Medicare is composed of multiple parts that are meant to provide comprehensive coverage. Unfortunately, some people still have difficulty getting coverage in certain cases or have to pay high out-of-pocket costs. To address this, Medicare Supplement Plans, also known as Medigap plans, were created to close these gaps. Combining a Supplement plan with Original Medicare is accepted all over the country and typically results in lower out-of-pocket costs and more flexibility. The cost of a plan can be affected by factors such as age, gender, location, tobacco use, and whether or not you are eligible for discounts. The premium for the plan can vary depending on these factors and which insurance company you go with.
Medicare Standardized Supplement Plans
A Medicare Supplement Plan is a type of insurance that helps to cover the costs that Medicare does not. These costs could include things like deductibles, copays, and coinsurance. When a medical bill is received, Medicare will pay for the portion that it usually covers. The Supplement Plan then pays for the remaining balance that Medicare does not cover. The amount of coverage can vary from plan to plan.
Medicare standardized Supplement plans in 1990 and labeled each plan with a letter. Beneficiaries can choose from plans A, B, C, D, F, G, K, L, M, or N. Even when purchased from different companies, plans marked with the same letter will offer the same benefits. The main difference between Supplement plans (also known as Medigap plans) is the cost of the premium. For this reason, it is important to compare different plans to find the one that best fits your needs and budget. It is important to note that some services are not covered by any Medicare Supplement plan, including routine dental, vision and hearing exams, glasses or contacts, hearing aids, retail prescription drugs, and long-term or custodial care.
If you are eligible for Medicare, it is important to understand when you can enroll in a Medicare Supplement plan. Your Medicare Supplement Open Enrollment period begins on the day that your Medicare Part B coverage activates and lasts for six months. During this period, you can enroll in a Medicare Supplement plan without answering any health questions. After this period ends, any applications for a Medigap plan will require a health questionnaire, and you could be denied coverage. Most people have only one Open Enrollment period, when they turn 65. If you delay Part B coverage because you’re still working, your Open Enrollment window will occur later when your Part B coverage goes into effect. Those who are eligible for Medicare before they turn 65 due to disability will have a second Open Enrollment window when they turn 65. It is important to speak with a licensed insurance professional during your Open Enrollment window to understand your rights and responsibilities with regard to Medicare Supplement plans. It is also important to note that the Medicare Supplement Open Enrollment Period is not the same as the Annual Election Period that occurs each autumn.