good reason.

Here’s a quick snapshot of what Plan G covers:

• ✅ 100% of your Part A coinsurance and hospital costs (after Medicare pays its share)
• ✅ Skilled nursing facility care coinsurance
• ✅ Part A deductible (which is over $1,600 as of 2025)
• ✅ Part B coinsurance or co-pays (the 20% you’d normally be on the hook for)
• ✅ Blood (first 3 pints)
• ✅ Emergency medical care while traveling abroad
• ✅ Medicare Part B excess charges (a sneaky one most people don’t even know exists)

And here’s the big deal: the only thing Plan G doesn’t cover is the small Part B deductible, which is just $257 in 2025.

That’s it.

Once you meet that annual deductible, Plan G picks up everything else that Medicare allows. You don’t need to worry about getting hit with a mystery bill for your doctor visit, or a $900 surprise after a quick hospital stay. It’s all taken care of.

I had a client, Tom from Easton, who needed physical therapy after a hip replacement. The sessions were covered by Medicare, but without Plan G, he would’ve been paying 20% out of pocket every time. That adds up fast. Instead, with Plan G, he paid the $240 deductible for the year… and that was it. Every visit after that? Covered.

The beauty of Plan G is that it makes your healthcare predictable and stress-free, which is something a lot of folks don’t fully appreciate until a big health issue shows up.

Now that we’ve covered what Plan G actually includes, let’s talk about why it seems so pricey—and whether that price really holds up under scrutiny.

The Hidden Costs That Plan G Helps You Avoid

Let’s dig into what most folks don’t see when they compare Medicare plans:
The hidden costs of the cheaper options.

It’s easy to focus on monthly premiums—we’re wired to do that. We think, “Plan N is $40 cheaper than Plan G, and this Medicare Advantage plan has no premium at all. Why wouldn’t I go with one of those?”

Here’s why:
The real cost of healthcare is what you pay when something goes wrong.

Let me tell you about one of my clients, Steve, from Bethlehem. He picked a low-cost Medicare Advantage plan because of the $0 premium. At the time, he was healthy and figured he wouldn’t need much care. Six months in, he slipped on ice and broke his hip. After the ER visit, surgery, inpatient rehab, and follow-up therapy, he was out-of-pocket over $4,000.

And that was on a plan he thought was “free.”

Now contrast that with Mary, another client from right here in the Lehigh Valley. She chose Plan G. When her knee gave out and she needed a replacement, she called me nervous—expecting a big bill. I reminded her she’d already paid her $240 Part B deductible. That’s it. Everything else? Covered.

She almost cried from the relief.

Here are a few hidden costs that Plan G protects you from:

• Part A deductible – Over $1,600 each benefit period (not just once per year!)
• Hospital stays – $400–$1,500 out-of-pocket with many Advantage or lower-level Supplement plans
• Specialist co-pays – $35–$50 per visit adds up fast
• ER visits – Easily $100–$200 or more per trip
• Out-of-network charges – Not a problem with Plan G, but a major issue with network-based plans

And don’t forget those Part B excess charges—extra fees some doctors are allowed to bill above Medicare’s rates. Plan G covers those, but Plan N doesn’t.

So while Plan G might cost more monthly, it saves you in the moments when your health—and your bank account—need protection the most.

Coming up next, we’ll talk about one of the most overlooked advantages.

Absolutely! Here’s Section V with that same helpful, conversational tone:

Predictable Budgeting = Peace of Mind

One of the biggest stressors for folks on a fixed income isn’t just the cost of healthcare—it’s the unpredictability of it.

You can budget for your electric bill, your groceries, even your property taxes. But healthcare? That’s where things get tricky... unless you’re on Plan G.

With Plan G, you get something that’s incredibly valuable in retirement: peace of mind and predictable costs.

Let me explain.

Say you’re retired, living off Social Security and maybe a modest pension or 401(k). The last thing you want is to get hit with a $2,000 hospital bill out of nowhere or have to decide between seeing a specialist or skipping the visit because of the co-pay.

With Plan G, your costs are simple:

• Your monthly premium (which never changes mid-year)
• Your small annual deductible (currently $240)
• That’s it. Done.

Once you pay that deductible, you can go to the doctor, get an MRI, have outpatient surgery, whatever you need—and not worry about how much it’s going to cost.

I once had a client, Rita, who told me she picked Plan G because she wanted to sleep better at night. That stuck with me. She’d seen her husband go through a series of treatments that left them with unexpected bills because his Medicare Advantage plan had limits and co-pays she didn’t fully understand.

“I’m not playing that game,” she said. “I’d rather pay upfront and know I’m covered.”

And she’s right. With Plan G, you’re not just buying coverage—you’re buying certainty. You’re buying the ability to plan your monthly budget without holding your breath every time a new medical bill arrives.

In the next section, we’ll talk about another underrated benefit of Plan G—freedom. No networks. No referrals. No red tape.

The Fine Print: Why Plan G Offers More Freedom Than You Think

Here’s something that doesn’t get talked about enough when people are comparing Medicare plans:

Freedom.

And no, I’m not just talking about freedom from surprise bills—we’ve covered that. I’m talking about the freedom to see the doctors you want, when you want, wherever you are. That’s something Medigap Plan G quietly excels at.

Let’s break it down.

No Networks

Unlike Medicare Advantage plans, which often lock you into an HMO or PPO network, Plan G lets you see any doctor or specialist who accepts Medicare nationwide.

That means no:

• Hunting for “in-network” providers
• Switching primary care doctors just because you moved
• Denials because your provider was “out-of-area”

If they take Medicare? You’re in. It’s that simple.

I had a client, Jim, who spends winters in Florida and summers in Pennsylvania. When he was shopping plans, he asked me, “Do I have to worry about finding a doctor down south?” I smiled and said, “Not with Plan G. If they take Medicare, you’re good to go.”

That was all he needed to hear.

No Referrals

Another perk? You don’t need a permission slip (referral) to see a specialist. With many Advantage plans, your primary care doctor has to approve any specialist visit—even if it’s something urgent like a cardiologist or dermatologist.

With Plan G, you make the call.
You stay in control.

Travel-Friendly

Let’s say you’re visiting family in another state and something happens—you twist your knee, or need to see a doctor for bronchitis. With Plan G, you don’t have to come home to get care. You’re covered across all 50 states and even for certain emergencies abroad (up to plan limits).

That level of flexibility is huge, especially for:

• Snowbirds
• RV travelers
• Anyone with grandkids scattered across the country

So while other plans come with limitations and hoops to jump through, Plan G quietly offers the kind of real freedom that makes a big difference—not just in emergencies, but in everyday life.

Coming up next, we’ll zoom out and look at the big picture: Why paying more now for Plan G could actually cost you less in the long run.

Long-Term Value vs. Short-Term Savings

Let’s face it—when you’re comparing Medicare plans for the first time, it’s tempting to go with what’s cheapest today.

A $0 premium Medicare Advantage plan or a lower-cost Medigap option like Plan N can look pretty attractive. And if you’re healthy right now, you might think, “Why should I pay more for coverage I might not need?”

But here’s what I always remind people:
Healthcare isn’t about where you are today. It’s about where you could be tomorrow.

I’ve been in this business long enough to see the full picture—clients who picked the cheapest plan because it “looked fine” when they signed up… only to call me six months later when they were drowning in unexpected costs or stuck in a network that didn’t include their new specialist.

Let me give you an example.

I worked with a couple—let’s call them Bill and Linda. They were both turning 65 around the same time. Bill chose a Medicare Advantage plan with a $0 premium. Linda chose Plan G, even though it was $165 a month.

A year later, Bill had to deal with two hospital visits, multiple follow-ups, and some outpatient rehab. Between deductibles, co-pays, and limits on coverage, he spent over $3,700 out of pocket.

Linda? She paid her 2024 $240 deductible… and that was it.

She told me later, “At first, I thought I was being overly cautious. Now I feel like I dodged a bullet.”

And it’s not just about money—it’s about avoiding stress at a time when you need peace, clarity, and the ability to focus on healing.

Here’s how the math usually plays out over time:

When you add it all up over a 5-year period, Plan G often ends up costing the same—or less—than the “cheaper” options, especially if you end up needing care (and let’s be real—most of us will at some point).

If you’re the kind of person who’d rather pay a little more now to avoid a lot of hassle later, Plan G is absolutely worth a second look.

Next, we’ll break down who Plan G is actually best for, so you can see if it fits your lifestyle and needs.

Who Should Strongly Consider Plan G?

Now that you know what Plan G covers, how it works, and how it compares over time… the next logical question is:

“Is it right for me?”

Not every plan fits every person. But from experience, I can tell you that Plan G is a strong fit for a lot of people—especially those who value simplicity, freedom, and peace of mind.

Here’s a quick rundown of who should seriously consider Plan G:

🏥 People With Ongoing Health Conditions

If you already see multiple specialists, take regular medications, or have chronic health concerns (like diabetes, heart issues, or arthritis), Plan G can dramatically reduce your out-of-pocket expenses. You’ll know what you’re paying each month—and won’t be surprised by bills when you need care the most.

🧳 Frequent Travelers or Snowbirds

Traveling between states or spending winters in Florida or Arizona? Unlike Medicare Advantage plans, Plan G follows you anywhere Medicare is accepted. No need to change doctors or panic if you’re away from home. One of my clients joked, “It’s the plan that vacations with me.”

📅 People Who Like to Keep It Simple

With Plan G, you don’t have to:

• Worry about provider networks
• Request referrals to see a specialist
• Decode confusing co-pay charts

If you like things clear and easy, this plan is for you.

🧠 Those Who Prefer to Plan Ahead

Plan G is perfect for people who want to avoid future “what ifs.” It’s especially valuable during your initial Medicare enrollment, when you’re guaranteed coverage with no medical underwriting. If you wait and try to switch later, you may be denied due to health conditions.

So if you're healthy now but want to lock in the best coverage while you can, Plan G is your window of opportunity.

👨‍👩‍👧 Spouses or Caregivers Who Don’t Want Surprises

If you’re helping a parent or spouse enroll, Plan G brings peace of mind to you, too. No confusing bills to untangle. No arguing with networks. Just coverage that works—consistently.

I often tell people: “If you want to spend retirement focusing on living your life—not worrying about healthcare paperwork—Plan G is made for you.”

Next, let’s go over a few common objections people have about Plan G—and why they might not be the deal-breakers they seem.

Common Objections—And the Truth

Even after going through everything Plan G offers, some people still hesitate. That’s totally normal—it’s a big decision, and you should feel confident about it.

So let’s talk about the most common objections I hear, and clear the air with some real talk.

❓ “What if I’m healthy? I barely go to the doctor now.”

That’s great! I hope it stays that way for years to come. But here’s the truth: your best time to lock in Plan G is while you’re healthy.

Why? Because during your Initial Enrollment Period, you’re guaranteed coverage with no health questions asked. If you try to sign up for Plan G later, you could be denied based on your medical history.

Think of it like fire insurance—you don’t wait for the house to catch fire to buy it.

❓ “Plan N is cheaper—why not just go with that?”

You’re right—Plan N usually has a lower monthly premium. But there are trade-offs:

• You’ll pay copays at the doctor and ER.
• You could be billed Part B excess charges (Plan G covers those; Plan N does not).
• There’s more out-of-pocket risk if you have frequent or complex medical needs.

For some, Plan N works fine. But if you want zero guesswork and the most complete coverage, Plan G is the safer bet.

❓ “Can’t I just switch to Plan G later if my health changes?”

This is a big one—and the answer is: maybe, but there’s no guarantee.

After your one-time Medigap Open Enrollment ends (usually 6 months after your Part B starts), you’ll likely have to go through medical underwriting to get into Plan G. That means answering health questions—and possibly being denied.

I’ve had people call me after a diagnosis, wanting to switch into Plan G… and we couldn’t get them in. That’s a heartbreaking conversation I never want to have.

❓ “It’s just so expensive each month...”

Yep, the premium is higher than some other plans. But remember:

• It’s predictable.
• It’s all-inclusive after your deductible.
• And over time, it often ends up saving you more than it costs.

You’re not just paying for coverage—you’re paying for confidence, control, and peace of mind.

If you’re still unsure, that’s okay. Every situation is different, and that’s what I’m here for. But before you make a final decision, make sure you’ve looked at the whole picture, not just the monthly price tag.

Next up, let’s wrap this all up with a simple message: why Plan G just makes sense for so many people—and might be exactly what you need to start your Medicare journey on solid ground.

Final Thoughts: Premium Coverage for a Premium Life

Let’s bring it all together.

Yes—Plan G isn’t the cheapest option. But when you step back and look at everything it provides, it’s easy to see why so many people call it the best deal in Medicare.

You get:

• Top-tier coverage with almost no out-of-pocket surprises
• Freedom to see any doctor who takes Medicare—anywhere in the country
• No networks, no referrals, no red tape
• Peace of mind that your healthcare is handled, no matter what life throws at you

And maybe most importantly… you get to retire with confidence.

For a lot of the people I work with, this decision isn’t just about money—it’s about living their life fully. It’s about protecting their spouse. It’s about knowing they can enjoy their grandkids, travel, and sleep well at night without worrying about the next medical bill.

I think about Barb, the client I mentioned in the intro. She called me six months after enrolling and said, “I never thought I’d say this about insurance, but thank you. I don’t worry anymore.”

That’s what Plan G gives people.

If you're the type of person who likes to plan ahead, who values peace of mind, and who doesn’t want your health—or your wallet—left to chance… Plan G might just be your plan.

Let’s Talk About Your Options

Everyone’s situation is different, and I’m here to help you figure out what fits you best.

Want to compare Plan G premiums in your area?
Not sure if it’s the right move for your health or your budget?

Let’s chat. No pressure, no jargon—just honest guidance from someone who’s helped hundreds of people through this exact decision.

👉 Click here to schedule your free call

You don’t have to figure this all out alone. Let’s make sure you start Medicare with confidence.

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