Medicare Supplemental Insurance

Look before you buy. Medicare Supplemental Insurance plans may have differences, but in general they are all the same from one company to another. A careful review of Medicare plans, along with the wrap-around Medicare supplemental plans can save money. Don’t just go for the least expensive monthly premium; that could cost significant dollars in the long run.



Medicare coverage is a government sponsored health insurance plan for individuals age 65 and older. Medicare covers most medical costs, but certain benefits are covered at 80 percent, leaving the individual responsible for the remaining 20 percent of healthcare costs. These costs, which are referred to as co-payment amounts, could be significant if a person is on a fixed income. There are Medicare supplemental insurance policies are available to help cover the out-of-pocket costs not covered by Medicare.



A supplement plan covers some of the medical costs that Medicare coverage does not. Medicare supplemental coverage is made up of 12 insurance plans. There are certain coverage levels included in all supplement plans. Most major insurers offer Medicare supplemental coverage plans called Medigap policies.



Medicare supplement plans range from levels "A" through "L". The different levels offer different benefits that pay for coverage after Medicare coverage payments stop. The plans have costs commiserate with coverage levels. For example, some insurers will offer a Medicare supplemental coverage at levels "F" and "J" that have a $2,000 deductible before the coverage starts. A higher deductible may mean lower monthly premiums, but be aware that the total costs for a serious illness could be higher.



Each level of Medicare supplemental plans has its differences. For example:



• Medicare Supplement Plan A covers Part B coinsurance which is usually 20 percent of outpatient costs. It also covers any hospital coinsurance, 365 additional hospital day’s coverage, and blood deductibles.



• Medicare Supplement Plan B covers all the things covered in Plan A, but also covers skilled nursing coinsurances.



A careful review of all the plans should be undertaken in order to fully understand coverage levels, annual premium costs, coverage maximums, and non-covered benefits and expenses. There are charts available from Medicare that clearly delineate the basic Medicare coverage alongside each Medicare supplemental coverage plan.



Current healthcare needs are important to consider. But equally important is to anticipate the expense of major or catastrophic illnesses that may occur. Total out-of-pocket expenses have the potential to be higher with lower the annual premium plans should an illness occur. When reviewing Medicare supplement plans, review the basic Medicare coverage first, then wrap around the supplemental policies.



Every state does not offer the same levels of Medicare supplement plans. But, all Medicare supplemental insurance plans are the same, no matter what company offers the plans. Paying higher premiums do not mean more benefits. Purchase a Medicare supplement policy within the first six months after enrolling in Medicare coverage Part B. This is considered the open enrollment period where pre-existing conditions do not apply.