Medicare supplements, also known as Medigap, are additional insurance plans that can help pay for items like co-pays and deductibles that aren’t covered by general Medicare. Some supplement policies cover extra services such as medical care when traveling outside the country. These plans can be a good way to keep annual out-of-pocket medical expenses down and give seniors the peace of mind in knowing that most or all of their medical bills will be paid.
In order to enroll in a supplement plan the patient must have Medicare Part A and Part B. The policy can then be purchased from any licensed insurance company within the state. A monthly premium will be paid to this company, in addition to the monthly premium already being paid for Medicare Part B. A Medigap policy only covers one individual, separate policies must be purchased for each person. Even if you have health issues, all standardized supplement policies are guaranteed to be renewable. This means as long as you pay your monthly premium, your policy may never lapse or be taken away from you regardless of the amount of health claims you incur. These plans do not include prescription drug coverage.
The four most popular Medicare supplements are Plan F, Plan G, Plan C, and Plan N.
Medicare Supplement Plan F
Plan F is the most comprehensive and covers the following expenses
- Medicare Part A deductible for hospital stays
- The Part B deductible for outpatient expenses
- The 20 percent coinsurance that Medicare Doesn’t pay
- Up to 100 days in a skilled nursing facility
Medicare Supplement Plan G
Plan G is very similar to Plan F except for one difference. With Plan G you must pay the annual Part B deductible yourself out of pocket each year. This results in lower monthly premiums and is a better option financially for almost everyone
Medicare Supplement Plan C
Plan C covers Medicare Part A deductible for hospital stays and the Part B deductible for outpatient expenses, as well as a skilled nursing facility and emergency medical help while traveling. However, Plan C does not cover Part B excess charges.
Medicare Supplement Plan N
Plan N is the most lightweight of the four plans. It still covers skilled nursing facilities, emergency medical help, and the Part A deductible for hospital stays. It does not cover the Part B deductible for outpatient expenses or Part B excess charges. As well with a Plan N you will have up to a $20 copayment for doctor’s visits after you meet the Part B deductible each year. There is also a $50 co-pay if you visit the emergency room but are not admitted.
So Which Medicare Supplements Are Best?
At first glance for many people it seems that 100 percent coverage such as in a Plan F means the best choice. While this coverage is outstanding and leaves you with no medical bills, you also must pay a higher premium for it. What if you are on a limited income, yet need great coverage? Or perhaps you’re coming off a Medicare Advantage plan and you’re used to co-payments and deductibles and don’t mind paying them, but wish to have a lower premium each month?
These are the questions you must ask yourself. If getting no medical bills is worth the higher premium to you then plan F might be the way to go. If you don’t mind paying a small deductible, especially if it means saving your money then Plan G is a great option. For people who wish to save even more and don’t mind possibly having to pay co-pays Plan N fits the bill nicely.
How To Shop for a Plan
All insurance companies offer the exact same benefits within each plan letter. The difference between different companies really comes down to the price of the plan and the stability of the company. To Get instant quotes on Medicare Supplements in your area simply enter your zip code below.