Have you considered Medicare supplemental insurance? Medicare supplemental plans, also known as Medigap, can support payment for the costs of original Medicare benefits (parts A and B). It is important to choose a Medigap plan option that suits your current and future health needs, as it may not be possible to change your plans later, depending on the time you sign up.
There are 10 standardized Medigap plans in each state (except Massachusetts, Minnesota and Wisconsin, all with their own versions). Each plan has a letter designation (eg Plan F) and is sold by private insurance companies throughout the country. While prices for different insurers may vary, the gains of each supplement plan are standardized for all plans with the same letter. This means, for example, coverage for Medigap Plan F is the same regardless of the insurer.
The Medicare supplements F, G and N offer many of the same benefits, with some differences that this article shares.
Medicare Supplementary Plan F
This is a common choice that gives better coverage than any other Medigap plan. Also, there is a high deductible plan that provides the same benefits as the standard plan F, but you must pay a certain amount out of pocket before the cover will commence.
Should you choose the highly deductible Plan F, you will have to pay all the original Medicare costs up to a set amount before your policy pays everything. However, you may have a reduced monthly premium than the standard F plan due to the high deductible amount.
Since Medigap Plan F offers the most benefits, it is usually the most expensive; this may however not always be the case and you should look around to find the best plan option for you.
You may see other supplement plans that have lower premiums than Plan F. However, if you have high out-of-pocket costs or see your doctor frequently, Plan F will generally help you get the most out of your original Medicare expenses.
Medicare Supplementary Plan G
This plan offers all the benefits of Plan F, except Part B’s deductible. If you choose Plan G, you will need to pay Medicare Part B’s annual deductible out- of-pocket.
It’s worthy of note that both Plan F and Plan G cover the deductibles of Medicare Part B, and they are the only Medigap plans that do. The incremental cost is the difference between the cost of a non-participating physician or medical service provider and the amount authorized by Medicare. If you see a non-participating provider, they may pay up to 15% over the Medicare-approved service for a covered service that you are normally responsible for.
Medicare Supplement Plan N
Medigap Plan N covers all benefits of Plan F except the following:
- Medicare Part B excess cost
- Medicare Part B deductible
You would have to pay out of pocket for this difference in cost. Plan N is also a little different from Plan F, because it usually pays 100% of Part B’s co-insurance, but there are exceptions