More than 60 million people are enrolled in Medicare. Despite the fact that nearly 20 percent of the U.S. population uses Medicare, there are a lot of misconceptions about it. To clear things up, it’s time to get schooled on the ABCs of Medicare and Medicare Supplement Insurance.
Medicare Supplement Insurance
You may already know that Medicare comes in different parts.
- Part A covers hospital care.
- Part B covers outpatient care including doctor’s visits.
- Part C is a private alternative to Parts A and B and often include additional benefits.
- Part D covers prescription drugs.
These aren’t the only letters that matter when it comes to Medicare, however. Medicare Supplement plans, also called Medigap policies, can combine with Medicare Parts A and B to help pay for out-of-pocket costs, like copayments, coinsurance and deductibles.
There are multiple Medigap plans available, all sold by private companies. Each plan provides different benefits. To understand them, you need to learn a new set of ABCs. Here’s some basic information to get you started.
Medicare Supplement Plan A. This plan is for people who have Medicare because they are disabled or have end-stage renal disease. The following costs are covered at 100 percent.
- Medicare Part A coinsurance and hospital costs for an additional 365 days
- Medicare Part B coinsurance
- Blood (up to three pints)
- Part A hospice care coinsurance
Medicare Supplement Plan B. The following costs are covered at 100 percent.
- Medicare Part A coinsurance and hospital costs for an additional 365 days
- Medicare Part B coinsurance
- Blood (up to three pints)
- Part A hospice care coinsurance
- Medicare Part A deductible
Medicare Supplement Plan C. The following costs are covered at 100 percent, except as noted.
- Medicare Part A coinsurance and hospital costs for an additional 365 days
- Medicare Part B coinsurance
- Blood (up to three pints)
- Part A hospice care coinsurance
- Skilled nursing facility care coinsurance
- Medicare Part A deductible
- Medicare Part B deductible
- Foreign travel emergency (covered at 80 percent up to plan limits)
New rules will prohibit Medigap plans that cover the Part B deductible. As a result, Plan C will not be available to newly eligible Medicare beneficiaries as of January 1, 2020.
Medicare Supplement Plan F. This plan provides the full range of available Medigap benefits. The following costs are covered at 100 percent, except as noted.
- Medicare Part A coinsurance and hospital costs for an additional 365 days
- Medicare Part B coinsurance
- Blood (up to three pints)
- Part A hospice care coinsurance
- Skilled nursing facility care coinsurance
- Medicare Part A deductible
- Medicare Part B deductible
- Medicare Part B excess charges
- Foreign travel emergency (covered at 80 percent up to plan limits)
New rules will prohibit Medigap plans that cover the Part B deductible. As a result, Plan F will not be available to newly eligible Medicare beneficiaries as of January 1, 2020.
Medicare Supplement Plan G. This plan provides the full range of Medigap benefits except for the Part B deductible. The following costs are covered at 100 percent, except as noted.
- Medicare Part A coinsurance and hospital costs for an additional 365 days
- Medicare Part B coinsurance
- Blood (up to three pints)
- Part A hospice care coinsurance
- Skilled nursing facility care coinsurance
- Medicare Part A deductible
- Medicare Part B excess charges
- Foreign travel emergency (covered at 80 percent up to plan limits)
Medicare Supplement Plan K. This plan provides partial coverage for many benefits. The following costs are covered at 100 or 50 percent. Other costs are not covered.
- Medicare Part A coinsurance and hospital costs for an additional 365 days (100 percent)
- Medicare Part B coinsurance (50 percent)
- Blood (up to three pints) (50 percent)
- Part A hospice care coinsurance (50 percent)
- Skilled nursing facility care coinsurance (50 percent)
- Medicare Part A deductible (50 percent)
Medicare Supplement Plan L. This plan provides partial coverage for many benefits. The following costs are covered at 100 or 75 percent. Other costs are not covered.
- Medicare Part A coinsurance and hospital costs for an additional 365 days (100 percent)
- Medicare Part B coinsurance (75 percent)
- Blood (up to three pints) (75 percent)
- Part A hospice care coinsurance (75 percent)
- Skilled nursing facility care coinsurance (75 percent)
- Medicare Part A deductible (75 percent)
Medicare Supplement Plan N. The following costs are covered at 100 percent, except as noted.
- Medicare Part A coinsurance and hospital costs for an additional 365 days
- Medicare Part B coinsurance (with a $20 copay for office visits and a $50 copay for emergency room visits)
- Blood (up to three pints)
- Part A hospice care coinsurance
- Skilled nursing facility care coinsurance
- Medicare Part A deductible
- Foreign travel emergency (covered at 80 percent up to plan limits)
Medicare Select. Medicare Supplement Plans C and F are also available as Medicare Select policies. Medicare Select policies use a network. To receive full benefits, you will need to receive care from doctors and hospitals in the network. As a result, these plans tend to be less expensive, but they may not be available in all states.
Before selecting any plan, make sure you read the policy details carefully, as there may be other restrictions and exclusions. Also, it’s a good idea to seek guidance from a licensed agent. Contact us for assistance.