Medicare supplement plans cover the gaps in Medicare coverage. The government created several standard policies. Private insurance companies sell and administer these policies.
All Medicare supplemental plans offer the following:
- Medicare Part A hospital co-insurance
- Hospital coverage for 365 days after your Medicare stops paying
- Some or all the cost for blood transfusions
- Some or all the Medicare Part B co-insurance
- Some or all the out-of-pocket costs for hospice care. This is true for policies issued after June 1, 2010
Medicare Supplement Plans
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Medicare Supplement Plan A
Medigap Plan A is the cheapest of the medicare supplement plans. This is because it covers the least. It provides only the basic Medicare Supplemental coverage.
| Medigap Coverage | Not Covered |
|---|---|
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If you have a personal physician who does not charge more that Medicare gives, Plan A is a good choice. Your biggest expenses result from non-Medicare doctors. Also, you must plan to pay the separate deductible for each hospital stay. You also need to afford the cost of co-insurance for hospital stays greater than 60 days.
Medicare Supplement Plan B
This has the same coverage as Plan A, but includes coverage for Part A deductible.
| Medigap Coverage | Not Covered |
|---|---|
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The same reasoning applies to plan B that applied to plan A. It makes sense if you have a physician that accepts with Medicare payment for their services. You still need to afford uncovered doctors expenses by doctors who do not accept Medicare assignment.
Plan B will have a higher premium because of the extra coverage for the Part A deductible. You must measure the cost of the added premium and compare it to the cost of the deductible. Other Medicare supplement plans are potentially a better value.
Medicare Supplement Plan C
This has the same coverage as Plan B, but includes three other benefits.
| Medigap Coverage | Not Covered |
|---|---|
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Medicare Plan C adds to Medicare Plan B.
Plan C pays the part B deductible. However, the additional cost in premium eliminates any savings.
Plan C adds co-insurance for skilled nursing care. There are co-insurance charges for days 21 to 90. The coverage only applies if you short-term skilled nursing care in a nursing facility for a Medicare covered event.
Plan C is the first of the Medicare supplement plans to cover foreign travel. For people who travel abroad often, plan C provides coverage for the first 60 days of the trip. There is no coverage after 60 days. There is a $250 deductible. Then, it pays for 80% of any emergency medical expenses. There is a $50,000 lifetime maximum.
Medicare Supplement Plan D
Plan D is the same as Plan C, but without the Medicare Part B deductible.
| Medigap Coverage | Not Covered |
|---|---|
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The at home recovery benefit is also added.
Medicare Supplement Plan E
Medicare Plan E is discontinued. There are no new policies being sold. However, you may continue the policy if you have it.
Medicare Supplement Plan F
Plan F is the same as Plan C with added benefit of paying for any 15% Medicare surcharge.
| Medigap Coverage | Not Covered |
|---|---|
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Doctors may charge patients up to 15% more than the Medicare paid amount. This is an out-of-pocket cost paid by the Medicare patient. Medicare Plan F pays 100% of this charge.
Medicare Supplement Plan G
Plan G is the same as Plan F but without the part B deductible coverage.
| Medigap Coverage | Not Covered |
|---|---|
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Medicare plan G policies issued prior to June 1, 2010 pay 80% of the surcharge. Medicare supplement plans issued, on or after June 1, 2010 pay 100% of the surcharge.
Medicare Supplement Plan H
Medicare Plan H is discontinued. There are no new policies being sold. However, you may continue the policy if you have it.
Medicare Supplement Plan I
Medicare Plan I is discontinued. There are no new policies being sold. However, you may continue the policy if you have it.
Medicare Supplement Plan J
Medicare Plan J is discontinued. There are no new policies being sold. However, you may continue the policy if you have it.
Medicare Supplement Plan K
Plan K covers the same as other Medicare supplement plans. The difference is that it has 50% deductibles and an out-of-pocket expense cap.
| Medigap Coverage | Not Covered |
|---|---|
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Medicare Plan K covers 50% of many Medicare costs. The benefit of this plan is the annual out-of-pocket cost cap. The Medicare patient pays expenses up to the out-of-pocket limit for that year. After that, the policy pays 100% of all part A and B costs.
Medicare Supplement Plan L
Plan L provides the as same coverage as Plan K but with 75% deductibles and a lower out-of-pocket expense cap.
| Medigap Coverage | Not Covered |
|---|---|
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Medicare Plan L covers 75% of many Medicare costs. The benefit of this plan is the annual out-of-pocket cost cap. The Medicare patient pays expenses up to the out-of-pocket limit for that year. After that, the policy pays 100% of all part A and B costs. Plan L coverage is more expensive than Plan K.
Medicare Supplement Plan M
This has the same coverage as Plan C, but pays 50% of the Part A deductible.
| Medigap Coverage | Not Covered |
|---|---|
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This is one of the Medicare supplement plans which became available on June 1, 2010.
Medicare Supplement Plan N
This has the same coverage as Plan C, but has a fixed part B co-insurance payment.
| Medigap Coverage | Not Covered |
|---|---|
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Part B co-insurance is a fixed cost of $20 for each health provider visit, and $50 for an emergency room visit (for 2011). This is one of the Medicare supplement plans which became available on June 1, 2010.
Choosing Medicare Supplement Insurance Plans
The first thing you need to decide before buying Medicare supplemental insurance, is how much you will need to budget for your health care on an annual basis. You will also need to understand how Medicare supplement premiums are calculated. Once you understand what you can afford, then you can assess the different Medicare supplement plans.