Selecting a Medicare Supplement plan may seem like a daunting and complicated task, given the various plans and pricing options available. But, with a bit of knowledge, choosing the right plan can be an empowering and positive experience.
By gaining a better understanding of the benefits and costs of each Medicare Supplement plan, you can find the plan that perfectly matches your healthcare needs and budget. Although it may require some time and research, choosing the right plan can ultimately lead to peace of mind, knowing that you have the right coverage in place to support your health and wellbeing.
In this article, we’ll discuss what Medicare Supplement plans are, what they cover, how much they cost, how to compare plans, and how to enroll in a plan. By understanding these key factors, you’ll be better equipped to make an informed decision when choosing a Medicare Supplement plan.
What are Medicare Supplement plans?
Medicare Supplement plans, also known as Medigap plans, are private insurance policies that can be purchased to help cover some of the out-of-pocket costs that are not covered by Original Medicare, such as copayments, deductibles, and coinsurance. These plans are not designed to provide standalone coverage, but instead work alongside Original Medicare to provide more comprehensive coverage and provide financial protection against unexpected medical expenses.
There are 10 standardized Medicare Supplement plans, each labeled with a letter from A to N. The specific benefits and costs covered by each plan can vary, but there are certain standardized benefits that are included in every plan. Each plan is required to offer at least some coverage for the first four benefits on the list, which include Part A and Part B coinsurance, hospital costs, and blood. Other benefits, such as skilled nursing facility care, Part B excess charges, and foreign travel emergency care, are included in some plans but not in others.
Medicare Supplement plans can be a valuable way to reduce healthcare costs and provide financial protection against unexpected medical expenses. However, it’s important to carefully consider the benefits and costs of each plan before choosing one, as the monthly premiums and coverage can vary significantly between plans.
What do Medicare Supplement plans cover?
Every Medicare Supplement plan includes certain standardized benefits, but the specific coverage provided by each plan can vary. Additionally, it’s crucial to understand that Medicare Supplement plans only cover coinsurance after the deductible has been met, unless the plan itself includes coverage for the deductible.
Here is a breakdown of what each Medicare Supplement plan covers:
- Part A coinsurance and hospital costs: This covers your share of the costs for inpatient hospital care after you’ve met the deductible for Medicare Part A. All plans cover 100% of this benefit.
- Part B coinsurance and copayments: This covers your share of the costs for doctor services, outpatient care, and other medical services after you’ve met the deductible for Medicare Part B. Most plans cover 100% of these costs, with two exceptions. Plan K covers 50% and Plan L covers 75%.
- Blood: This covers the first three pints of blood you receive in a medical procedure. Most plans cover 100% of these costs, with two exceptions. Plan K covers 50% and Plan L covers 75%.
- Part A hospice care coinsurance or copayment: This covers your share of the costs for hospice care under Medicare Part A. Most plans cover 100% of these costs, with two exceptions. Plan K covers 50% and Plan L covers 75%.
- Skilled nursing facility care coinsurance: This covers your share of the costs for skilled nursing care after you’ve met the deductible for Medicare Part A. Plan A and Plan B don’t include this benefit. The other plans cover 100% of these costs, with two exceptions. Plan K covers 50% and Plan L covers 75%.
- Part A deductible: This covers your share of the costs for the Medicare Part A deductible for inpatient hospital care. Plan A doesn’t include this benefit. The other plans cover 100% of these costs, with three exceptions. Plan K covers 50%, Plan L covers 75% and Plan M covers 50%.
- Part B deductible: This covers your share of the costs for the Medicare Part B deductible for doctor services, outpatient care, and other medical services. Plans C and F are the only two plans that include this benefit. Both plans cover 100% of these costs.
- Part B excess charges: This covers the additional costs that may result if a doctor does not accept Medicare assignment, which means they may charge up to 15% more than the Medicare-approved amount for a service. Most plans do not cover this benefit but Plans F and G both cover 100% of these costs.
- Foreign travel emergency care: This covers emergency medical care you receive while traveling outside the United States. Plans C, D, F, G, M, and N provide coverage for 80% of the costs of this benefit, but only after you’ve paid a $250 deductible for the year. It’s important to note that these plans also have a lifetime maximum coverage limit of $50,000 for foreign travel emergency medical expenses.
Typically, the more extensive the coverage offered by a Medicare Supplement plan, the higher the monthly premium you can expect to pay. As such, be sure to carefully consider your healthcare needs and budget when choosing a plan, to ensure that you select the best option for your specific situation.
By taking the time to review the benefits offered by each Medicare Supplement plan, you can make an informed decision about which plan is right for you. This can help you save money on healthcare costs by ensuring that you have the coverage you need, while avoiding coverage that you may not need or can’t afford.
How to read a Medicare Supplement Plan Chart
With all of the different plans available to the you, it’s easy to feel overwhelmed with which option is best for you. We’ve personalized our Medicare Supplement Plan Chart in a side-by-side format that easily allows you to see the benefits of each plan.
Below is a short video you can click to watch, that shows Ken Brannigan (founder of Senior HealthCare Solutions) explaining how to read a Medicare Supplement Plan Chart and why its important you understand that choosing the right plan the first time is so important.
How much are Medicare Supplement plans?
The cost of Medicare Supplement plans can vary depending on the plan you choose, where you live, and the pricing method used by the insurance company. In general, the more comprehensive the plan, the higher the monthly premium.
There are three main pricing methods that insurance companies use to calculate the premium for Medicare Supplement plans:
- Community-rated: With this method, everyone who has the same plan pays the same premium, regardless of their age or other factors. This pricing method can be advantageous for people who are older or have health problems because their premiums will not increase as they age.
- Issue-age-rated: With this method, your premium is based on your age when you first buy the policy. This means that if you enroll at a younger age, you may pay a lower premium than if you enroll at an older age. Once you’ve enrolled, your premium generally will not increase due to your age.
- Attained-age-rated: With this method, your premium is based on your current age, which means it will increase as you get older. This pricing method can be the least expensive when you first enroll but can become more expensive as you age.
In addition to the pricing method, the cost of Medicare Supplement plans can also vary by location. The same plan may be offered by different insurance companies at different prices in different areas. It’s important to compare the premiums for the plans available in your area to find the best price.
Another factor that can affect the cost of your plan is whether you qualify for any discounts. Some insurance companies offer discounts for non-smokers or for couples who both enroll in the same plan.
It’s also worth noting that the cost may increase over time due to factors such as inflation, changes in healthcare costs, or changes in the insurance company’s pricing method.
In general, the cost of Medicare Supplement plans can be significant, and it’s important to consider your budget when choosing a plan. However, the coverage provided by these plans can help reduce your out-of-pocket healthcare costs and provide valuable financial protection. By comparing the costs and benefits of different plans, you can find a plan that meets your needs and fits your budget.
How to compare Medicare Supplement plans
When comparing Medicare Supplement plans, it’s important to consider the benefits and costs of each plan. The standardized benefits for each plan are set by the federal government, but the premiums and additional benefits offered can vary by insurance company.
To compare Medicare Supplement plans, you can use a Medicare Supplement Plans Comparison Chart. This chart shows the benefits included in each plan, making it easier to compare them side by side.
When using the chart, consider the following factors:
- Benefits: Consider which benefits are most important to you and which plan offers the best coverage for those benefits. For example, if you know you’ll need a lot of hospital care, look for plans that offer comprehensive coverage for hospital costs.
- Premiums: Consider how much you can afford to pay for the plan’s monthly premium. Remember that more comprehensive plans generally have higher premiums but may also provide better coverage.
- Pricing method: Consider which pricing method is used by the insurance company offering the plan. This can affect the cost of the plan both now and in the future.
- Discounts: Consider whether you qualify for any discounts, such as those for non-smokers or for couples who both enroll in the same plan.
- Additional benefits: Consider any additional benefits offered by the plan. These benefits may not be as important to you as the standardized benefits, but they can provide added value.
Once you’ve identified a plan that meets your needs, it’s important to research the insurance company offering the plan. Look for reviews and ratings of the company’s customer service, claims processing, and overall satisfaction.
It’s also important to understand that you can change your Medicare Supplement plan at any time, but you may be subject to medical underwriting if you do so outside of your initial open enrollment period. This means that the insurance company can use your health status to determine whether to accept your application and at what premium.
By taking the time to compare Medicare Supplement plans and choose the plan that’s right for you, you can save money on healthcare costs and get the coverage you need.
How to enroll in a Medicare Supplement plan
To enroll in a Medicare Supplement plan, you must first be enrolled in Original Medicare. You can then apply for a plan during the open enrollment period, which is the six-month period that begins on the first day of the month in which you turn 65 and are enrolled in Medicare Part B. During this period, you have a guaranteed issue right, which means that insurance companies cannot deny you coverage or charge you a higher premium based on your health status.
Here are the steps to enroll in a Medicare Supplement plan:
- Enroll in Original Medicare: You must be enrolled in both Medicare Part A and Part B to be eligible for a Medicare Supplement plan.
- Determine when to enroll: Your initial enrollment period for Medicare Supplement plans is the six-month period that begins on the first day of the month in which you turn 65 and are enrolled in Medicare Part B. You can enroll in a Medicare Supplement plan outside of this period, but you may be subject to medical underwriting, which means that the insurance company can use your health status to determine your eligibility for coverage.
- Choose a plan: Research and compare the Medigap plans available in your area. Use a Medicare Supplement Plans Comparison Chart to compare the benefits and costs of each plan side by side.
- Contact Senior HealthCare Solutions: Our agency represents over 25 top-rated insurance companies. We make it easy and quick to compare plans and prices in your zip code.
- Apply for coverage: Once you’ve chosen a plan and received a quote, you can apply for coverage. During your open enrollment period, you have a guaranteed issue right, which means that the insurance company cannot deny you coverage or charge you a higher premium based on your health status.
- Pay your premiums: Once your application is accepted, you’ll need to pay your monthly premium to the insurance company. Your premium may vary based on the plan you choose, where you live, and the pricing method used by the insurance company.
It’s important to note that you cannot be enrolled in both a Medicare Advantage plan and a Medicare Supplement plan at the same time. If you enroll in a Medicare Advantage plan, you’ll need to disenroll from that plan before you can enroll in a Medicare Supplement plan. (Pro tip: Always speak with a licensed agent before you cancel current coverage and enroll in a new plan).
In summary, enrolling in a Medicare Supplement plan involves choosing a plan that meets your needs, contacting the insurance company, applying for coverage, and paying your premiums. By enrolling during your open enrollment period, you can take advantage of guaranteed issue rights and avoid medical underwriting.
Conclusion
Medicare Supplement plans can help fill the gaps in your Medicare coverage and reduce your out-of-pocket costs. When comparing plans, use a Medicare Supplement Plans Comparison Chart to see which plan provides the benefits you need and fits your budget. Remember to enroll during the open enrollment period to take advantage of guaranteed issue rights.
Before selecting a Medicare Supplement plan, it’s crucial to comprehend the advantages and drawbacks of each. These policies can provide significant coverage, but they can also be costly, making it necessary to strike a balance between your coverage requirements and your budget. It’s worth noting that some states offer extra safeguards for those enrolled in Medicare Supplement plans, such as the freedom to switch policies at any time.
In summary, Medicare Supplement plans can be an excellent way to reduce your healthcare costs and protect yourself against unexpected medical expenses. By comparing plans using a Medicare Supplement Plans Comparison Chart and enrolling during your open enrollment period, you can find a plan that meets your needs and fits your budget.
If you need help selecting the best Medicare Supplement plan that meets your specific healthcare needs and budget, Senior Healthcare Solutions is here to help. Our team of licensed agents is available to provide expert advice and guidance on the various Medicare Supplement plans available, ensuring that you get the coverage you need at the best possible price.
To speak with one of our Medicare experts, please call us at 866-MEDIGAP (866-633-4427). We are committed to providing personalized assistance and expert guidance to help you make an informed decision about your healthcare coverage. Contact us today to get the help you need to choose the right Medicare Supplement plan for you.
Frequently Asked Questions
How do you choose a Medicare Supplement plan?
When choosing a Medicare Supplement plan, it’s important to consider factors such as your healthcare needs and budget. You should research and compare the plans that are available in your area, using a Medicare Supplement Plans Comparison Chart to compare the benefits and costs of each plan side by side. Consider which benefits are most important to you and which plan offers the best coverage for those benefits. Consider the plan’s premiums and any additional benefits offered.
When can you change Medicare Supplement plans?
You can change your Medicare Supplement plan at any time, but you may be subject to medical underwriting if you do so outside of your initial open enrollment period. Your initial open enrollment period is the six-month period that begins on the first day of the month in which you turn 65 and are enrolled in Medicare Part B. During this period, you have a guaranteed issue right, which means that insurance companies can’t deny you coverage or charge you a higher premium based on your health status. You can also change your Medicare Supplement plan during certain special enrollment periods, such as if you move to a new area or if your plan is discontinued.
How many Medicare Supplement plans are available?
There are 10 standardized Medicare Supplement plans, each labeled with a letter from A to N. The specific benefits and costs covered by each plan can vary, but there are certain standardized benefits that are included in every plan. Each plan is required to offer at least some coverage for the first four benefits on the list, which include Part A and Part B coinsurance, hospital costs, and blood. Other benefits, such as skilled nursing facility care, Part B excess charges, and foreign travel emergency care, are included in some plans but not in others.
Do all Medicare Supplement plans have the same premiums?
No, the premiums for Medicare Supplement plans can vary depending on the plan, the pricing method used by the insurance company, and where you live. In general, more comprehensive plans have higher premiums, but may provide better coverage.
Do Medicare Supplement plans cover dental?
While Medicare Supplement plans don’t include dental coverage, they can be incredibly helpful in reducing out-of-pocket costs associated with medical care that’s not covered by Original Medicare.
What Medicare Supplement plans cover vision?
Medicare Supplement plans and Original Medicare (Part A and Part B) don’t cover routine eye exams, eyeglasses, or contact lenses, except in certain limited situations. However, Medicare Advantage plans usually include vision coverage, in addition to other benefits not included in Original Medicare.
Are prescription drugs covered by Medicare Supplement plans?
No, prescription drugs are not covered by Medicare Supplement plans. If you need prescription drug coverage, you’ll need to enroll in a separate Medicare Part D plan or a Medicare Advantage plan that includes prescription drug coverage.
What Medicare Supplement plans include SilverSneakers?
SilverSneakers is a fitness program that is included with some Medicare Advantage plans, but it is not included in any Medicare Supplement plans. However, some insurance companies that offer Medicare Supplement plans may offer other fitness or wellness programs as additional benefits. It’s important to research the additional benefits offered by each plan to see which ones may be of interest to you.
What is a Medicare Supplement Plan Comparison Chart?
A Medicare Supplement Plan Comparison chart allows you to easily compare the benefits of Medicare Supplement plans in a side-by-side format.
Starting in the far left of the Medicare Supplement Chart below and in the first column, are the core Medicare benefits. You can tell which plan covers which benefit(s) by the check marks in each box.
Example: Plan G covers all Medicare approved service EXCEPT for the Medicare Part B deductible. Compare Plan F vs Plan G vs Plan N now.
What’s the difference between Medicare Supplement and Medicare Advantage plans?
Medicare Supplement plans, also known as Medigap plans, are private insurance policies that can be purchased to help cover some of the out-of-pocket costs that are not covered by Original Medicare, such as copayments, deductibles, and coinsurance. These plans work alongside Original Medicare to provide more comprehensive coverage and reduce out-of-pocket expenses.
Medicare Advantage plans, on the other hand, are an alternative to Original Medicare and provide more comprehensive coverage, often including prescription drug coverage, vision, dental, and hearing services. With Medicare Advantage plans, you generally receive care through a specific network of doctors and hospitals, while with Medicare Supplement plans, you can see any doctor who accepts Medicare.
Watch the short video below to learn more about the differences between Medicare Supplement vs. Medicare Advantage.
Do I need a Medicare Supplement plan if I have other insurance coverage?
If you have other insurance coverage, such as through an employer or union, you may not need a Medicare Supplement plan. However, if your other insurance coverage doesn’t cover all of your healthcare costs or has restrictions on the doctors and hospitals you can see, a Medicare Supplement plan may provide valuable additional coverage.
