Medicare Supplement Plans
Medicare supplement plans are also known as Medigap insurance. They help close the coverage gaps in Medicare coverage. They also can save you money by covering more services than Original Medicare and capping your out-of-pocket expenses.
If you see the doctor or visit the hospital frequently, you could face high fees without a Medicare supplement plan.
While you are responsible for paying deductibles, coinsurance, and copayments, lower overall costs defray the monthly premium of the supplement.
Which Medicare Supplements Are Available?
Most states offer eight supplement plans. Medicare requires standardization and non-discrimination. Regardless of which insurer you choose, the benefits and coverage are identical to what every other insurer provides.
Medicare distinguishes between supplement plans and coverage using letters A through N. However, Supplement plans C, E, F, H, I, and J were phased out. Important to note, if you see a Medicare supplement called A, that is not the same as Medicare Part A. They are not the same plans. It can be confusing!
How Does a Medicare Supplement Work?
They help you save money because they can cover coinsurance and deductibles. You pay a premium to a private insurance company, in addition to your Part B monthly fee (and Part A if required).
Some supplements provide moderate coverage for a reasonable price. Other plans offer robust coverage for a higher premium.
If you frequently visit your doctor or a hospital, you should expect higher out-of-pocket expenses. A plan with a higher premium and lower out-of-pocket costs may suit you better.
Because Medicare supplements complement Original Medicare (Parts A and B), you can use the plan anywhere in the US that accepts Medicare-assignment.
Your Medicare supplement automatically renews each year, even if your health declined. The insurer cannot cancel the policy as long as you pay the monthly premium.
Which Supplement Plans Are Available?
Here is a brief overview of the Medicare supplement plans:
*If you get Medicare Supplement Plan F with a High Deductible, you will pay all fees up to a specific annual deductible. After you meet the deductible, Supplement Plan F covers the rest of your Medicare-approved healthcare costs.
Supplement coverage may vary among states. The most popular options are Plan G and Plan N.
What Do Medicare Supplements Not Cover?
Medicare supplements do not cover prescription drugs. You will need to enroll in a standalone Medicare Part D plan separately.
However, if you prefer the "all-in-one" type of plan, consider a Medicare Advantage plan instead of a Medicare Supplement.
Medicare plans only cover one person. If your spouse wants to enroll in Medicare, they must do it individually and buy a separate policy.
How to Enroll
Medicare provides several opportunities throughout the year to enroll.
However, the best time is during your Initial Enrollment Period, even if you have medical conditions. The Initial Enrollment Period starts three months before and ends 3 months after your 65th birthday.
You should sign up for Medicare Part A, hospitalization right away. Most people pay a $0 premium. We also urge you to enroll in Medicare Part B if you do not have other private health insurance. If you postpone registration, Medicare may charge you a late fee.
Once you are enrolled in Medicare Parts A and B, you qualify for a Medicare supplement or Medicare Advantage plan.
How Much Does a Medicare Supplement Cost?
Like other health insurance, Medicare supplements have factor-based pricing. It depends on the type of plan you buy (A, B, G, N, etc.), the insurance company, your location, and your age.
Insurance companies are permitted to charge different premiums. Still, every supplement plan must have identical coverage to what other insurers provide. For example, Medigap G policy offers the same benefits regardless of which insurance company sells it to you.
How Do I Choose a Plan?
AARDY's Medicare experts can take you step-by-step through the enrollment process. We will help you find the best plan for your circumstances and help you save money. Tell us what you need, and we do the shopping around for you. Of course, you're never obligated to enroll.
AARDY is the nation's fastest Medicare insurance marketplace. You can compare your Medicare options to find the one that best fits your needs.