After Medicare pays its share, people are still left with their portion of the cost, along with the monthly premiums, deductibles, copayments, and coinsurance. Medicare Supplement Plans (Medigap) are for people who want some help paying for Medicare expenses.
About Medicare Supplements
Medicare Supplement insurance comes from private companies, but each plan was standardized by the federal government in 1990.
There are ten different supplement plans available. They differ in the monthly premium you have to pay as well as in how much they cover.
These plans are named A, B, C, D, F, G, K, L, M, and N. The most common types of supplement plan are F, G, and N. Costs and coverage depend on your provider, but the outlines of the cost coverage stay the same.
Most Common Supplements
With Plan F, you end up paying no deductible or copayment. The plan will pay for 100 percent of the costs left over after Medicare pays its due. With this plan, you are likely to have a higher monthly premium.
Plan G does not cover the Part B deductible but will cover everything else. You may end up saving the cost of the deductible from not having to pay the rest.
Another common plan is Plan N, which pays for less than Plans F and G but has lower costs. Plan N’s lower premiums mean that you have copayments. Typically, you will owe $20 for doctor visits and $50 for emergency room visits. Additionally, you will have to pay the difference between the billed amount and the Medicare-approved amount, which is called an Excess Charge.
If you are relatively healthy and not anticipating hospital stays, a lower premium with lower coverage may make sense for you. You can choose Plan N knowing that you will face copayments and Excess Charges if the need arrives.
For a higher monthly premium, you can forget about the expenses of Original Medicare. Going with Plan F or Plan G will make sense for those who can afford the higher premium and have preexisting conditions or are otherwise anticipate using their Medicare insurance.
To know which plan is best for you, go over all your options and consider consulting a licensed insurance professional. They will be able to find the right coverage at the right price for you.
For all of your Medicare questions, look to Medicare on Video for the answers.