Medicare Supplement Plans (Medigap)
Medicare supplements came into being shortly after Medicare was signed into law. Because you are required to pay for some things, like 20% of outpatient expenses, supplemental policies were created to pay those expenses for you. This allows people to feel less worry over how much each medical visit will end up costing them.
Supplemental insurance for seniors with Medicare is the most predictable back-end coverage that you can buy. You will know exactly what’s covered for every inpatient or outpatient procedure based on which Medigap plan you choose.
Some advantages of a Medicare Supplement Plan:
You can use your Medicare Supplement plan at any provider in the nation that accepts Medicare. This makes Medicare supplements great for travel or for people who live in more than one state throughout the year.
In most states, policies are standardized into plans labeled A through N. All policies cover basic benefits, but each has additional benefits that vary by plan.
Plans A through G provide benefits at higher premiums with limited out-of-pocket costs. Plans K through N are cost-sharing plans offering similar benefits at lower premiums with greater out-of-pocket costs. Some companies may offer additional innovative benefits.
The cost of your plan will depend on a number of factors, such as the type of plan you buy, the insurance company, your location and your age. Premiums vary among insurance companies, but the benefits of each standard Medigap plan are always the same. For instance, a Medigap Plan G policy offers the same benefits no matter which company you buy it from.
IMPORTANT: A standardized Medigap policy is guaranteed renewable, even if you have health problems as long as you pay your premiums on time.
Effective January 1, 2020, plan options C, F and High Deductible Plan F will only be available for purchase by applicants first eligible for Medicare prior to 2020.