Luckily, you have the option to purchase a Medicare Supplement insurance plan to cover some of these out-of-pocket costs. But how much do plans cost? And how do you determine what policy option is right for you? We’re breaking it down:
What Is Medicare Supplement Insurance?
Medicare Supplement insurance, or Medigap, works with Original Medicare (Parts A and B). A Medigap policy can help you to pay for some of the out-of-pocket costs not covered by Original Medicare, including copayments, coinsurance, and deductibles. Most Medicare Supplement plans do not require referrals and allow you to visit any provider in and out of your state, as long as they accept Medicare insurance. Medicare Supplement policies are offered by private insurance companies, and you must have Medicare Part A and B to qualify for this benefit. Medigap is not available with Medicare Advantage (Part C) plans. How Medigap works:
What Types Of Plans Are Available?
Medigap plans must follow federal and state laws. Insurance companies can only sell standard policies that are clearly identified as “Medicare Supplement insurance.” Medigap plans are identified by letters. All 10 plans, labeled A, B, C, D, F, G, K, L, M and N, offer the same standard benefits. Extra benefits are offered to differentiate between them. Medicare Supplement Plans Insurance companies do not have to offer all 10 policies. They must offer Plan A and either Plan C or F. *Medigap policies are standardized in a different way in Massachusetts, Minnesota and Wisconsin. ** As of January 1, 2020, Medicare Supplement insurance plans are not able to cover Plan B deductibles for those newly eligible for Medicare benefits.
How Much Does Medigap Cost?
The price, or premium, of each Medicare Supplement plan is set by each individual insurance carrier. The average cost of Medicare Supplement plans can range anywhere between $50 and $300 for monthly insurance premiums. The way these prices are set can affect both your current and future Medigap premiums. It is important to ask your insurance company how costs are determined. Medigap policies are typically priced, or rated, in three different ways: Other factors that influence Medicare Supplement insurance premiums include:
Geographic area – Specific state rules can impact the cost of insurance premiums.The insurance company – If a company has more members paying into it, then individual premiums can be lower for everyone. It also depends on how strict an insurer’s underwriting policy is. Who they approve or deny for coverage can also impact the number of health claims that need to be covered.Discounts – Many insurance carriers offer policy discounts for a variety of reasons, such as for non-smokers, paying yearly, paying by electronic transfer, or having multiple policies.Type of plan – Premium costs vary depending on which plan you choose. For example, Plan A will have a lower premium than Plan N but won’t cover as much. You also may have lower premiums if you choose a Medicare SELECT policy or for high-deductible plan options.Open enrollment period –Insurance companies may charge a higher premium if you purchase a Medigap policy outside of the Medicare Open Enrollment Period.
What Is A Medicare Supplement Deductible?
The Medicare Supplement deductible, just like with other types of insurance, is the amount of money you pay before your insurance covers the costs for you. Depending on your Medigap policy, the amount you have to pay in first can vary. Often a low premium means a higher deductible.
Where Can I Go To Learn More?
The best way to do a Medicare Supplement plans cost comparison is to shop around. With a variety of plans and insurance carriers to choose from, you are bound to find a Medigap policy to suit your health needs and budget. Each Medicare plan and insurance product we feature has been independently selected and reviewed by the Medicare Expert USA team. If you make a purchase using the links included, Parade.com may be compensated. Next up, here’show to be a good caregiver and take good care of yourself, too.
