Medicare Supplement Plans – connecting the dots

Medicare Supplement plans are designed to make up for the loophole in conventional Medicare.  These supplement plans remain the same across companies as all companies are expected to offer the same standard of benefits. This helps for easy understanding of the plans and how they function. When looking at Medicare Supplement plans 2019 there are three major things which you should bear in mind:

    1. Regardless of which company sells you the plan, Medigap plans can be applied at any hospital across the country. There are many network-based type of insurance; this however, does not follow as regards Medicare Supplement plans. In most cases, some types of Medicare plans – Medicare Advantage plans – are network-based. Medigap plans on the contrary, give you the flexibility of using the plan anywhere that accepts Medicare in the country. For someone that travels, this flexibility is particularly one of the many reasons that these plans have become increasingly popular as a means of supplementing Medicare coverage.


  1. Medigap, also known as Medicare Supplement plans, have a Federal standard. All the plans provide equal coverage for “like” plans. This implies that a Plan F offered by one company is exactly the same as a Plan F offered by another company. For this reason, it is imperative that the plans are compared on the basis of company reputation or rating and monthly premium. It is preferable to be with a company that has a high financial strength rating and/or an extended track record of involvement in the senior insurance marketplace, provided the price remains constant.
  2. All Medigap plans pay claims using the Medicare “crossover” system. No variations exist as to how efficiently or quickly a company settles claims as compared to another. Although some firms may use their timeliness in the payment of claims as a selling point, this really is not the case when it has to do with this kind of insurance. Because the plans are standardized federally and pay claims using the “crossover” system, there is guarantee that, regardless of the company involved, the claims will be paid in a timely manner and with little or no involvement from the insured. When receiving services from a doctor or hospital, you have to present your plan identification card with your blue, white and red Medicare card as soon as you have a plan.

Medicare Supplement plans remain a viable option for individuals who are on Medicare. With Medicare alone, you will be paying about 20% of all medical costs.