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Medicare Supplement Plan G: Understanding Benefits and Costs in Illinois

Written by Andy Branz – Sr. Wealth Advisor at Clark Wealth Partners 

Imagine Sarah, a 65-year-old retired civilian worker from Scott Air Force Base in O’Fallon, IL, who spent her first year of retirement gardening and visiting family. One unexpected day, she experienced a heart issue that required hospitalization and follow-up care. With only Original Medicare, she encountered bills that quickly added up, highlighting the gaps in coverage. Stories like Sarah’s illustrate why exploring options like Medigap Plan G may be helpful for managing potential health expenses.

Medicare Supplement Insurance, or Medigap, assists in covering certain costs not fully paid by Original Medicare (Parts A and B). Plan G is a common Medigap option that addresses many of these gaps while providing broad standardized coverage. In 2026, it continues to be a popular choice among new enrollees. 

What Is Medigap Plan G? 

Plan G helps pay for expenses after Original Medicare processes a claim, such as copays and deductibles, excluding the Part B deductible. It’s often selected by individuals seeking to limit unpredictable costs during health events. 

What Is Coinsurance? 

Coinsurance is the share of approved medical costs you cover after Medicare pays its portion. For example, under Part B, Medicare typically handles 80%, leaving you with 20%. 

Key Benefits of Plan G 

Plan G offers broad coverage designed to help reduce certain out-of-pocket expenses associated with Medicare-approved services.  It includes: 

  • Part A hospital coinsurance and costs, plus up to 365 extra days once Medicare benefits end. 
  • Part B coinsurance (your 20% for doctor visits, outpatient services, and therapy). 
  • First three pints of blood, skilled nursing facility coinsurance, and hospice copays. 
  • Main personal cost: The annual Part B deductible of $283, paid once per year. After that, Plan G covers the remainder for approved services. 

Medigap policies are standardized by the federal government. Benefits for a given letter plan are generally the same regardless of carrier, although premiums vary. 

Typical Costs for a 65-Year-Old in Illinois 

Plan G premiums in Illinois for a 65-year-old depend on the insurer, location, health, and factors like smoking status. For a nonsmoking female, monthly rates often range from $115 to $314, with averages around $169. Comparing quotes from different carriers is key, as prices can vary. Premium figures referenced are based on publicly available information as of 2026 and are subject to change.

Example: A Health Issue Without Plan G

Consider Jane, 65, with only Original Medicare (Parts A, B, and D). She has a stroke leading to a 10-day hospital stay and rehabilitation, with total costs of $100,000.

  • Part A: Covers most hospital expenses after the $1,736 deductible. Jane pays this amount. 
  • Part B: Covers 80% of $25,000 for doctor fees and outpatient care; Jane pays 20% ($5,000). 
  • Therapy: Weekly sessions at $250 each for 20 visits total $5,000; Jane pays 20% ($1,000). 
  • Total out-of-pocket: $1,736 + $5,000 + $1,000 = $7,736. 

This example shows how coinsurance can accumulate without additional coverage. 

Example: The Same Issue With Plan G 

With Plan G, Jane pays the $283 Part B deductible once. Plan G then covers: 

  • Part A deductible: $1,736. 
  • Part B coinsurance: $5,000. 
  • Therapy coinsurance: $1,000. 
  • Total out-of-pocket: Just $283 (plus monthly premiums, around $169 or $2,028 annually). 
  • Difference: Therapy costs $0 personally, with overall savings of $7,453 on this event. 

In this hypothetical example, Plan G significantly reduces Jane’s out-of-pocket exposure for Medicare-approved services.  Actual savings, if any, will vary depending on the services received and Medicare-approved amounts. 

Examples like this are intended to illustrate how supplemental coverage may help manage certain Medicare cost-sharing obligations. 

Key Facts About Plan G 

Plan G limits annual exposure mostly to the Part B deductible, adding stability. It provides a straightforward approach to addressing Medicare gaps.  Pricing differences vary by carrier and location. 

In Summary 

In Illinois, Plan G premiums vary by carrier and rating structure and can help manage significant costs from events like hospital stays or therapy. Understanding these basics empowers better planning for health expenses. Individuals should consult with a licensed insurance professional to review their specific circumstances before making coverage decisions. 

Important Disclosure Information 

This is a hypothetical example for illustrative purposes only and does not represent an actual client experience. This material is provided for general informational and educational purposes only and is not intended as personalized insurance, investment, tax, or legal advice. 

Medicare Supplement insurance policies are sold by private insurance companies and are not affiliated with or endorsed by the U.S. government or the federal Medicare program.

The examples provided are hypothetical and for illustrative purposes only. They do not represent actual client experiences. Actual costs, coverage, and premiums will vary based on Medicare-approved amounts, carrier pricing, location, age, underwriting method, tobacco status, and other factors. Premiums are subject to change.

Viewing this content does not create an advisory or client relationship with Clark Wealth Partners, LLC. Investing involves risk, including possible loss of principal. 

References  

  1. Compare Medigap Plan Benefits – https://www.medicare.gov/health-drug-plans/medigap/basics/compare-plan-benefits 
  2. Fact sheet: 2026 Medicare costs – https://www.medicare.gov/publications/11579-medicare-costs.pdf 
  3. Costs | Medicare – https://www.medicare.gov/basics/costs/medicare-costs 
  4. CMS releases details on Medicare premiums, deductibles for 2026 | AHA News – https://www.aha.org/news/headline/2025-11-17-cms-releases-details-medicare-premiums-deductibles-2026 
  5. Medicare Part B Premiums and Deductibles Will Increase in 2026 – https://www.rrb.gov/Newsroom/NewsReleases/MedicarePartBPremium 
  6. 2026 Medicare Parts A & B Premiums and Deductibles – https://www.cms.gov/newsroom/fact-sheets/2026-medicare-parts-b-premiums-deductibles 
  7. Fact sheet: 2026 Medicare costs – https://www.medicare.gov/publications/11579-medicare-costs.pdf 
  8. Costs | Medicare – https://www.medicare.gov/basics/costs/medicare-costs 
  9. How Much Does Medicare Cost in 2026? Parts A, B, C and D – https://www.humana.com/medicare/medicare-resources/medicare-part-a-b-c-d-cost 
  10. 2026 Medicare Parts A & B Premiums and Deductibles – https://medicareadvocacy.org/2026-medicare-rates 
  11. 2026 Medicare Parts A & B Premiums and Deductibles – https://www.cms.gov/newsroom/fact-sheets/2026-medicare-parts-b-premiums-deductibles 
  12. Fact sheet: 2026 Medicare costs – https://www.medicare.gov/publications/11579-medicare-costs.pdf 
  13. What You’ll Pay in Out-of-Pocket Medicare Costs in 2026 – https://www.ncoa.org/article/what-you-will-pay-in-out-of-pocket-medicare-costs-in-2026 
  14. Medicare Supplement Plan G (The Better Value Plan) – https://boomerbenefits.com/medicare-supplemental-insurance/medicare-supplement-plans/medicare-plan-g 
  15. How Much Does a Medicare Supplement Plan Cost? – https://www.humana.com/medicare/medicare-resources/medicare-supplement-plan-cost 
  16. 2026 Medicare Plan G Prices in Illinois Compared to Other Places – https://illinois.medicaresignups.com/medicare-supplement/2026-medicare-plan-g-prices-in-illinois-compared-to-other-places 
  17. Best Medicare Supplement Rates By Age (Plan G, Plan N, & Plan F Rates) – https://seniorbenefitclient.com/medicare-supplement-rates-by-age 
  18. Costs | Medicare – https://www.medicare.gov/basics/costs/medicare-costs 
  19. Best Medicare Supplement Plans in Illinois (2026) – https://www.moneygeek.com/insurance/health/best-medicare-supplement-illinois 
  20. Medicare Supplement Rate Booklet – https://www.bcbsil.com/il/documents/medicare/med-supp/2025/medsup-gi-rate-booklet.pdf 
  21. Best Medicare Supplement Plan G Companies in 2026 – https://www.nerdwallet.com/insurance/medicare/best-medigap-plan-g-companies 
  22. Best Medicare Supplement Plan 2026? Plan G vs Plan N vs High Deductible G Explained – https://www.youtube.com/watch?v=sQXO7Xat5To 
  23. Is Medigap Still Worth It in 2026 If You’re Healthy? – https://medicareguide.com/is-medigap-still-worth-it-in-2026 
  24. The ‘100% Overwhelming’ Decision: What Do You Do About Medigap? – https://www.kiplinger.com/retirement/medicare/mind-the-medigap-your-big-decision-for-supplementing-medicare 
  25. Medicare Supplement Plan G (The Better Value Plan) – https://boomerbenefits.com/medicare-supplemental-insurance/medicare-supplement-plans/medicare-plan-g 
  26. Sign up for Medicare in O’Fallon, IL for 2026 – https://illinois.medicaresignups.com/medicare-in-ofallon-il 
  27. Understanding Medigap Plan G 2026: Benefits, Costs & Deductibles Explained – https://www.selectquote.com/medicare/medicare-plans/supplement-plans/plan-g 
  28. Medicare Supplement Plan G (2026) – https://www.bcbsnd.com/members/medicare/medicare-coverage-options/medicare-supplement-plans-2026/plan-g 
  29. Medicare Supplement Plan G – https://www.uhc.com/medicare/health-plans/medsupp-details.html/99654/G01/2026 
  30. Medicare Supplement Plan G (The Better Value Plan) – https://boomerbenefits.com/medicare-supplemental-insurance/medicare-supplement-plans/medicare-plan-g
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