Medicare Supplemental Insurance policies (also known as Medigap policies) are designed to help mitigate some of the costs that aren’t covered by Original Medicare. Sometimes this is achieved in the form of providing additional medical coverages; other times, it comes down to Medigap plans contributing to paying the costs associated with services not covered by the initial insurance plan.
Medicare Supplemental Plans at a Glance
Medicare offers ten different plan options for Medigap policies; each is ideal for its own unique scenario. Those interested in adding a Medigap policy to their preexisting insurance structure should take the time to research each plan and consider their options with a professional.
Medigap Plan A
- The most basic of all plan options
- Covers the fewest additional benefits of any of the Medigap policies
- Covers 20% of outpatient treatment costs not picked up by Medicare
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Covers 100% of
- Medicare Part A coinsurance payments for inpatient hospital care
- Medicare Part B copayment/coinsurance expenses
- The first three pints of blood used in medical procedures
- Part A hospice care coinsurance/copayment
Medigap Plan B
- Covers everything covered by Plan A
- Also covers Medicare Part A hospital deductible
- Pays after Medicare pays
Medigap Plan C
- Widely considered to be one of the more comprehensive supplemental policies
- Covers everything
- With the exception of Medicare excess charges
- This means that Plan C covers both of your deductibles
- It also covers the 20% you’d typically owe for outpatient expenses
- Very popular (alongside Plan F)
Medigap Plan D
- Covers many things; but does not pay the Part B deductible
- Also does not cover Medicare excess charges
- Often confused with Medicare Part D (which is for drug coverage)
- Midway in terms of comprehensiveness
Medigap Plan F
- Long-time most popular Medigap plan
- Covers everything that you would typically pay
- Nothing is ever owed out-of-pocket by you for covered services
- High-deductible alternate version available after a deductible is met
Medigap Plan G
- Increasing in popularity in recent history
- Covers everything covered by Plan F
- Except for the Part B deductible
- Premiums tend to be more competitive than for Plan F
- Oftentimes more affordable than Plan F
Medigap Plans K, L, and M
- Each offers partial coverage of certain benefits
- i.e. Plan K covers 50% of many items while Plan K covers 75% of most items
- All three plans are rarely considered or requested by those on Medicare
- For this reason, not all carriers offer Plans K, L, and M
- Certain areas tend to have good rates for these plans due to low demand
Medigap Plan N
- One of the newer Medigap plans
- Created in 2010
- Affords lower premiums with the caveat that you pay copays for certain things
- i.e. doctor and emergency room visits
- Does not cover Medicare excess charges
- Typically feature lower premiums than some other plan options
Selecting between ten plans can feel daunting; but it doesn’t have to be. Medicare has published an in-depth guide to the selection process so that potential policyholders don’t need to feel in the dark as they make decisions.
Because there are such a variety of choices and benefits, it’s best to consult with a professional before taking the plunge and purchasing a policy. Premiums that may be a deal breaker for one individual might be outweighed by the benefits of that same plan for somebody else.
Eight Things to Keep in Mind About Medigap Policies
As you begin to consider purchasing Medigap coverage, Medicare has suggested that you keep a few facts in your mind as you enter the selection and purchasing process:
- Medigap policies require that you have Medicare Part A and Part B
- Medigap policies differ from Medicare Advantage Plans
- The latter provide a way to get Medicare Benefits
- Medigap policies only supplement your original benefits
- In addition to your normal monthly premiums, you’ll pay a private insurance company monthly premiums for Medigap
- Medigap policies only cover one person
- Any properly licensed insurance company in your state can sell you a Medigap policy
- Any standardized Medigap policy is guaranteed renewable
- Some Medigap policies sold in the past cover prescription drugs; modern policies do not
- If you have a Medicare Advantage Plan, it’s illegal for somebody to sell you a Medigap policy
If you’re interested in learning more about which Medicare Supplemental policy is right for you, call Insurance Connection USA for more information on Medicare Insurance and to get your instant quote. Our knowledgeable and friendly staff are eager to help you ensure that you have the coverage you need; we want you to worry about the things that really matter in life– not your supplemental insurance.