Unfortunately, plan costs vary and you need to compare plan pricing. There is a balance between budget and benefit for your healthcare. Medicare Part A and Part B only cover about 80% of your costs. Medicare Supplement (Medigap) plans reduce your out-of-pocket expenses. Medicare Supplement (Medigap) plans are regulated by the Federal Government and there are 10 standardized plans. What does this mean to you? Because the plans are standardized, you need to be sure that you are getting the best priced plan in your area. You need to shop to ensure you get the best rate.
Here are some key items that will affect your cost:
- The Plan You Choose: The plan you choose will determine most of the cost. Plan F has the most extensive coverage and it is also the most expensive. This plan will cover 100% of all Medicare-approved cost at any doctor, hospital or facility that takes Medicare. Plan G is very comprehensive plan and the only difference between Plan F and Plan G is that with Plan G you pay your Part B deductible of $203 in 2021. Plan N is an excellent plan choice and it is a very popular plan because it offers a good balance between protection against catastrophic out-of-pocket expenses and affordable premiums. In some cases, Medigap premiums for Plan N can be up to 40% less than that of Medigap Plan F. With Plan N you pay the Part B deductible of $203 in 2021. Once this is met, you will pay $20 copay at some doctor offices and a $50 copy at the emergency room if you are not admitted. Plan N does not pay Part B excess charges. High Deductible Plan F or Plan G plans offer considerably lower premiums because you will pay a high deductible of $2,370 in 2021. Once you satisfy the plan deductible during a given calendar year, you will be covered 100% for the remainder of the year on all Medicare approved cost.
- Competitive pricing: In some states, Plan G has the best competitive pricing and in other states, Plan F or Plan N is best.
- Household Discounts: Some insurance companies offer a household discounts if you and your spouse both buy insurance from them. There can be other discounts too.