Medicare supplement insurance, also commonly referred to as Medigap, is a type of insurance that’s sold specifically by private companies. These insurance policies help to pay for some of the costs that aren’t covered by standard Medicare policies.
For instance, a Medicare policy might cover the costs of an entire doctor visit, save for the deductible. A Medigap policy would possibly pay for the deductible that wasn’t covered by your Medicare policy. Some of the primary coverage types that can be provided by a Medicare supplement plan include:
- Hospital costs in the event that you run out of days covered by Medicare
- Skilled nursing facility costs when you run out of Medicare-covered days
- Most additional out-of-pocket expenses
All that’s required of you when selecting one of these policies is to pay the monthly premium for this Medicare supplement plan. You must also have a Medicare Part A and Part B plan. Each plan will differ slightly, so weigh your options before choosing the one you believe is right for your needs.
Why Every Senior Should Have a Medicare Supplement Plan
Medicare supplement plans are largely considered to be essential for seniors who wish to avoid costly expenses that could put a dent into their retirement savings. There are many reasons as to why every senior should have a Medicare supplement plan.
As touched upon previously, a Medicare supplement plan covers most or all remaining charges that have been Medicare approved. As such, if you’re covered by Medicare supplement plan F, the deductible you must pay for Part A and Part B will be covered. Any coinsurance costs from your doctor or hospital will also be paid for. In many instances 100 percent of these remaining costs will be covered.
Medicare supplement plans are also renewable for life if you make sure to pay your premiums, so you can never fear losing the policy due to frequent claims or lifetime maximums. The benefits of the Medicare supplement plan you receive are also locked in if you have the policy.
There are absolutely zero network rules in regards to these plans. If the doctor you’re considering seeing accepts Medicare, your plan will qualify as well. It’s important to note that these Medicare supplement plans don’t cover any Part D prescription drug coverage. Because of this, you’ll still need to select a separate Plan D policy if you require the usage of medications on a regular basis.
Additional Info You Should Know About Medicare Supplement Plans
Since Medicare advantage plans and Medicare supplement plans are so similar, it’s not possible to be on both policies at the same time. However, you can apply for a Medicare supplement plan even during the time when you are covered by a Medicare advantage plan.
You will need to leave the advantage plan by the time that the supplement plan is set to start. The monthly premium you pay for your Medicare supplement plan is in addition to the premium paid for your Part B plan.
It’s important to understand that these Medicare supplement policies only cover one person, so a spouse must purchase a separate policy if they also require one. One of the most beneficial aspects of a Medicare supplement plan is that your policy is renewable even if you begin to suffer from health issues. If you currently have a Medicare medical savings account plan, you will be unable to purchase a Medicare supplement plan until you leave the former. There is a selection of coverage types that aren’t directly covered by a Medicare supplement plan. These include:
- Vision care
- Dental care
- Long-term care
- Hearing aids
Types of Medicare Supplement Plans
There are 10 types of Medicare supplement plans, with the most popular type being that of Plan F. All types include Plans A, B, C, D, F, G, K, L, M, and N. Plan F is the most popular since it provides at least some coverage for all types of Medigap benefits.
These benefits include everything from coverage of Part A and B deductibles to coinsurance for skilled nursing facility care. Each of the ten different Medicare supplement plans cover different Medigap benefits.
The key to finding the one that fits your needs the best is to compare these plans and their premiums. Some insurance companies don’t offer Medicare supplement plans, while others only offer the required plans of A, C, and F. Only choose the insurance company that provides you with the best quotes and the most advantageous Medicare supplement plan.
Jagger Esch serves as the accomplished President and CEO of Elite Insurance Partners LLC (EIP). EIP is ranked in the top 10 Medicare Supplement brokerage firms nationwide. Jagger and Elite Insurance Partners hold licenses in 48 states and work with more than 15 of the most recognized Supplemental Medicare insurance companies nationwide. With a vast knowledge in technology, insurance and customer satisfaction, Jagger and David have created a team of business professionals who are quickly dominating the industry.