Medicare Supplements (also known as Medigap plans) fill in some of the gaps in coverage left by Original Medicare. The plans are standardized and each plan (labeled A-N) pays some or all of the remaining deductibles and coinsurance. You can compare the plans here , but there are a few benefits of all plans which is why beneficiaries love their supplement plans.
- Predictable Out of Pocket Costs – Even though Medicare’s deductibles increase each year, the plans cover the same percentage of the costs. Therefore, as costs rise, so does the amount your supplement covers.
- No Provider Networks – With a Medigap plan, there are no networks. If your doctor accepts Medicare payments, then your supplement is also accepted. No worries about whether your doctor is in/out of network.
- No Referrals or Preauthorization – With a supplement plan, you do not need a referral or preauthorization to see a specialist. In addition, there is no increased copay/coinsurance to see a specialist. Specialists are covered the same as your primary care physician.
- Guaranteed Renewable – Except for non-payment or premium, your Medicare Supplement cannot be canceled. There is no worries that health risks or costs will cause your policy to expire.
- Limited Out of Pocket Costs – The two most popular plans (F&G) leave you with little to no out of pocket costs. With Plan F, virtually any Medicare approve medical procedure is covered at 100%! Plan G is similar leaving a beneficiary with only the Part B deductible ($166 in 2017).
- Separate Prescription Plan – The prescription plans are not included with the supplements. Whereas Medicare Advantage plans typically have a prescription plan bundled with it. This may sound like a benefit, but it actually removes the flexibility from you. With a Medigap plan, you can shop each year for a different more cost effective prescription plan instead of being tied down to just one. This could save you a hundred dollars or more each month.