What is a Medicare Supplement Plan?
A Medicare Supplement Insurance (Medigap) policy is health insurance sold by private insurance companies which can help pay some of the health care costs that Original Medicare doesn't cover, like coinsurance, copayments, or deductibles.
What You Need to Know About Medicare Supplement Plans:
- You are still part of Medicare: You must have Medicare Part A & B in order to apply for a Supplement Plan.
- Fills the gaps in Medicare: Supplement plans are specifically designed to pay some or all of the deductibles, co-pays, coinsurance, and excess fees that Medicare does not cover.
- Plans are standardized: The benefits from plan to plan are the same from every insurance company. This means that the benefits that plan F provides will be the same no matter which insurance company you choose.
- Prices will vary: Plan premiums for new applicants are based on your age, sex, tobacco use, and location. It is important to shop the market for the lowest premiums for you, especially since each insurance company is providing the same benefits.
- Individual coverage: Medigap Policies only cover one person so if you and your spouse are both looking for coverage you will have to buy two separate policies.
- Guaranteed renewable: Medicare Supplement Plans are guaranteed renewable, which means an insurance company can never cancel your plan due to health conditions as long as you pay your plan premiums.
- No networks: With Original Medicare and Medicare Supplement Plans there are no networks. This means you can use any doctor or hospital in the country that accepts Medicare.
- No referrals needed: Medicare supplement plans do not require a referral to see a specialist. It is your choice to see any specialist in the country who accepts Medicare.
- Drug coverage is separate: Medigap policies sold after January 1st 2006 are no longer allowed to provide drug coverage, so if you would like drug coverage you will have to purchase a Part D prescription drug plan separately.
Most Popular Medicare Supplement Plans
While we do offer every Medicare supplement plan available, there are plans that are more popular based on their benefits and costs. Below is a list of the most popular and top-selling Medicare supplement plans:
Medicare Supplement Plan F
Medicare Supplement Plan G
Medicare Supplement Plan N
10 Standardized Medigap Plans
There are 10 standardized Medigap plans to choose from, and they are identified by letters A through N. They are Plans A, B, C, D, F, G, K, L, M, and N. These plans are sold by many different insurance companies.
Check out the chart below to compare benefits from each Medigap plan.
*Plan F also offers a high-deductible plan in some states. If you choose this option, this means you must pay for Medicare-covered costs (coinsurance, copayments, and deductibles) up to the deductible amount of $2,300 in 2019 before your policy pays anything.
**Plan N pays 100% of the Part B coinsurance. except for a copayment of up to $20 for some office visits and up to $50 copayment for emergency room visits that don't result in an inpatient admission.
***After you meet your out-of-pocket yearly limit and your yearly Part B deductible of $185 in 2019, the Medigap plan pays 100% of covered services for the rest of the calandar year.
All Medigap / Medicare supplement plans with the SAME letter will have the SAME benefits no matter which company sells it. So if you are shopping for Medigap / Medicare supplements, remember...they are STANDARDIZED...cost is usually the only difference!