A Medicare Supplement is a type of health insurance sold by private insurers to cover the gaps in Medicare. This is why we refer to the plans as “Medigap Plans.”
Your Medicare Supplement insurance company will issue you a card with your plan and policy information.
Here’s an easy way to think of a Medicare Supplement. Picture it as a card that connects to the back of your Original Medicare. Medicare will first pay its share of your medical expenses. Then your policy will step in and pay its share. This is usually the remainder of your bill. However, it depends on which policy you choose from the standard offered plans.
Medicare Supplement Plan F is one of the most popular Supplements in the nation. It pays 100% of the costs that Medicare would normally bill to you. This means that when you have Medicare Supplement Plan F, you will not pay any deductibles. You will pay no copays. Plan F will pay ALL of your shares.
Medicare Supplement Plan G has been gaining popularity in recent years. It functions exactly like Plan F, except for the Part B deductible. You agree to pay the Part B deductible each year, and after that, it pays everything else. The Part B deductible is $226 per year as of 2023. Quite often we can find Medicare Supplement Plan G premiums that save you more than $226/year. This means that you come out ahead in the long run.
Medicare Supplement Plan N is one of the newer Medigap plans. It was first offered in 2010. Plan N will usually have lower premiums than Plan F or Plan G. However you will do more cost-sharing along the way. You will pay a doctor copay up to $20 each time you see a doctor. Copays of up to $50 for an E.R. visit are owed by you.
You will also pay excess charges. Some doctors bill an extra 15% above Medicare’s rate. This is called an Excess Charge. Plan F or Plan G takes care of this for you. On Plan N, you pay the excess charge yourself. See more on this in the glossary below.
Medicare Supplements only pays after Medicare has first paid its share. If Medicare approves a claim and pays the part that Medicare owes, it will forward the remainder of the bill to your Medicare Supplement.
Some things that are not covered by Medicare or your Medicare Supplement are:
Since Medigap plans are standardized, you will know exactly which benefits you are purchasing. Also, all Medicare Supplement plans are guaranteed renewable. Therefore, you don’t have to reapply each year. There are several factors that you will want to know about each insurance carrier before you choose your Supplement though:
Rates – What is a Medicare Supplement premium? It’s the monthly rate that you pay to the insurance company that provides your Medicare Supplement coverage? Find out what premium each insurance carrier will charge you. Are they offering a low premium? Is it competitive with other Medigap insurance companies in your area?
Rate trend history – Most policies will have an annual rate increase to keep up with medical inflation. What kind of rate increases has the carrier you are considering had over the last 3 years? Are the rate increases reasonable or significantly higher than the competitors?
Financial ratings – A number of rating companies dig into the financial stability of each insurance carrier. These companies give reports, or grades, on the fiscal health of the insurer. Ask your agent what the A.M. Best and Weiss Ratings are for each carrier. Then consider this information when making your selection.
Get a personalized analysis of which Medigap insurance carrier offers the best pricing, financial rating, and rate trend history.
Medicare Supplements only pays after Medicare has first paid its share. If Medicare approves a claim and pays the part that Medicare owes, it will forward the remainder of the bill to your Medicare Supplement.
Some things that are not covered by Medicare or your Medicare Supplement are:
Since Medigap plans are standardized, you will know exactly which benefits you are purchasing. Also, all Medicare Supplement plans are guaranteed renewable. Therefore, you don’t have to reapply each year. There are several factors that you will want to know about each insurance carrier before you choose your Supplement though:
Rates – What is a Medicare Supplement premium? It’s the monthly rate that you pay to the insurance company that provides your Medicare Supplement coverage? Find out what premium each insurance carrier will charge you. Are they offering a low premium? Is it competitive with other Medigap insurance companies in your area?
Rate trend history – Most policies will have an annual rate increase to keep up with medical inflation. What kind of rate increases has the carrier you are considering had over the last 3 years? Are the rate increases reasonable or significantly higher than the competitors?
Financial ratings – A number of rating companies dig into the financial stability of each insurance carrier. These companies give reports, or grades, on the fiscal health of the insurer. Ask your agent what the A.M. Best and Weiss Ratings are for each carrier. Then consider this information when making your selection.
Get a personalized analysis of which Medigap insurance carrier offers the best pricing, financial rating, and rate trend history.
Providing Medicare products and education to clients across Iowa and the Midwest.
