What are Medicare Supplement Plans?
Medicare Supplements Plans are also known as Medigap Insurance. They are health insurance plans, sold by private insurance companies.
In exchange for a monthly premium, the plan pays some or all of what Medicare doesn’t pay Medicare Part A (Hospital Insurance) and Medicare Part B ( Outpatient and Doctors Visits), only cover about 80%. The plans are standardized by letters and each plan letter refers to a plan you can purchase and what the coverage is. The chart shows which Medicare A and B benefits the plan covers that Medicare doesn’t cover. For example, Plan F is the most comprehensive since it pays everything not covered by Medicare. .
How do Medicare Supplement Plans Work?
If you have a policy, Original Medicare first pays its share for your care, and then your Medicare Supplement pays all or part of the remaining costs, which can include deductibles, coinsurance and copayments.
Make sure you can afford the monthly premium before you enroll in a Medicare Supplement Plan. Remember that you only need a Medigap plan if you want to keep Original Medicare and enroll in a separate drug plan. If you want to enroll in a Medicare Advantage plan, you can not enroll in a Medigap plan.
When to Enroll in Medicare Supplement Plans?
If you enroll when you first turn 65 and have Medicare Parts A and B, you will be in your Guaranteed Issue period, the rates will be lower, and you will not be medically underwritten by the insurance company. If you enroll after leaving employer coverage, you will have an Open Enrollment Period to apply without having to answer medical questions. Otherwise, you will have to answer medical questions and you may not be accepted.