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Are you concerned about Medicare costs? Many people are. That’s why most Medicare recipients select a Medicare Supplement plan, also known Medigap insurance, to help cover the “gap” between what Original Medicare pays and what you are expected to pay out of your own pocket. Medigap plans, depending on the level of coverage selected, can cover some or all of your out-of-pocket expenses. Medigap Plans have NO NETWORK and require NO referrals.

If you are on Original Medicare and you have a Medicare Supplemental policy, Medicare will pay its share of the Medicare-approved amounts for covered healthcare costs. Then your Medicare Supplement Insurance Plan pays its share. (Note: Medicare doesn’t pay any premium for a client to receive a Medicare Supplement policy, and some states have a cap on Medicare Supplement premiums.)

What Medigap Plan Should You Choose?

Did you know there are 11 different Medigap coverage options available? The available plans are Plan A, Plan B, Plan C, Plan D, Plan F, Plan G, Plan K, Plan L, Plan M, Plan N, Plan HDF (Plans E, H, I, and J are no longer available.) Out of these plans, the most popular Medicare Supplements are Plan F, Plan G, and Plan N. Another Medigap Plan you may consider is the HDF Plan. Educate yourself on the various options before making your decision on which Medicare supplemental insurance is right for you.

 

The simple answer is that for most folks, one of these three plans will provide the most bank for the buck. As of recent, plan G has become most popular due to low out of pocket costs and competitive premiums. These three Medigap plans made up for 87% of the overall Medigap Plan enrollment in 2015 (according to CSG actuarial).

Plans in this category include:

Medigap plans K and L work a bit different than most other Medicare Supplement insurance. While both plans still help pay for Medicare expenses, these plans share the deductible and coinsurance with the policy holder. Both of these Medigap plans also have an out of pocket limit before paying 100% of Medicare services. Medicare Supplement plans K and L made up for only 1% of the overall enrolled plans in 2015 (according to CSG actuarial).

Plans in this category include:

There is no question about it that Medigap plan F is the most comprehensive Medicare Supplement plan you can purchase. There are $0 out of pocket costs to the policy holder for all Medicare approved services. However, Medicare Supplement plan G is also very comparable, typically much lower premium and the only difference in coverage is the annual part B deductible.

Plans in this category include:

Additional Facts on Medicare Supplemental Insurance:

    • Each standardized Medicare Supplement policy must offer the same basic benefits no matter which insurance company sells it.
    • Cost and rating is usually the only difference between Medicare Supplement Insurance policies with the same letter sold by different insurance companies.
    • In Massachusetts, Minnesota, and Wisconsin, Medigap Plans are designed as “a la carte” plans where consumers can choose specific benefits and design a plan specifically for their needs.
    • Medicare doesn’t pay any premium for a client to receive a Medicare Supplement policy and some states have a cap on Medicare Supplement premiums.
    • Medicare Part C, also known as Medicare Advantage, is offered through private insurance companies as an alternative way to retain insurance.
    • Medigap Plans are not the same as Medicare Advantage Plans (Part C)