Medicare supplement plans, commonly known as Medigap plans, are health insurance policies that provide coverage for the expenses not covered by Medicare. There are 10 different options for a Medicare supplement plan, with each option providing different levels of benefits. When deciding on a Medicare supplement plan, it is important to consider your health and budget needs as well as which option best fits your situation.
There are different options for a Medicare supplement plan:
- Plan A – Covers 40% of an average person’s approved expenses, with no copayments or coinsurance.
- Plan B – Covers 50% of an average person’s approved expenses, with no copayments or coinsurance.
- Plan C – Covers 70% of an average person’s approved expenses, with $20 doctor visit copayments each year (after you’ve met your deductible).
- Plan D – Covers 80% of an average person’s approved expenses, with $40 doctor visit copays each year (after you’ve met your deductible).
Medicare Advantage Plans
Medicare Advantage Plans are also known as Medicare Part C. These plans are available through private insurance companies, and can be purchased in all 50 states. All Medicare beneficiaries are eligible to enroll in a Medicare Advantage Plan, including those who have been denied eligibility due to pre-existing conditions or disability status.
If you are not happy with the coverage offered by your Original Medicare plan, you may want to consider switching over to a Medicare Advantage Plan. This type of supplemental plan may provide more comprehensive health care coverage than Original Medicare alone can provide, including dental care and vision services (depending on which specific plan you choose).
Medigap Plan A – Core Coverage
Medigap Plan A is the most popular Medicare supplement plans, because it covers all of the major benefits that are not covered by Medicare. It’s a must-have for anyone who wants to keep their out-of-pocket costs low.
- Core coverage: Hospitalization; skilled nursing facility (SNF) care; hospice care
- No copay or coinsurance for Part A services required after you meet your annual deductible and coinsurance requirements
- You don’t have to enroll in Medicare Part B to purchase this plan, which means there’s no premium cost
Medigap Plan B – Core Coverage + Hospice Care Part A Coinsurance
Hospice care is a type of medical treatment that helps terminally ill people to live out their final days with as much comfort and dignity as possible. If you receive hospice coverage, it means that the Medicare program pays for a portion of your hospice costs.
Coinsurance is when you pay a percentage of your medical bills after your deductible has been met by Medicare. This can be paid by you or through private insurance if you have one (like through Medigap). The coinsurance amount varies depending on what level plan you choose; some plans have higher percentages than others. The coinsurance amounts are listed in Section III of each plan’s official summary document, which lists all benefits covered under each plan type.
What you pay for with a Medicare supplement plan depends on whether your condition was present before you signed up for the plan or became worse after you joined. If either is true, then your supplemental insurance won’t pay any expenses related to that health problem until six months after you’ve enrolled in one of these plans. Once that time has passed though, all claims are covered at 100%.
Even though each of them have the same name, they all have different benefits and services so you need to know what your needs are before choosing one. Click here to know more.