Medicare Supplement Plans
Medicare supplement plans, also known as Medigap, are private insurance plans that help you cover out-of-pocket costs Original Medicare doesn’t cover. Original Medicare is your Part A and Part B. There are ten plan types in most states labeled with different letters. Most Medigap plans are standardized, meaning they are the same benefits from every insurance company that sells a plan. This makes it easy for beneficiaries looking to shop plan rates because the only difference is the premium cost.
The different supplement plans are labeled A, B, C, D, F, G, K, L, M, and N.
Medigap Plan A is the most standard of the Medigap plans. It covers the 20% Medicare doesn’t pay on outpatient care.
Medigap Plan B covers all that Plan A covers and the Medicare Part A hospital deductible. This plan pays after Medicare pays.
Medigap Plan C is said to be the most comprehensive supplement. This plan covers everything except your Medicare excess charges. It will pay the deductibles and 20% that you usually owe of your outpatient expenses.
Medigap Plan D covers many things but doesn’t pay your Part B deductible or excess Medicare charges. It is one of the least popular supplement plans because of this. This plan is not to be confused with Plan D prescription drug coverage; they are not the same thing.
Medigap Plan F is the most popular Medigap plan. It covers everything you would typically pay for and leaves you with no out-of-pocket costs. It leaves its customers with peace knowing they won’t be responsible for hospital or doctor visit copayments.
Medigap Plan G is very similar to Plan F and a popular choice. It has the same coverage as Plan F, except your Part D deductible. Premiums are competitively priced for Plan G vs. Plan F, making this plan a better cost annually.
Medigap Plan K, L, & M cover partial benefits. Plan K covers 50% of services. Plan L covers 75% of services. Not all carriers offer these plans because beneficiaries hardly request them.
Medigap Plan N offers a low premium to beneficiaries. This is in exchange for paying a copay for ER visits and doctor visits. It doesn’t cover Medicare excess charges either.
States such as Wisconsin, Minnesota, and Massachusetts have their plans standardized differently than the other states. Insurance companies that sell Medicare supplements are lawfully required to sell Plan A. If the insurance company wants to offer additional supplemental plans, the company must sell Plan C or Plan F along with the list of other supplements.