What are Medicare Supplements?
Medicare Supplements, also known as Medigap plans, are sold by private insurance companies to help you cover the out-of-pocket costs left behind by Medicare. Think of them as a secondary insurance plan, with Original Medicare (Parts A and B) acting as your primary insurance.
When you have a Medicare Supplement plan, Original Medicare pays on your medical claims first, up to the limits set by those benefits. Then, your Medicare Supplement plan kicks in and pays for some or all of what’s left. The amount it picks up will depend on which Medicare Supplement you have.
Medicare Supplements Plans
The ten Medicare Supplements are labeled with an alphabet letter. They include Plans A, B, C, D, F, G, K, L, M, and N. Plans F and G also have high-deductible versions, which are often referred to as High-F or High-G.
What do Medicare Supplements cover?
Medicare Supplements cover any service, treatment, or procedure that has been approved by Medicare. As long as it’s covered by Part A or Part B, it will also be covered by your Medicare Supplement plan.
Part A offers coverage for hospitalizations. An easy way to remember what Part A covers is to think of it as your room and board coverage for any inpatient stays in a hospital or skilled nursing facility.
Part B offers coverage for outpatient medical treatment. This may be things like doctor’s office visits, lab work, imaging, surgeries, durable medical equipment, and preventive services like vaccines and screenings.
Both Part A and Part B have out-of-pocket costs. You’ll be responsible for deductibles, copayments, and coinsurance expenses. Your Medigap plan will pick up a majority of these costs. For example, if you have Plan G, your only out-of-pocket cost is the Part B deductible.
One question we often get asked is which providers accept Medicare Supplement plans. As long as your provider accepts Original Medicare, they’ll accept your Medicare Supplement plan. It does not matter which company you buy the plan from, as there are no provider networks. This is one of the benefits of having a Medigap plan instead of a Medicare Advantage plan.
What is NOT covered by Medigap?
To put it simply, if it’s not covered by Parts A or B, it’s not covered by your Medicare Supplement plan. However, it’s sometimes surprising when you learn about some of the things that aren’t covered by Original Medicare, so it’s important to be aware of where you might have gaps in coverage.
Prescriptions: While there are a few intravenous medications that will fall under Part B, the majority of prescriptions are not covered by Original Medicare. If you have to go to your pharmacy (or order them by mail), your medications likely are not covered. Instead, you’ll need to enroll in a separate Part D prescription drug plan.
Part D plans are also sold by private insurance companies. Their costs and benefits will vary by plan, and you’ll likely have many to choose from. By working with a Medicare advisor at Bobby Brock Insurance, you’ll be able to choose the plan that works best for your current medication list.
Dental, Vision, and Hearing
Original Medicare does not cover any routine or preventive treatment for dental, vision, and hearing services. It will cover more serious conditions like glaucoma and macular degeneration but lacks coverage for the more basic services that most of us need.
Most beneficiaries choose to enroll in a Dental, Vision, or Hearing (DVH) insurance plan to get help paying for these costs. You are not penalized for not having a DVH plan, but be prepared to pay out-of-pocket if you don’t have a policy in place.
Long-Term Care
Many people are surprised to find out Medicare doesn’t cover long-term care. This includes help with activities of daily living (ADLs), such as bathing, eating, dressing, using the restroom, and transitioning from beds and chairs. You can receive long-term care help at home, in a nursing facility, or in an assisted living community.
The cost of long-term care is significant, often costing tens of thousands of dollars per month. To protect your retirement assets and get the quality of care you deserve, it’s wise to invest in a separate long-term care insurance plan.
Medicare Insurance Companies
Medicare Supplement Plan Comparison – There are 10 Medicare Supplement Insurance plans lettered A through N. Each plan differs in the amount of coverage provided for the “gaps” left behind by Original Medicare.
Medicare Supplement plans, also known as Medigap plans, are offered by private insurance companies licensed by Medicare. Each is required by Medicare to have standardized coverage and plan letters no matter which insurance company you purchase them from. The only difference you’ll find among plans is the price of the premium.
We have broken down the coverage of each Medigap plan below so you can make an informed decision about your healthcare coverage.
Medicare supplement companies we work with:
- Aetna
- AARP
- Cigna
- Humana
- Manhattan Life
- Mutual of Omaha
