If you’re approaching your 65th birthday or have a qualifying disability, you may be eligible for Medicare. While this federal health insurance program covers a portion of your healthcare costs, there are still “gaps” in coverage that you may need to pay out-of-pocket. That’s where Medicare Supplement plans, also known as Medigap, come in. In this guide, we will help you understand what Medicare Supplement plans are, how they work, and how to choose the right plan for your needs.
What are Medicare Supplement Plans?
Medicare Supplement plans are private insurance plans that help cover the “gaps” in Original Medicare. These plans cover expenses such as deductibles, coinsurance, and copayments. There are 10 standardized Medicare Supplement plans, labeled A through N, each with different levels of coverage. It’s important to note that Medicare Supplement plans only work with Original Medicare, and not with Medicare Advantage plans.
How to Do Medicare Supplement Plans Work?
Medicare Supplement plans work alongside Original Medicare. When you visit a healthcare provider, Medicare will pay its portion of the bill first, and then your Medicare Supplement plan will cover the remaining costs, depending on the plan you have. You will pay a monthly premium for your Medicare Supplement plan in addition to your Medicare Part B premium.
Choosing the Right Medicare Supplement Plan
Choosing the right Medicare Supplement plan can be overwhelming, but it doesn’t have to be. Here are some factors to consider:
Consider your healthcare needs
Consider the healthcare services you currently use or may need in the future. Are you generally healthy, or do you have chronic conditions that require regular medical care? Depending on your health status, you may need a plan that offers more coverage.
Compare costs
Medicare Supplement plan premiums vary depending on the plan and the insurance company offering it. It’s important to compare the costs of different plans to find one that fits your budget.
Consider coverage
Different Medicare Supplement plans offer different levels of coverage. Some plans cover more out-of-pocket costs than others. Consider the benefits offered by each plan and choose one that meets your specific needs.
Consider customer service
Consider the reputation of the insurance company offering the plan. Read reviews from current and former customers to see if they have good customer service. If you have questions or concerns about your plan, you want to make sure you can get the help you need.
Check availability
Not all Medicare Supplement plans are available in every state. Check which plans are available in your state before making a decision. If you travel frequently or spend time in another state, you may want to consider a plan that offers nationwide coverage or out-of-state doctor visits.
Understand guaranteed renewability
Medicare Supplement plans offer guaranteed renewability, which means that as long as you pay your premiums on time, your insurance company cannot cancel your plan. This can provide peace of mind knowing that you can keep your plan even if your health changes.
Consider pre-existing conditions
If you have a pre-existing condition, you may need to consider a plan that offers more coverage for your specific needs. Some plans may have waiting periods for coverage of pre-existing conditions, so it’s important to ask about this before enrolling in a plan.
Understand the Open Enrollment Period
The best time to enroll in a Medicare Supplement plan is during the Open Enrollment Period. This is a six-month period that begins on the first day of the month that you are both 65 years old and enrolled in Medicare Part B. During this time, you have a guaranteed issue right, which means that insurance companies cannot deny you coverage or charge you higher premiums based on your health status.
Compare plan options
There are many insurance carriers that offer Medicare Supplement plans, so it’s important to compare your options. Some popular insurance companies that offer Medicare Supplement plans include United Medicare Advisors, Humana, Cigna, Aetna, Policy Scout, AARP, Mutual of Omaha, GoHealth, GoMedigap, and Medicare Nationwide Insurance Agency. It’s important to research and compare plans from different carriers to find the best option for you.
Understand treatment flexibility
Medicare Supplement plans offer treatment flexibility, which means that you can choose any healthcare provider that accepts Medicare. This can provide you with more options for your healthcare needs, and may be particularly important if you have a specific doctor or hospital that you prefer.
Consider simple plan options
If you prefer a simple plan with less out-of-pocket costs, you may want to consider Medicare Supplement Plan F or Plan G. These plans offer more comprehensive coverage and may be a good option if you want to minimize your out-of-pocket expenses.
Understand federal Medicare benefits
It’s important to understand that Medicare Supplement plans only cover “gaps” in Original Medicare, and not additional benefits like vision, dental, or prescription drug coverage. If you need additional coverage, you may want to consider enrolling in a Medicare Advantage plan or a separate prescription drug plan.
By considering these factors, you can make an informed decision when choosing the right Medicare Supplement plan for your needs. Remember to compare costs, coverage, customer service, availability, and plan options from different insurance carriers to find the best option for you.
FAQs
- What are Medicare Supplement plans?
- Medicare Supplement plans, also known as Medigap, are private insurance plans that help cover the “gaps” in Original Medicare.
- How do Medicare Supplement plans work?
- Medicare Supplement plans work alongside Original Medicare. When you visit a healthcare provider, Medicare will pay its portion of the bill first, and then your Medicare Supplement plan will cover the remaining costs, depending on the plan you have.
- How do I choose the right Medicare Supplement plan?
- To choose the right Medicare Supplement plan, consider your healthcare needs, compare costs and coverage, check customer service and availability, understand guaranteed renewability, consider pre-existing conditions, and compare plan options.
- When is the best time to enroll in a Medicare Supplement plan?
- The best time to enroll in a Medicare Supplement plan is during the Open Enrollment Period, which is a six-month period that begins on the first day of the month that you are both 65 years old and enrolled in Medicare Part B.
- Do Medicare Supplement plans cover additional benefits like vision, dental, or prescription drug coverage?
- No, Medicare Supplement plans only cover “gaps” in Original Medicare and do not cover additional benefits like vision, dental, or prescription drug coverage.
