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Best Medicare Supplement
Choosing the best Medicare Supplement is a largely subjective matter because it depends on what a person needs and how much he or she can spend in terms of monthly premiums. In order to understand and select the right one for you, the first step should be to know what each of the standardized Medicare Supplement policies offer and then compare them to find out which one serves you best.
Original Medicare takes care of plenty of health care services and products, but the federal government’s manpower and budget limitations still leave gaps in their coverage. Medicare Supplements, also called Medigap, offer several options each with a different combination of cost coverages, so that senior citizens end up with 100% zero spending in certain cases.
The 10 Medicare Supplement Plans
Medigap plans are sold by private insurance agencies, though the benefits included in each are standardized regardless of the provider and location. All of such policies are required to comply with state and federal laws so that all citizens are protected. The basic elements of every plan must be included, but the private insurer may have a different pricing based on added benefits and location.
Remember that you cannot apply for a Medicare Supplement if you are not already a holder of Original Medicare Part A and Part B. When you choose a Medigap plan, know that you will be paying a monthly premium for such policy, in addition to the monthly fees you are paying for your Part B coverage.
Not all 10 Medicare Supplement plans are available with every insurance provider or state, although insurers are required to make at least Plan A available. If they offer other Medigap policies, they should also offer Plan C or Plan F to those who have already had Medicare and either Plan D or Plan G to those who are new members.
Benefits |
A |
B |
C |
D |
F* |
G |
K |
L |
M |
N |
Part A coinsurance and hospital expenses
(up to 365 days after Medicare benefits are used up) |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
Part B copayment or coinsurance |
100% |
100% |
100% |
100% |
100% |
100% |
50% |
75% |
100% |
100% |
First 3 pints of Blood |
100% |
100% |
100% |
100% |
100% |
100% |
50% |
75% |
100% |
100% |
Part A hospice care copayment or coinsurance |
100% |
100% |
100% |
100% |
100% |
100% |
50% |
75% |
100% |
100% |
Skilled nursing facility care coinsurance |
x |
x |
100% |
100% |
100% |
100% |
50% |
75% |
100% |
100% |
Part A deductible |
x |
100% |
100% |
100% |
100% |
100% |
50% |
75% |
100% |
100% |
Part B deductible |
x |
x |
100% |
x |
100% |
x |
x |
x |
x |
x |
Part B excess charges |
x |
x |
x |
x |
100% |
100% |
x |
x |
x |
x |
Foreign travel emergency expenses
(based on plan limits) |
x |
x |
80% |
80% |
80% |
80% |
x |
x |
80% |
80% |
Notes:
- Out-of-pocket limit in 2019: $5,560 for Plan K and $2,780 for Plan L
- Plan F is also available as a High-Deductible plan. Policy holders must pay for Medicare-approved expenses up to a $2,300 deductible amount (2019) before Medigap pays anything.
- Plan N pays Part B coinsurance in full, except for a $20 copayment for certain clinic visits and a $50 copayment for emergency room visits that do not end up in a hospital admission.
Important Things To Remember About Medicare Supplements in 2019 Onward
Effective January 1, 2020, Medigap plans sold to new Medicare members will not longer cover Part B deductibles. That said, Medigap Plan C and Plan F will no longer be available after such date. If you have either plan prior to January 1, 2020, you can still keep it. People who are considered “new” to Medicare are those who are turning 65 years old on or after the said date.
Effective June 1, 2020, the benefits of Plan D and Plan G will be different from those who purchased the same policy before the mentioned date.
Medigap Plans E, H, I, and J are not longer being sold, but you can still keep any of these plans if you already have one.
How Medicare Supplements Are Priced?
Insurance providers decide the pricing (or premiums) for the Medigap plans that they offer. It is important to know how the insurer you are eyeing sets its rates because they can change in the future. In general, Medigap policies are rated three ways:
- Community-rated or no-age rated
This means that premiums are the same regardless of your gender or age. Fees may increase as a factor of inflation in the future, but never because of age.
- Issue-age rated or entry-age rated
This means that premiums are based on your age at the time you purchased the Medigap plan. Fees are lower for those who buy when they are younger and these will not change with age. They may increase due to inflation in the future.
- Attained-age rated
This means that premiums are based on your current age and that these will increase as you get older. Fees are lower for younger buyers but they will rise with age. Thus, if you purchase the lowest price at the start, you might eventually have the most expensive policy as the years pass by.
Other pricing factors for Medigap plans may include special discounts for those who pay early, non-smokers, married people, and more. Other insurance providers also give special rates for those who choose to pay via electronic funds transfer and those who acquire multiple policies from the same company.
The price can also be different (and become much higher) if you purchase your Medigap policy outside of the Open Enrollment Period. During this time, the insurance provider will be allowed to impose medical underwriting procedures and can, thus, charge higher premiums if you have a pre-existing health condition.
Choosing the Best Medicare Supplement: Questions To Ask
Are you looking for the maximum coverage available for all services?
If you are looking for the maximum coverage available, Medigap Plan F might be the best choice as it provides the most comprehensive coverage. Plan F covers 100% of all Medicare Supplement benefits, plus 80% of approved foreign emergency care costs. Plan F also has a High Deductible version, which comes with a lower premium payment, although it will not provide coverage until the annual deductible is met. For 2019, the deductible amount is $2,300.
Are you looking for help with Medicare Part B expenses?
If you are having trouble meeting your Medicare Part B payments, Medigap Plan C or Plan F may be the best option. Both will help shoulder Part B deductible expenses and Plan F will also take care of Part B excess charges. Other Medigap policies also provide some degree of coverage for Part B: Plan K shoulders 50%, Plan L shoulders 75%, and Plan N shoulders 100% (except a $50 emergency room copay or a $20 clinic visit copay).
Are you looking for a policy that comes with an out-of-pocket limit?
Medigap Plan K or Plan L provides out-of-pocket yearly limits. For 2019, Plan K offers $5,560 while Plan L offers $2,780.
Are you looking for a plan that will let you save on out-of-pocket expenses and premiums?
Medigap Plan G charges a mid-range monthly premium but provides all Medicare Supplement benefits (except Part B deductible expenses).
Are you always traveling?
If you travel out of the United States often, then you want a Medigap policy that offers foreign travel emergency benefits. Medigap Plan C, D, F, G, M and N offer 80% coverage of qualifying emergency care abroad. The coverage starts when you meet the annual deductible. You will have coverage on the first 60 days of travel for certain services that Medicare does not otherwise shoulder, with a $50,000 lifetime limit.
How To Buy A Medicare Supplement
After deciding on the best Medicare Supplement that will meet your needs, the next step is to buy it. Find out which insurance providers sell your preferred policy within your state of residence and then give them a call or do your research online to compare costs. Once you have settled on a provider, it’s time to make your purchase.
If you are still unsure about the best Medigap policy for you, you may speak with our expert Medicare Supplement advisors who will gladly help lay out all your options based on your current health status, future health expectations, lifestyle, age and budget. Get in touch with us at 1-800-791-0150.
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