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 | ||||||||||
| Benefits | A | B | C | D | F | G | K | L | M | N |
| Part A coinsurance & hospital costs | 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% | Plan covers 100% |
| Part B co-pays/coinsurance | 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% |
| 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 hospice | 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% |
| Skilled nursing facility | Plan doesn’t cover | Plan doesn’t cover | 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 deductible | Plan doesn’t cover | Plan 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 deductible | Plan doesn’t cover | Plan doesn’t cover | Plan covers 100% | Plan doesn’t cover | Plan covers 100% | Plan doesn’t cover | Plan doesn’t cover | Plan doesn’t cover | Plan doesn’t cover | Plan doesn’t cover |
| Part B excess charges | Plan doesn’t cover | Plan doesn’t cover | Plan doesn’t cover | Plan doesn’t cover | Plan covers 100% | Plan covers 100% | Plan doesn’t cover | Plan doesn’t cover | Plan doesn’t cover | Plan doesn’t cover |
| Foreign travel emergency | Plan doesn’t cover | Plan doesn’t cover | plan covers 80% | Plan covers 80% | Plan covers 80% | Plan covers 80% | Plan doesn’t cover | Plan doesn’t cover | Plan 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.