Medicare Supplements

What Are Medicare Supplements

Medicare Supplement (Medigap) plans are offered by private insurance carriers to help fill the “gaps” that Original Medicare leaves behind. These holes may include some or all Part A deductibles and Part B deductibles and coinsurance. Traditional Medicare does not have a maximum out-of-pocket limit, and this is where Medicare Supplements shine.

 

If you want to keep your Original Medicare benefits and get additional protection against that 20% that you’d normally be responsible for, you should look at your options for a Medicare Supplement policy. You just must be enrolled in Parts A and B, then you’re eligible for a Medigap plan.

Medicare for Cheap

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How Are Medicare Supplement Plans Standardized?

After an initial “Wild West” period, the government standardized Medicare Supplement plans, naming them A-N. A table comparing them all can be found here. The key differences are in how much they lower your out-of-pocket costs and the premium you pay to the insurance company.


Since states have also gotten into the act of regulating Medigap plans through their insurance department, some aspects of some plans may be unique to your state. Your best guide is to use a Medicare insurance agent who represents multiple companies and can help you make an informed decision.


In addition, we’ll look at Medigap companies with a good historical track record of having lower premium increases. The last thing you want is to pick the wrong company with a teaser rate and then the premiums skyrocket later.

What Are the Plans?

We like to focus on Medigap Plans F, G, and N. Plans C and F are not available for new Medicare enrollees as of January 1, 2020, because they cover the part B deductible, which the Department of Health and Human Services decided was a perverse incentive. Keep that in mind when choosing plans — if you’re new to Medicare this year.

 

Plan F covers all costs of a Medicare hospitalization under part A, plus an additional 365 days after part A benefits are used up. It covers all part B deductibles (for those eligible before January 1, 2020) and co-payments, plus three pints of blood, a skilled nursing facility, and hospice. Foreign travel 80%

 

Plan G covers the same items as Plan F, except for the Part B deductible ($203 in 2021), which you must pay. It has no out-of-pocket limit.

 

Plan N covers the same charges as Plan G, except for a $20 co-payment on office visits and the Part B deductible, and a $50 charge for emergency room (ER) visits that do not result in hospital admission. It has no out-of-pocket limit.

 

You can find more information about choosing a Medigap policy here.

Plans benefits table — Fort Wayne, IN — Medicare for Cheap

When Can I Enroll?

It’s best to purchase a policy during your Medigap Open Enrollment Period (OEP). This window lasts for six months and starts on the first day of the month when you’re both 65 and older. It’s also possible with some companies to sign up for a plan 6 months prior to aging into Medicare but it will have an effective date beginning with your Part B effective date. Some people have group coverage for themselves and/or their spouses and when that coverage ends, you’ll have an opportunity to enroll in a Medigap plan without a penalty.

 

During your Medigap open enrollment or special enrollment period, you normally get better rates and have more options among policies. Also, a carrier can’t use medical underwriting to determine whether to accept your application. In other words, the carrier can’t do any of these things because of your health issues:

 

  • Refuse to sell you any policy they offer
  • Charge you more for a policy than they charge somebody with no health problems
  • Force you to wait for coverage to begin (except as explained below)


The insurance carrier might make you wait for coverage affiliated with a pre-existing condition. Sometimes, the carrier can say no for up to six months, which is called a pre-existing waiting period. After six months, the policy will cover the condition.


Note: Medicare Supplement rules may vary per state.

Get All Of Your Options

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