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Medicare Supplemental Insurance Plans

Medicare Supplement plans, or Medigap plans, provide private insurance that help fill the gap of Medicare Part A and Part B.

How Does Medicare Part A and Part B Work?

Medicare Part A and Part B do not cover all benefits at 100%.  Part A, which covers hospitalization and skilled nursing, has deductibles which must be paid before benefits begin.   For example, in 2013, if you were to be hospitalized for three days you must pay $1,184 for your Part A deductible.  This covers the hospital fees, but not the doctor fees.  The doctor fees fall under Part B. Typically, Part B is an 80/20 coinsurance of the Medicare approved amount after the annual deductible of $147 is met.  Meaning, if your doctor bill is $100.00 (after Medicare assignment) the beneficiary pays $20, or 20%.

How Does a Medigap Plan Supplement Medicare?

A Medicare Supplement plan will help pay Part A and Part B deductibles, as well as the Part B coinsurance.   The amount the insurance company will pay depends on which plan you purchase.  All Medigap plans are standardized by the federal government and labeled “A” through “N.”  This means the only difference in benefits for a standardized Medigap plan is the premium an insurance company charges.

How Do the Medigap Plans Compare?

Below you will find a chart to simply understand the differences in the benefits of the standardized Medicare Supplement plans.  Plan F is the most comprehensive plan. With Plan F, all benefits listed below are covered at 100%.  Many insurance companies offer Medigap plans, but each company determines the premium of their plan.

2011: Choosing a Medigap Policy

What Are the New Changes to Medigap Plans?

The Medicare Prescription Drug Improvement and Modernization Act of 2003 encouraged the National Association of Insurance Commissioners to modernize Medigap plans.  The “modernization” of plans took effect on June, 1 2010.  Medigap Plans E, H, I and J were eliminated at that time.  Although, if you have a plan that was eliminated you can still keep it. Other changes include two new Medigap Plans — Plan M and Plan N.  These plans have more of the feel of a Medicare Advantage Plan by utilizing a cost sharing system to keep the premiums low.  Speak with a Medicare Colorado Senior Advisor to learn the best plan for you.

Do Medicare Supplements Cover Prescription Drugs?

Medigap plans do not include a qualifying Part D Prescription Drug Plan.  Some plans, however, offer prescription discounts.  A separate stand-alone Part D plan is often purchased for prescription coverage.  Since a Medigap plan does not qualify as credible prescription coverage, if you decide not to enroll in a Part D plan, you will be assessed a penalty for late enrollment into a Part D plan if you choose to enroll in a Part D plan at a later date.

How Do I Purchase a Medicare Supplement?

Give us a call at 1-800-380-1644.  We’re happy to help!  

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