Categories
Default

WHAT IS A MEDICARE SUPPLEMENT INSURANCE PLAN?

Introduction:

The Medicare supplement plans, also renowned as “Medigap,” are Medicare Supplement plansadditional coverage that fills the gap between governments funded coverage and your real health expenditures. These “Medigap” policies are sold by private companies and used to pay such health care expenses which are not covered by original Medicare plans (Part A and Part B). These plans are used to pay your out-of-pocket costs including:

  • Deductibles
  • Coinsurance
  • These policies cover just as a person. It means if you and your spouse want to buy a Medicare supplement insurance plan, you both will buy it separately. These plans are best for those people who already have the original Medicare plan, Part A and Part B. These plans are not for those who have a Medicare advantage plan. A monthly premium is paid for Medicare supplement insurance plans. Consequently, these plans cover most of your out-of-pocket expenses.

 

Eligibility for Medicare Supplement Insurance Plans:

You will be eligible for Medicare supplement plans when you turn at the age of 65 years. Once you reach 65 years of age, an open enrollment time duration starts, which remains open until six months. Within this duration, a free enrollment period will be given to you to get enrollment in any Medicare supplement insurance plan, and your issue right is guaranteed. At first, you have to enroll in both Medicare Part A and Part B. Open enrollment is the best time to get enrolls in any plan as you get more basic benefits at this time. If you get registered after the open enrollment period then you will be deprived of the primary benefits, and the high rates of the premium will be charged.

 

Features of the Medicare Supplement Insurance Plan:

There are certain salient features that Medicare supplement plans may possess:

  • It covers additional health care and out-of-pocket expenses not covered under Original Medicare.
  • It provides coverage even you travel anywhere in the USA.
  • These plans offer guaranteed coverage until you pay a premium for it.
  • These policies are used to those doctors who accept Medicare patients.
  • No references are required to see any specialist.

 

 

Types of Medicare Supplement Insurance Plan:

The private insurers offer ten different Medicare supplement plans labeled as Plan A. Plan B, Plan C, Plan D, Plan F, Plan G, Plan K, Plan L, Plan M, and Plan N.  Each plan is specific with a letter that is assigned to it. All these policies are standardized and offer the same elementary benefits with different coverage levels.

 

Coverage under Medicare Supplement Insurance Plan:

Medicare supplement insurance plans are primarily aimed to pay out-of-pocket expenses. All the programs have different costs, benefits, and level of coverage i.e.

  • Plan A includes the essential benefits for coinsurance and copayment, covered under Original Medicare Part A and Part B.
  • Plan B is the same as Plan A for essential benefits, but it also pays the deductibles of Medicare Part A.
  • Plan C is also the same as Plan A for primary benefits, but it also pays the deductibles of Medicare Part A and Part B.
  • Plan F provides most coverage from all other Medicare supplement insurance plans. It covers all out-of-pocket health care expenses. It also includes the emergency costs for foreign travel as well as coinsurance of experienced nursing facility care costs.
  • Plan G is similar to Plan F, but it excludes the coverage for deductibles of Medicare Part B.
  • Plan N provides typical small road coverage. Moreover, it also pays low deductibles as well as copayments.

 

Coverage not included under Medicare Supplement Insurance Plans:

A Medicare supplement insurance plan does not ensure dental care, a long term care policy, idea or vision care, Medicare Advantage Plan (MA), eyeglasses, prescription drugs plans, hearing aids, and private duty nursing.

 

Benefits included under Medicare Supplement Insurance Plans:

It is an obligation for the entire Medicare supplement plans, i.e. Plan A, Plan B, Plan C, Plan D, Plan F, Plan G, Plan K, Plan L, Plan M, and Plan N, to cover the following elementary benefits:

  • Coinsurance expenses of Medicare Part A for an extra 365 days after the completion of Medicare benefits.
  • Hospital care coinsurance or copayment of Medicare Part A.
  • Coinsurance or copayment of Medicare Part B
  • It must cover the first three bottles of blood used during a medical procedure.

Medicare Supplement Plan F is the more comprehensive and standardized plan of Medicare supplement insurance which offers some additional fundamental benefits given below:

  • Deductibles of Medicare Part A
  • Deductibles of Medicare Part B
  • Additional charges covered under Medicare Part B
  • Emergency care expenditures during foreign travel up to 80% of the total Medicare expenses which is approved
  • Coinsurance for the care of the Skilled Nursing Facility(SNF)

 

Cost of Medicare Supplement Insurance Plans:

Even though private insurance companies offer the same elementary benefits for all the Medicare supplement plans, but can charge different premium rates for the same project. So, you have to search the market for the best Medicare supplement insurance plan that might be appropriate for your health and monetary needs. Insurance companies use different rating methods to set the rates of premiums for different scenarios. These ways are below:

  • Community no-age-rated in which Medicare supplement insurance plans are charged at a premium rate that is used in the whole community publically. Age does not make a difference in this.
  • Issue-age-rated in which premium is charged based on your age at the time of enrollment in the plan. If your age is less at the time of registration, then the premium will be charged at a low rate.
  • Attained-age-rated is similar to the issue-age-rated way as it also charges a premium based on your age. But in this premium will be increased as the age progresses.

Whichever method of rating is used by insurance companies such as https://www.medicaresupplementplans2020.com; the rates of the premium may rise with time. It is not just because of the age factor, but it may increase due to inflation.

 

Illegal Medicare Supplement Insurance Practices:

There are certain illegal practices regarding Medicare supplement insurance plans which must be reported to the legal authorities. If someone tries to make the following attempts:

  • Forces you to buy a Medicare supplement insurance plan.
  • Sell you a second Medicare supplement insurance plan when you already have one.
  • Sell you a Medicare supplement insurance plan when you already have a Medicare Advantage Plan.
  • State that a Medicare supplement insurance plan is offered under any federal program as private insurance companies provide it.
  • Sell such a Medicare supplement insurance plan which is prohibited by the state for sale in your country
  • Show their entitlement as a Medicare agent while working as a Medicare supplement insurance company

 

Things to Remember for Medicare Supplement Insurance Plans:

There are certain things that you have to consider for Medicare supplement plans. Some of them are:

  • These plans are offered only to those people who have Medicare Part A and Part B.
  • These plans are different from the Medicare Advantage Plan.
  • These are an add-on to your original Medicare plans.
  • A monthly premium is paid for these policies, which are an addition to the premium of Medicare Part B.
  • These policies cover just as a person. It means if you and your spouse want to buy a Medicare supplement insurance plan, you both will purchase separate policies for them.
  • You can purchase these plans from any private company that has a license from the government or state to sell these policies.
  • The renewal of these policies is guaranteed until you pay a premium for it.
  • It is an illegal practice to sell Medicare supplement insurance policy to those who already have a Medicare Advantage Plan.

 Bottom Line:

The Medicare supplement plans are one of the best and noteworthy decisions related to your health, as well as the financial condition that you take at the time of your retirement. The premium rates for every Medicare supplement insurance plan will be different for each insurance company while they provide the same primary and elementary benefits. Therefore, go in the market to search the best Medicare coverage, talk with a cooperative policy provider for cost, advantages and coverage options, and then choose the best plan that will meet your health expenses.