Original Medicare consists of Part A (Hospital) and Part B (Medical). Most people get Part A for free and pay a Part B premium of around $100 to $200 per month. This premium can change from year to year and is usually withdrawn from social security payments before they are deposited. Even though traditional Medicare is a great safety net for American seniors and people with disabilities, it still leaves beneficiaries vulnerable to lots of potential out-of-pocket costs.
Medicare Supplement plans, sometimes called Medigap plans, fill in the gaps to pay for the costs that Medicare does not completely cover. According to the Kaiser Family Foundation, about a quarter of beneficiaries buy Medicare Supplement plans to control their expenses. Others may rely on traditional Medicare alone or join a Medicare Advantage plan.
Compare Medicare Supplement Quotes Online
To learn more, you can use our Online Medicare Supplement Quote form to compare Medicare Supplement plans, Medicare Advantage, and prescription coverage for your area. Just select your state to begin.
How Medicare Works: Potential Out-Of-Pocket Costs with Original Medicare
These out-of-pocket costs are always subject to change, but here is an example of some of the largest costs that current beneficiaries may have to pay under traditional Medicare:
- Hospital inpatient deductible: $1,316 per period
- Medicare Part B Annual Deductible for 2018: $183
- Additional days inpatient deductibles: Days 61-90: $329 per day; Days 91 and beyond: $658 per day; After lifetime reserve days: Entire bill
- Most doctor services: You pay 20%, and Medicare pays 80%.
How Do Medicare Supplement Plans Work?
Private insurance companies sell Medigap plans that help to protect beneficiaries against these expenses. Unlike Medicare Advantage, sometimes called Part C, these Medicare Supplements work with Original Medicare Part A and Part B to provide more complete coverage. Beneficiaries need to have Medicare Part A and B to enroll in either Part C or a Medicare Supplement plan, but they will never enroll in both Medicare Advantage and a Medicare Supplement plan. It is always one or the other.
To understand how Medicare Supplement plans work, it might be helpful to illustrate a few of these plan levels:
- Plan A, along with Plan B, offers a basic level of coverage. Don’t confuse these plans with Original Medicare Part A and Part B of traditional Medicare.
- Plan C is often thought of as the level with the most robust benefits and slightly higher premiums. This is NOT the same as Part C or Medicare Advantage.
- Plans G and F: These two options protect against rising costs by covering excess charges (when providers charge more than Medicare allows). There is also a high-deductible Plan F with cheaper rates than the regular option.
Typically, the premiums will be higher for the levels that provide more coverage. For example, Plan A is usually more affordable than Plan C. The exact price may vary based on your needs and location, so remember to compare Medicare Supplement quotes online.
Medicare Supplement Plans and Medical Underwriting
Beneficiaries have guaranteed enrollment periods during which they can sign up for a Medical Supplement with no health questions or other medical underwritings. The most common example is when beneficiaries first become eligible for Medicare. Additionally, if either an Advantage or Medicare Supplement company pulls out of a service area, there may be another period.
At other times, beneficiaries may have to answer health questions and could get declined or receive a much pricier Medicare Supplement quote online or over the phone.
Find the Best Medicare Supplement Plan for You
Levels of coverage will impact premiums, but it is important to realize that insurers compete on price. Therefore, you should shop around and compare Medicare Supplement quotes online. These are some of the largest private insurers that offer Medicare Supplement plans today:
Now that you understand how Medigap plans works, you can compare premiums and coverage to find the best option for you. Just enter your basic information to receive Medicare Advantage and Medicare Supplement quotes online. Our agents will be happy to help explain your options and compare several quotes from the top Medigap companies. This will ensure that you choose the best plan for your needs.