What are Medicare Supplement plans?

A Medicare supplement is a type of health insurance sold by private insurers to cover the gaps in Medicare. This is why we refer to the plans as “Medigap Plans.”

Medicare supplement plans pay for the costs that normally Medicare would pass on to you like coinsurance, copayments, and deductibles. You must pay for these when accessing medically-approved services.

If you have a supplement policy, Medicare will first pay its share of your medical expenses. Then your policy will step in and pay its portion, typically the remainder of your bill. However, this can vary depending on which policy you choose from the standard offered plans.

Without question, Original Medicare with a Medigap plan gives you very comprehensive coverage. The primary differences are that with Medigap plans, you can see any doctor that accepts Medicare anywhere in the nation. Medigap plans also have more coverage in that Medicare pays 80% and your Medigap plan 20%, leaving you with little to no money out of pocket, plus you won’t have the repetitive copays that you will on a Part C plan. Medigap plans also don’t change their benefits from year to year. This means they don’t require as much homework from you. You won’t have to annually review the upcoming benefit changes like you will on an Advantage plan. However, Medigap plans do not include Part D coverage, so you will need to buy a separate Part D policy. They also do not offer any routine dental, vision or hearing while some Medicare Advantage plans may at least have a little bit of this. One other big difference is that Medigap plans come with higher monthly premium costs which typically increase either once or twice per year, every year that you own the policy. So costs will continue to rise every year, virtually guaranteed.

Yes, you must first enroll in both Medicare Parts A and B before you are eligible to add on an Advantage plan. This is true even if the Advantage plan itself has a $0 premium. You will still pay your Part B premium to Medicare every month.

Medicare Advantage plans are definitely not free but some plans have $0 premium. This means you pay no premium for the plan itself, but you will still pay the Part B premium to Medicare and you will pay deductibles, copays, and coinsurance as you use your benefits. When you enroll in a Medicare Advantage plan, Medicare pays the Advantage plan insurance company a monthly fee to take on all of your medical risk. That is the reason why some plans can offer you a $0 premium as they are already getting paid by Medicare on your behalf.

People often ask us our opinion on which plan is the best Medicare Advantage plan. This varies based on a number of personal factors as what’s right for your friend or neighbor may not be right for you. Don’t risk making a mistake on something as critical as your health insurance and instead get help from an experienced agent who can explain your options in detail. Contact My Medicare Network for help today at (440) 793-7745!