fbpx

Medicare Supplements

Medicare Supplement plans, also called “Medigap” plans, are private insurance plans that help fill “gaps” in Original Medicare. Original Medicare pays for much of your covered health care services and supplies, but you are responsible for some out-of-pocket costs. Medicare Supplement policies help reduce your out-of-pocket costs by paying some of the expenses not covered by Original Medicare. Medicare Supplement policies are not Medicare Advantage plans and work very differently than Medicare Advantage plans. They do not replace Original Medicare Parts A and B, like Medicare Advantage but coordinates with Original Medicare.

Medicare Supplements Cover

Medicare Supplement plans can help pay some of the health care costs Medicare does not, including:

  • Copayments
  • Coinsurance
  • Deductibles

Medicare Supplement plans have been given letter designations from A through N, and the benefits are standardized. The benefits provided in each plan are the same no matter which insurance company offers the coverage. The standard plans and benefits provided by each are outlined below.

 Standard Medicare Supplement Plans
BenefitsABCDFGKLMN
Part A coinsurance & hospital costsPlan covers 100%Plan covers 100%Plan covers 100%Plan covers 100%Plan covers 100%Plan covers 100%Plan covers 100%Plan covers 100%Plan covers 100%Plan covers 100%
Part B co-pays/coinsurancePlan covers 100%Plan covers 100%Plan covers 100%Plan covers 100%Plan covers 100%Plan covers 100%Plan covers 50%Plan covers 75%Plan covers 100%Plan covers 100%
Blood (first 3 pints)Plan covers 100%Plan covers 100%Plan covers 100%Plan covers 100%Plan covers 100%Plan covers 100%Plan covers 50%Plan covers 75%Plan covers 100%Plan covers 100%
Part A hospicePlan covers 100%Plan covers 100%Plan covers 100%Plan covers 100%Plan covers 100%Plan covers 100%Plan covers 50%Plan covers 75%Plan covers 100%Plan covers 100%
Skilled nursing facilityPlan doesn’t coverPlan doesn’t coverPlan covers 100%Plan covers 100%Plan covers 100%Plan covers 100%Plan covers 50%Plan covers 75%Plan covers 100%Plan covers 100%
Part A deductiblePlan doesn’t coverPlan covers 100%Plan covers 100%Plan covers 100%Plan covers 100%Plan covers 100%Plan covers 50%Plan covers 75%Plan covers 50%Plan covers 100%
Part B deductiblePlan doesn’t coverPlan doesn’t coverPlan covers 100%Plan doesn’t coverPlan covers 100%Plan doesn’t coverPlan doesn’t coverPlan doesn’t coverPlan doesn’t coverPlan doesn’t cover
Part B excess chargesPlan doesn’t coverPlan doesn’t coverPlan doesn’t coverPlan doesn’t coverPlan covers 100%Plan covers 100%Plan doesn’t coverPlan doesn’t coverPlan doesn’t coverPlan doesn’t cover
Foreign travel emergencyPlan doesn’t coverPlan doesn’t coverplan covers 80%Plan covers 80%Plan covers 80%Plan covers 80%Plan doesn’t coverPlan doesn’t coverPlan covers 80%Plan covers 80%
       $5,880$2,940  
 Out-of-pocket
limit in 2020

*As of January 1, 2020, Medicare Supplement plans C and F (highlighted in red above) are not available to those newly eligible for Medicare beginning January 1, 2020. This is due to Medicare changes that no longer allow Medicare Supplement plans to cover the Part B deductible.

Medicare Supplement Costs

In addition to the premium for your Medicare Supplement policy, you will still have to pay your Medicare Part B premium and Part A premium if applicable. You may also have to pay some co-pays, coinsurance, or deductibles, depending on which plan you choose. Medicare Supplement policies do not cover Prescription drugs. As a result, you will need to purchase a stand-alone Part-D prescription drug plan, which may have an additional plan premium and co-pays, coinsurance, or deductibles that apply to the Part D plan.