Medicare Supplements are designed to work with Original Medicare. Supplements are secondary insurance which means they pay after Medicare pays. These plans help pay for eligible expenses Medicare doesn’t pay, such as co-insurance and deductibles.
Medicare Supplement Insurance is insurance you purchase from private insurance companies to cover the gaps. Depending on where you live, you have 10 plans to choose from: A, B, C, D, F, G, K, L, M, and N. They each have different benefits and different premiums. The Medicare booklet “Choosing a Medigap Policy” printed annually by CMS concisely explains these plan differences. To receive a free copy, please complete the ‘Email Us’ below.
Medicare Supplements are standardized. An F plan from AARP has the same benefits as an F Plan from Blue Cross, Cigna, Aetna, Mutual of Omaha, or any other company. The only difference is premium, service to the policyholder, and strength of company. Medicare Supplements give you freedom to choose your own doctor, hospital, and specialist without any network concerns.
Want to know how much your medical expenses will be each year? Don’t want to hassle with networks, co-pays, and out of pocket expenses? Then a Medicare Supplement could be the right choice for you.
For example, the F plan generally pays 100% of all Medicare approved expenses, so your out of pocket cost annually will be your monthly premium times twelve.
The G plan is very similar to the F plan, except you must pay your own part B annual deductible which this year is $147. So you annual out of pocket costs will be your G plan premium times twelve plus the $147 deductible.
Remember, this is a “supplement” to Medicare. Medicare pays first and your supplement pays the remaining balance. If Medicare does not approve or cover a charge, then Medicare won’t pay and neither will your supplement.
Medicare Supplements can be changed at any time of the year as long as you can be underwritten by answering the company’s health questions. If you want to stay with your current supplement plan, there is nothing for you to do. It won’t stop until you tell it too.
Medicare Supplements do not include prescription drug coverage. Therefore if you want prescription drug coverage, you need to enroll in a Medicare Part D Plan, also known as a PDP (Prescription Drug Plan).
For more information, refer to the tab on Medicare Prescription Drug Plans.