Breaking Down your Medicare Supplement Options
President/CEO at Healthcare Solutions Direct, LLC, a nationwide insurance agency focused primarily on the retiree health market.
On its own, Medicare is a somewhat complex system of health insurance. You have multiple parts, but they each do something a little different when it comes to your coverage.
While all eligible people have free access to Medicare Part A, it is not always enough. That’s where Medicare Supplement comes in. Medicare Supplement is not a single policy, but rather a variety of options from private insurance companies that all work to supplement Medicare. Each type of Medicare Supplement plan has different costs associated with it and can provide different coverage.
If you are considering supplementing your Medicare coverage with a Medicare Supplement, make sure you know what your options are.
Today’s most popular Medicare Supplement plans
Like all sections of Medicare, Medicare Supplement plans also use alphabet letters. Medicare calls them parts like Part A, Part B or Part D. Medicare Supplement on the other hand calls the alphabet letters plans. The two most commonly selected Medicare Supplement plans are Plan G and Plan N. Both give beneficiaries 100 percent comprehensive coverage through Medicare and are pretty much the only two plans that anyone is looking into right now to supplement their Medicare coverage.
Known as the “Cadillac Plan” of Medicare, Plan G has the most bells and whistles. You never pay a co-pay, or any hospital or medical costs after reaching the annual Part B deductible in 2021 of $203.
All this coverage though will come at a price because the Plan G is the most expensive Medicare Supplement plan option out there for those new to Medicare. With the Plan G, you may pay for more than you need. With this unlimited plan it always sounds great, but it is only worth the money if you max out the limits associated with some of the other Medicare Supplement plans when it comes to co-pays and things like that.
From our experience you can expect to pay around $125 to $150 a month for the Plan G if you are newly eligible to Medicare. Some areas may be a little lower or higher depending on gender and other factors.
The preferred choice for most newly eligible to Medicare when it comes to Medicare Supplement, is Plan N. The Plan N is commonly referred to as the NOW plan for Medicare Supplement plans. It provides a better balance between cost and protects beneficiaries from overpaying for coverage. It is also around $30 cheaper per month than the Plan G. If you are wavering between the Plan G and the Plan N, you might want to consider the following information. You would have to visit a doctor approximately 18 times in a single year under the Plan N to equal the cost of Plan G.
Plan N works the same way as the Plan G in that it charges you $0 in hospital and medical charges once you have met the $203 annual deductible. The difference in the Plan G is that it does come with a discretionary small co-pay for doctor visits or trips to the hospital that are not deemed medically necessary. The charge for both is low, which means you can stay within your budget should you need to start using the insurance.
· For non-medically necessary visits to a doctor’s office, the co-pay charge is at their discretion. Doctors can charge up to a $20 co-pay. This charge is not applicable for visits that include preventative care, and you cannot get billed for a co-pay until you meet your annual Part B deductible in 2021 of $203.
· For visits to a hospital emergency room that does not result in an admission, the hospital can charge up to a $50 co-pay.
From our experience you can expect to pay around $95 to $125 a month for the Plan N if you are newly eligible to Medicare. Some areas may be a little lower or higher depending on gender and other factors.
Medicare Supplement plans that went out-of-date as of 2020
If you have had Medicare coverage for a while, or are over 65, you may have seen two other Medicare Supplement plan options which are the Plan C and Plan F. Both are only available to beneficiaries who became eligible for Part A before 2020. They are retroactively obtainable if someone was eligible for Part A prior to January 1st, 2020 and deferred getting Medicare Part B. In most cases the monthly premiums associated with these plans would not be cost prohibitive compared to the Plan G or Plan N.
A few other Medicare Supplement options
The list does not stop with the four plans listed above. Nobody can argue that Medicare Supplement is not robust when it comes to options, so there is also Plan D, Plan K, Plan L, and Plan M.
· Plan D is almost like getting Plan B with two bonus features. This plan includes the addition of skilled nursing facility care and foreign travel emergency care within its benefits package.
· Plan K and Plan L require that you meet your out-of-pocket yearly limit, and Part B deductible, before gaining access to 100 percent coverage. This restarts each year. Prior to that, Plan K covers most services by 50 percent, while Plan L provides 75 percent overage.
· Plan M is identical to Plan D in every aspect but one, it only covers the Medicare Part A deductible by 50 percent.
As you can see, the little quirks within each of these plans usually make them less-than-favorable to beneficiaries in need of comprehensive supplemental coverage.
Avoid getting bogged down in Medicare Supplement choices
As you can see there are a lot of options when it comes to your Medicare Supplement options, but it really only comes down to one or two plans. At Healthcare Solutions Direct, we help you narrow down your supplemental coverage choices to the plan that works best with your particular healthcare needs. Our transparent and personalized approach means we pair you with the right Medicare insurance, no matter what. We will also take the time to answer all of your questions, ensuring you have a complete understanding of your policy coverage. To learn more, and get the best insurance coverage, contact us today.
Contact Healthcare Solutions Direct to understand your options
Finding the right Medicare plan for your personal needs is essential to maintaining both physical and mental health in an affordable way. While getting the right coverage is important, finding the balance between care and cost is too. Let the insurance experts at Healthcare Solutions Direct help you navigate your Medicare plan options. We represent the major Medicare carriers in the US, allowing us to pinpoint the best choice for you. After pairing you with the right plan, we walk you through the entire process, supporting you the entire way. To learn more, contact us today.
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.