Medicare Supplement Insurance Plans


What is a Medicare Supplement?

Medicare Supplement insurance plans are also known as Medigap policies. Medigap policies do just as their name implies; they fill in the gaps left behind by Original Medicare Part A and Part B, such as your deductibles and co-insurance. A Medicare Supplement insurance plan can only be used with Original Medicare Part A and Part B. If you have enrolled in a Medicare Advantage plan, you cannot purchase a Medicare Supplement unless you use an enrollment period to switch back to Original Medicare Part A and Part B.

With a Medicare Supplement insurance plan, you will need to find creditable prescription drug coverage with a stand-alone Medicare Part D plan.

What does a Medicare Supplement cover?

People with Original Medicare Part A & Part B usually choose to purchase a Medicare Supplement insurance policy and a stand-alone prescription drug plan. Many people newly eligible for Medicare are surprised to learn Medicare only covers 80% of your Part B expenses. You can choose a Medicare Supplement insurance plan, or Medigap policy, to help cover the remaining 20%, among other things.

What does a Medicare Supplement cost?

Medicare Supplements, or Medigap policies, are all standardized and identified based on a letter of the alphabet. Some examples of standard Medicare Supplement insurance plans are Plan F, Plan G, and Plan N. While each Medicare Supplement plan type is slightly different, all Plan G’s regardless of their monthly premium and what insurance company offers that plan, are the same.

Carrier #1 – Premium = $204.65
Carrier #2 – Premium = $197.12
Carrier #3 – Premium = $93.23

Your monthly premiums can increase every year with a Medicare Supplement insurance plan. Increasing monthly premiums, known as rate increases, is one of the many reasons why Medicare beneficiaries should look to a licensed insurance agent to help them. Shopping for Medicare Supplements can help lower your monthly premium and never make changes to the coverage you receive. You can keep your same doctors and pharmacies with a new Medicare Supplement plan.

What should I know before purchasing a Medicare Supplement?

During your one-time enrollment window, you are guaranteed the right to purchase a Medicare Supplement plan. Your health history and current health status do not matter when you buy a plan during this six-month window.

A Medicare Supplement policy allows you to choose your own doctors and hospitals.

You do not need a referral to see a specialist if you have a Medigap policy.

You will have nationwide coverage and can use your Medicare Supplement anywhere in the United States.

The insurance company can never drop you or change your coverage due to a health condition with a Medicare Supplement. This is known as guaranteed renewability.

You must have Original Medicare Part A & Part B to buy a Medigap policy.

Medicare supplement insurance plans only cover one person, your spouse or partner must have his or her own Medigap policy.

You can drop your Medigap policy at any time, there is no annual election period for Medicare supplements.

Many insurance companies offer household discounts if two or more people enroll in Medicare supplement plans from the same company.

Medigap policies do not include Part D coverage for your prescription medication, so you’ll need to purchase a stand-alone Medicare Part D prescription drug plan.

Jamie Sholom is Middlesex County’s licensed insurance agent focused on Medicare health plans. He has helped hundreds of Medicare eligibles learn more about their health plan options.

If you’d like a no-cost, no-obligation review of your current insurance coverage, or shop for better prices on your Medigap policy, give Jamie a call at 732 658 5100

You can also click here to request a time to contact Jamie Sholom at Seniorstar Insurance.

Don’t forget to download your Medicare & You handbook by clicking here.