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Medicare Supplement Plans

Medicare Supplement Plans, also known as Medigap policies, are sold by private insurance companies and will pay some or all of the health care costs that Original Medicare (Medicare Part A & B) doesn’t cover. Supplement plans were created to cover the gaps in Medicare that you would normally have to pay. These costs can include copayments, coinsurance, deductibles and excess fees. These types of plans help make your annual health care budget very predictable and lower your out-of-pocket spending.

10 Key Factors About Medicare Supplement Plans

#1 | You Are Still Part of Medicare

Medigap Plans pay the copays left behind by Medicare, so you must have Part A and Part B (also known as Original Medicare) to apply for a Medicare Supplement Plan.

#2 | Fills In The Gaps Of Medicare

Medicare Supplement plans are specifically designed to pay some (or all) of the costs left behind by Original Medicare. These costs include deductibles, co-pays, coinsurance, and excess fees that Medicare does not cover.

#3 | No Networks, No Referrals

A vital advantage of Medicare Supplement plans is that there are no networks and no referrals required. Meaning, you can use any doctor or hospital in the country that accepts Medicare, regardless of the insurance company that provides your supplement coverage. So, for example, whether you have Aetna Plan G, or a Mutual of Omaha Plan G, your networks would be the same. Furthermore, Medicare Supplement plans do not require a referral to see a specialist. You have the choice to see any specialist in the country who accepts Medicare regardless of which insurance company you have your coverage through.

#4 | Plans Are Standardized

Medicare intentionally designed ten different Medicare Supplement plans for all insurance companies to sell to consumers like you. Each of these plans are associated with a letter, the plans offered are: A, B, C, D, F, G, K, L, M and N. Additionally, Medicare sets the benefits for each of the ten Medicare Supplement plans to ensure all insurance companies offer the same exact benefits for each plan. So, for example, Plan G sold by Aetna is identical to the Plan G offered by Humana, BCBS, or any other company! Simply put, it doesn’t matter which insurance company you get your coverage through; the only difference is the price you pay.

#5 | Same Plan, Different Prices

When you start shopping for a Medicare Supplement Plan, the first thing you will notice is that insurance companies charge wildly different prices for the exact same coverage. Just the same way retailers such as Walmart or Target charge different prices for the same product; insurance companies work the same way when it comes to Medicare. So what are rates based on, you might wonder? The premiums companies charge are based on your age, gender, tobacco use, and zip code. It’s important to get a rate comparison of all the top companies in your area to find the best plan for you at the best rate.

#6 | Simple Claims Process

Through a process call “automatic crossover”, Original Medicare and your Medicare Supplement insurance agency automatically work together to pay your healthcare bills, so you don’t have to worry about coordinating bills or paying claims.

#7 | Guaranteed Renewable

Medicare Supplements are guaranteed renewable, which means an insurance company can never cancel your plan due to health conditions as long as you pay your plan premiums.

#8 | Drug Coverage (Part D) is Separate

Another benefit of a Medicare Supplement plan is that you have the freedom to choose any drug plan you want, independent of your healthcare coverage. This allows you to separately pick the best drug plan that will offer your medications for the lowest cost available. Thus, giving you the flexibility to ensure you are saving the most money possible on each part of your Medicare coverage.

#9 | Household Discount

Most insurance companies offer a household discount ranging from 5% up to 12%. Qualification rules differ between companies, but most make this discount available as long as you and your spouse have your Medicare Supplement coverage through the same company.

#10 | Individual Coverage

Just like with all Medicare coverage, Medicare Supplement plans only cover one person per policy. This means you have the flexibility to choose the same insurance company as your spouse, or select a different company, whichever one saves you individually the most money. 

Plan G vs. Plan N

The two most popular Medigap Plans for 2021 is Plan G and Plan N. Plan G is the most comprehensive plan out of the 10 Medicare Supplement Plans, as it offers the highest level of coverage. The second most popular plan is Plan N because the coverage is very similar to Plan G; however, the only difference is you are responsible for your doctor visit copays, E.R. visit copays, and Medicare Part B excess charges. In this video here, explain some more key differences and what to consider when choosing a plan that works best for you.

Read More About Medicare Supplement Plan G Vs Plan N

Important Things to Know

Medicare Supplement Plans are STANDARDIZED:
The benefits of Medicare Supplement plans are set by Medicare to ensure all insurance companies offer the exact same benefits for each plan! That means Plan G sold by Blue Cross Blue Shield is Identical to the Plan G offered by Aetna, Humana, or any other company!

They are designed to make it EASY for you to compare prices!
Medicare purposefully named Supplement plans with easy to remember letters such as Plan N and Plan G. They did this because they want it to be EASY for consumers to shop around for the best price! This is something insurance companies don’t want you to know!

Coverage is identical between companies EXCEPT THE PRICE!
Even though the coverage is identical insurance companies are allowed to set their own prices. Prices are based on your age, gender, and where you live among other things. Finding the right Medicare Supplement plan for you all depends on connecting you with the company that offers the lowest rates based on your personal information. 

Medicare Supplement Comparison Chart

***Note: Plan availability can varies based by insurance company and your location.

***Note: Plan F is being phased out ONLY for people who join Medicare after January 1, 2020. So if you are new Medicare, Plan F is not an option. However, if you are currently on Medicare, you can still switch to Plan F with the acception of passing the health questions given by the insurance company.

How To Find The Best Supplement Rates