There are many different Medigap plans that offer Medicare beneficiaries with the most comprehensive coverage available to seniors.
Although, selecting a policy with no help can be intimidating and overwhelming. There are 10 different letter plans ranging from Plan A to N, and each policy has different benefits.
Understanding Medigap Plans
Beneficiaries with Medigap coverage are protected from healthcare expenses more than those with no coverage or coverage from a Medicare Advantage plan. When you know the difference between Medicare Advantage vs Medicare Supplements, you can better understand why Medicare Advantage can end up costing more.
This is because most Medigap plans cover the 20% that Traditional Medicare fails to fund. Additionally, the Part A deductible can cost a beneficiary a couple of thousand dollars during a year of bad health.
Discover the different plans and how they work below.
The Basic Benefits Plan
Medigap Plan A is the basic benefits supplement plan; every insurance company is required to offer this coverage and each plan must have more coverage than the Plan A.
Don’t confuse Plan A with Part A, they’re both very different. Part A refers to Traditional Medicare and covers inpatient care. Plan A is a Supplement to Original Medicare.
Plan A provides beneficiaries with more coverage than Original Medicare. While Medigap Plan A is the most basic plan, it covers 100 percent of four important things.
- Part A coinsurance up to an additional 365 days after Medicare benefits
- The Part A hospice care coinsurance
- First three pints of blood
- The Part B coinsurance
Medigap Plan A and Plan B aren’t ideal for people that need help covering Part A and B deductibles or those looking for coverage on foreign travel emergency costs.
What is the Difference Between Medigap Plans
Each plan must cover the basic benefits found in Plan A. Then, each letter plan offers additional coverage benefits. Aside from benefits, they all work the same way.
First Dollar Coverage Plans
Medigap Plan F is the most comprehensive plan available on the market. Those with Plan F have no out of pocket expenses on covered services. That’s why Plan F is considered a first-dollar coverage plan.
High Deductible Plan F is also considered a first-dollar plan; even with a deductible, beneficiaries’ benefit from a comprehensive plan.
Also, Medigap Plan C offers the first dollar coverage. The only benefit left uncovered on Plan C is the Part B excess charges, which if all your doctors accept Medicare assignment then this won’t even apply.
First dollar plans will be retiring in 2020; however, beneficiaries eligible for Medicare Part B before January 1, 2020, will be allowed to enroll in first dollar coverage at any time.
The Most Popular Medigap Plans
Medigap Plan G will be the most popular Medicare Supplement after 2020. The only benefit beneficiaries need to cover themselves is the Part B deductible.
The Part B deductible is a small annual deductible that beneficiaries only pay once during the year.
Plan G can offer beneficiaries more value than Plan F when the premium for Plan G is at least $200 less than Plan F for the year. This is the case for many Medicare beneficiaries across the United States, Plan G made more sense.
Plan G isn’t going away in 2020; instead, rumors of a High Deductible Plan G have been circling the internet. Hopefully, this option is made for beneficiaries that would have otherwise chosen the High Deductible Plan F.
The runner up for Medigap plan popularity is Plan N. This policy has small copayments for Doctors and Emergency room visits.
Plan N has a lower monthly premium than Plan G because it has slightly lower benefits.
However, if you find a Plan G for less than your Plan N, going through underwriting could be in your best interest. Talk with an agent today about Medigap Plans in your area. You can see how Medigap costs are determined here.
How Much is Medigap Per Month
A Medigap plan can cost anywhere between $50-$300 per month depending on the letter plan you choose.
Cost-Sharing Medigap Policies
A cost-sharing Medigap plan can save a beneficiary a ton of money on premiums; however, it’s not always the best option for those with severe health problems.
The benefits that require cost-sharing include the Part B coinsurance, the Part A deductible, skilled nursing facility coinsurance, the first three pints of blood, and the Part A hospice coinsurance.
It’s important to note that these plans don’t cover the Part B deductible, Part B excess charges or foreign travel emergency. However, both policies cover 100% of the Part A coinsurance.
The Deductible-Sharing Medigap Plan
Medigap Plan M pays half of the Medicare Part A Deductible, making this a deductible sharing plan.
The Part A deductible could be paid multiple times throughout the year depending on why and when you’re hospitalized.
This would be an ideal plan for seniors that are comfortable with occasional cost-sharing when admitted to the hospital.
Other Medigap Plans on the Market
Medigap Plan B offers slightly more coverage than the basic benefits plan, Medigap A. The only benefits Plan B covers that Plan A doesn’t cover is the Part A deductible.
Plan C is different than Part C; Part C is a Medicare Advantage plan.
When Medigap Plan C retires, Plan D will become the next option for new beneficiaries. Medigap Plan D covers everything except for the Part B deductible and Part B excess charges.
Is it Better to Have Medicare Advantage or Medigap
Medicare Advantage plans come with many restrictions, including what doctors you can see. There’s also a higher out of pocket costs. Most beneficiaries end up going back to a Medigap plan after attempting to use their Medicare Advantage plan benefits and finding out the plan doesn’t cover what they needed.
What is the Best Company for Medigap Insurance
There are many companies that offer Medigap plans. Each company has different rating methods, thus giving you different premiums for the same plan. So the best company for Medigap insurance would be the company that offers you the lowest premiums. Regardless of the company you go with, the benefits will be identical per letter plan.
Benefits of Medigap Plans Coverage
The luxury of seeing any specialist you want in the United States that accepts Medicare assignment without a referral, that sounds like a dream. Well, this could be your reality.
With a Medigap policy, beneficiaries will experience high-quality care, first dollar benefits, and hassle-free coverage. As we age our bodies require more health checkups; having the coverage you need when you need it will make life easier.
Enrollment is simple, call one of our licensed Medicare experts at the number above for your FREE quote. Or submit an online rate form today!
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