Medicare Supplement plans cover millions of Medicare beneficiaries. Also called Medigap plans, these policies help pay for your portion of Medicare costs, such as your deductible and coinsurance. Medicare supplement insurance plans are very common among people who want little to no copays when they receive healthcare services. These plans are available in all 50 states.
If you’re new to Medicare, it may surprise you that Medicare only covers 80% of your Part B costs. The remaining 20% can be burdensome if a serious illness emerges. Medicare supplement plans pay that 20% for you, among other items. Essentially, this insurance gives seniors peace of mind by removing the cost-sharing responsibility.
The agents at Cornerstone Senior Advisors specialize in helping you find the best Medicare supplement for your needs. But first, it helps to know how the process works and what the different policies cover.
How Do Medicare Supplements Work?
- Your doctor performs a medical service and bills Medicare
- Medicare pays the accepted portion of the bill and sends the excess amount to Medigap
- Your Medigap plan pays the excess amount according to the plan’s terms
Benefits of a Traditional Medicare Supplement Policy
Supplemental policies were designed to pay outpatient expenses for you. As a result, you don’t have to worry about how much every medical visit will wind up costing you. Some of the main benefits of a traditional Medicare supplement policy are:
- Freedom to select your own doctors and hospitals
- No referrals required to visit a specialist
- Predictable out-of-pocket costs for Medicare-covered services
- Nationwide coverage! You can use it anywhere in the country
- Guaranteed renewability – The insurer can never discharge you or change your coverage because of a health condition.
- No claims paperwork – Medicare supplement carriers have crossover filing with Medicare. When your provider files a claim with Medicare, the claim is automatically filed with your supplement carrier, too.
Also, during your one-time open enrollment period, you’re guaranteed the right to buy a Medicare supplement plan.
The Different Medicare Supplements Plans
Each Medicare supplement plan has a letter, A – N. Each plan letter offers a different group of benefits. However, every plan is required to have the same standardized coverage no matter which insurance carrier you select. Below, we briefly list the 10 standardized Medicare Supplement (Medigap) plans.
Medigap Plan A
Insurance carriers are required to offer Medigap Plan A, which is the most basic of the 10 Supplement insurance plans. It covers the fewest benefits.
Medigap Plan B
Medigap Plan B offers similar benefits to Plan A. It also covers (Original) Medicare Part A hospital deductible.
Medigap Plan C
Plan C covers nearly all of Original Medicare’s copayment requirements, minus Part B’s excess charges.
Medigap Plan D
Plan D is a middle ground option between the premium cost and the provided coverage. It has more coverage than A and B, but plans F and G have greater benefits.
Medigap Plan F
Plan F covers all of the gaps and leaves you with nothing out of pocket. It’s one of the most popular Medigap plans.
Medigap Plan G
Plan G is also very popular. With this plan, you agree to do some cost-sharing in exchange for a lower monthly premium.
Medigap Plan K
Medigap Plan K covers Original Medicare’s hospital deductible and 50% of coinsurance expenses. In 2022, the maximum out-of-pocket limit for Plan K is $6,620.
Medigap Plan L
Plan L covers a share of your out-of-pocket expenses left over by Original Medicare. In 2022, the maximum out-of-pocket limit for Plan L is $3,310.
Medigap Plan M
Plan M provides a lower premium in exchange for you paying a share of your Original Medicare deductibles.
Medigap Plan N
Plan N is one of the most popular Medigap plans. Similar to Plan G, you will pay for a few things yourself in exchange for lower premiums.
Medigap Plans F and G can also be sold with new high deductible options. An insurance agent who specializes in Medicare supplemental insurance can help you determine which plan best suits you.
Find the Proper Medicare Supplemental Insurance
When you purchase your coverage directly from an insurance carrier, you forfeit many benefits.
Purchasing through Cornerstone Senior Advisors costs the exact same. Plus, we provide first-rate service and ongoing support for our policyholders. For Medicare Supplement quotes or for more information, give us a call at (316) 260-3331.