Medicare Supplements (Medigap)

Your out of pocket cost are UNLIMITED with Medicare Part A and Part B.  However, a Medicare Supplement plan can dramatically lower or eliminate the risk of unmanageable health bills.

Parts A and Part B DO NOT cover prescription medication.  Part D prescription plans or Medicare Advantage plans (Part C) with Prescription Drug coverage can help you minimize this cost.

Supplemental Plans cover your Part A and Part B deductibles and coinsurance.  How much of the out of pocket costs depend on what plan you choose.

Now for some good news!

While there are many carriers who offer Medicare Supplements, the good news is the plan coverage doesn’t change between carriers. This makes shopping much easier than many other types of insurance. The major factors between companies we look at is their claims paying ability (financial rating), customer service ratings, application fees, and overall company history.

What Supplement plan should you choose?

The most popular Medigap plan for many years has been Plan F.  Plan F pays for 100% of your Part A&B deductibles, Co-insurances, and Co-payments.  In addition it also covers Part B excess charges and provides emergency medical for foreign travel.

SPECIAL NOTE: As of January 1 2020, Medicare began the phasing out of Plan F Supplement.  If you were eligible for Medicare before 01/01/2020 you will be able to keep your supplement plan as long as the insurance provider is still offering the plan.  You may also also apply for a new Plan F Supplement if you were eligible before 01/01/2020.

Anyone eligible for Medicare after 01/01/2020 will not be eligible for any plan that pays the Part B Medicare deductible.

Lower cost alternatives should you consider.

Plan G is a great alternative the only difference between Plan F and Plan G is the Part B deductible for current year.  The 2022 deductible is $233.00 for the year .  That means when you go to the doctors office you will be responsible for the first $233.00 (not each time you go to the doctor or have a test). 

Plan N is also a good alternative the difference between Plan F and Plan N is it doesn’t cover the Part B deductible or the excess charges.  Now you may be asking yourself what are excess charges and what’s the big deal?  When you see a doctor they may accept medicare “assignment” or they may not accept the assignment amount and can charge you more.  You would be responsible for the difference between the assignment amount and the amount the doctor charged.  Keep in mind that in either case the doctor must participate with medicare.  If the doctor doesn’t participate in Medicare you will be responsible regardless of your plan selection.

Below is a list of the plan types and their differences directly from the 2022 Official Medicare Guide.