Medicare Supplements are the coverage of choice for over 10 million Medicare beneficiaries. Also referred to as Medigap plans, these policies help pay for your share of Medicare expenses, such as your Part A & B deductibles and co-insurance.
Many people are surprised to find that Medicare covers only 80% of your Part B expenses. The other 20% can be devastating to you financially if a serious illness arises. Medicare Supplements pay that 20% for you, among other things.
About Medicare Supplements
Medicare supplements came into being shortly after Medicare was signed into law over 50 years ago. Because you are required to pay for some things, like the 20% of outpatient expenses and the Part A Hospital deductible ($1,316 in 2017), supplement policies were created to pay those expenses for you. This allows people to have peace of mind about their healthcare without having to worry how much each medical visit will end up costing them.
Some of the primary advantages of a traditional Medicare supplement policy are:
- Freedom to choose your own doctors and hospitals
- No referrals required to see a specialist
- No out of pocket expenses (with Plan F) for any Medicare-covered services
- Nationwide coverage – you can use it anywhere in the United States
Medicare Supplement Comparison
To see a list of all the Medicare supplements available – take a look at our Medigap supplement chart. This chart appears in the “Choosing a Medigap,” booklet published by Medicare itself. The chart details the benefits that are included in each Medicare supplement, which are labelled Plan A – Plan N.
Some of our clients have shared with us that they found Medicare’s booklet to be hard to read. We’ve tried to use simpler terms here on our Boomer Benefits website. Visit our Medicare supplement section to find a detailed explanation of each policy. We have included some examples of how the coverage would pay if you bought that policy.
Some Medicare supplements cover just the 20%, while others pay for your hospital and outpatient deductibles. There are Medigap policies that cover all the gaps, leaving you zero out of pocket. There are others where you agree to do some cost-sharing and in return you get a lower monthly premium. An insurance agent who specializes in Medicare supplements can help you determine which one best suits you.
Why are Medicare supplements so confusing?
Sometimes too many choices is NOT a good thing.
For many years, Medicare supplement policies from different insurance companies were allowed to have different benefits. This made it really difficult for people to compare apples to apples. So in 1990, our federal government standardized the plans. The benefits for a Plan F, for example, must be uniform from one insurance company to the next.
Unfortunately, the problem is that Medicare has Parts and Plans. Since they use letters like A & B in both places, people still get confused.
At Boomer Benefits, we can help you understand exactly what each Medicare supplement plan will cover. We’ll even give you some Medicare basics education if you feel unsure of what your Parts A & B already cover. Just give us a call at (855) 732-9055 for a free consultation today.
If you are new to all this and don’t know much about Medicare supplements yet, begin reading at the link below. we’ll walk you through the definitions.
To continue learning about Medicare supplements, click here: What is a Medicare Supplement?