How Medicare Supplements Work

If you are enrolled in Original Medicare, you can use a Medicare Supplement Insurance policy to better support the costs of Medicare. These Medicare Supplements exist to make Medicare coverage a little more affordable for people who frequently rely on their benefits. If you are curious, here is how Medicare Supplement Insurance works.

Medicare Supplement Insurance: What Is It?

Medicare Supplement Insurance, or Medigap, will pay certain hospital bills associated with a Medicare-approved stay. The types of plans available to you will depend on your specific area, although there are ten standard plans for you to choose from. Each plan offers somewhat different benefits, though there are only a select number of benefits to choose from.

The level at which your Medigap plan will cover those expenses varies as well. Some plans cover 0% of a particular category of coverage, while others cover the entire amount. For instance, Plan B covers Part A deductibles entirely, while Plan A doesn’t offer any coverage of the Part A deductible. Needing a benefit and not having it can be a real pain, so make sure you learn which benefits you need and strive to find them.

Different Medigap Plans

Here is a breakdown of what each Medigap plan has to offer:

  • Plan A: The most basic plan, which covers the 20% of costs that Medicare doesn’t pay for outpatient health services. It’s got other minor benefits, but they aren’t too important. 
  • Plan B: This plan has similar benefits to Plan A, in that it covers the same 20%, but Plan B will also take on your hospital deductible. 
  • Plan C: Arguably one of the most comprehensive Medigap plan, Plan C covers all out-of-pocket medical costs exceeding the Medicare-approved amount.
  • Plan D: Most benefits are offered by Plan D, except this plan also excludes Part B deductibles.
  • Plan F: This plan has been the best-selling option for a long time, as it covers every single cost outside of the Medicare-approved amount. This includes excess charges.
  • Plan G: This plan is nearly parallel to Plan F, except Plan G is more competitive than F in many markets. 
  • Plans K, L, and M: These are partial benefits packages that offer 50-75% of most items on the policy. Though, each of these plans are rarely sought even by people who can find them. 
  • Plan N: This plan lowers premiums in exchange for you agreeing to pay copays when you visit a doctor and go to an emergency room. Though, excess charges won’t be covered which is a detriment to many customers. 

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Shop Medigap Plans

You can definitely find Medigap coverage in your area, but wouldn’t it be easier with some help? Give us a call to learn more about your options.