Medicare Supplement Plan Comparison

There are no options to the requirement of needing to have Original Medicare to be able to purchase a Medicare Supplement (commonly referred to as Medigap Plans.) Original Medicare represents your primary health coverage and to supplement the gaps in your primary health care you must be enrolled in Original Medicare.

Medicare Supplement policies provide consumer options insuring against out-of-pocket costs that Original Medicare will not cover. There are 10 standardized plans ranging from letters A – N, giving beneficiaries’ options to how much risk they are willing to accept and pay for out of their own pocket. The less risk you are willing to accept (most comprehensive plans) you will find that your premiums will be higher and renewal rates will tend to be higher also.

Each of the 10 standardized policies are labeled with a letter and those individual plans should be compared against one another so you can determine what best fits your healthcare needs and weigh against the economics of affordability. Terms of coverage are outlined in each policy for easy comparison. The Medicare Supplement plans pay one or more of the following common costs, such as Part A and B deductibles, Part A and/or Part B copay and coinsurance, Part B excess charges, Part B Drugs, and Foreign Travel Emergency health care costs. 

If you need to reduce your out-of-pocket health care costs now, here’s what you need to know about Medicare Supplement Insurance. 

Medigap Plan Benefits

Before choosing a Medigap plan, you should learn how to properly compare them. To do this, you should learn what types of benefits are offered in the various plans. 

There are 10 plans currently available, each offering a different range of helpful benefits. All of the plans provide the following benefits:

  • Covered Part A Coinsurance 
  • Covered Part A Hospital Costs
  • Covered Part B Coinsurance or Copayments
  • Covered Part A Hospice Care Coinsurance or Copayments
  • Covered 3 Pints of Blood 

With the benefits listed above, you can save significantly on your out-of-pocket health care expenses. If you want more benefits, some of the more extensive plans offer the following benefits as well:

  • Covered Part A Deductible
  • Covered Part B Deductible
  • Skilled Nursing Facility Coinsurance
  • Part B Excess Charges
  • Foreign Travel Emergencies (up to 80%)

You can use your Medicare Handbook to review Medicare Supplement Plan coverage by letter in one easy snapshot view. Each insurance company must have an Outline of Coverage available for your review of each plan that they offer.  Plan A and Plan G are the only plans that are required to be offered within a company’s portfolio. This is not because they have been determined to be the best plan offerings rather that they represent the most basic coverage (Plan A) and the most comprehensive Plan G for those not grandfathered by birth before January 1, 2020.

Due to MACRA legislation Medicare Supplement plans F and Plan C are only available to those born before January 1, 2020. For those born after January 1, 2020, plan G has the most paid coverage thereby becoming deemed as being the most comprehensive plan coverage for those becoming Medicare eligible at age 65.

Cost Sharing Plans

Medigap Plans K and L only cover a percentage of the costs up to a max out of pocket limit. Max out of pocket for Medicare Supplement Plan L is $3110 and for Medicare Supplement Plan K, it’s $6220. These limits, like many Medicare deductibles and copays, are subject to change annually. Plan K covers 50% of costs up to the limit, while Plan L covers 75% of costs. These are the costs covered by both plans in addition to what was previously mentioned above:

  • Covered Part A Coinsurance 
  • Covered Part A Hospital Costs
  • Covered Part B Coinsurance or Copayments
  • Covered Part A Hospice Care Coinsurance or Copayments
  • Covered 3 Pints of Blood 

Medigap Costs

Medigap plan premiums start off relatively inexpensive, however, over time can take a larger and larger share of a senior’s fixed income. If history repeats itself whatever your cost of premium is today it will usually be about twice that cost in 10 years, all things considered. Premium pricing can be, however, not always (state specific) determined by beneficiaries age, tobacco status, resident zip code and in many states gender. Medical claims of a group’s experience can also influence current and future pricing. Outside of open enrollment or guaranteed eligibility periods premiums can be determined by health conditions of the applicant qualifying for a preferred or standard rating.

Plan G -most comprehensive medigap plan coverage offered to new Medicare enrollees who have just turned 65 on Jan 1, 2020, or later. You will find premiums ranging from $100 – $200 plus per month for a 65-year-old Male depending on the region of the country you are living and whether your state allows applicants to be charged more for tobacco use. As mentioned, some states are gender neutral, and pricing cannot be influenced by gender.

The only difference between purchasing from one company to the next is the premium price you pay.  Please realize some companies intentionally have reduced their initial premiums to attract applicants and have a history of larger rate increases in the years to come. To find the best value on Medigap plans in your area, reach out to an insurance professional now. 

Start Saving On Health Care Costs

You can start saving on your health care costs by purchasing a Medigap plan today. If you need help selecting a plan, you can trust Larry Klein and his associates to help you.