Finding the right supplemental insurance for Medicare might seem tricky at first. You have ten plans to choose from and all of them have slightly different benefits. Some people simply want every bill paid so they’ll opt for the most popular plan which is Plan F. Others might be extremely healthy and even get the high deductible F. These days in this economy where every dollar counts more and more people are enrolling in a Medicare Supplement Plan N.
What Are The Differences in Plans?
As mentioned above Plan F pays 100 percent of the gaps in Medicare. It is however also the most expensive plan available. That being said for a monthly premium the plan will pay everything that Medicare does not for all approved charges.
Another popular plan is G. Plan G offers identical benefits to Plan F except that it does not pay the Medicare annual Part B deductible. Prior to Medicare paying anything someone must pay the annual deductible of around $150. This is a once-per-year cost and is based on the calendar year. After this is paid Medicare will begin paying. With a Plan F the plan pays this for you. In reality you pay higher premiums for the plan to pay it for you, and the extra you pay often exceeds the amount of the deductible (in many cases by hundreds of dollars). With Plan G you must pay this deductible yourself out-of-pocket and once it is met the plan pays 100 percent of the gaps. The benefit of this plan is that you pay lower monthly premiums over Plan F which actually saves you money.
With a Plan N Medicare Supplement you still must pay the Medicare Part B deductible. Once that is met you will have up to a $20 co-pay for doctor’s visits. There might be no co-payment when you visit or perhaps just a few dollars but it will never exceed $20. Some other benefits of Plan N are:
- A $50 co-pay if you visit the emergency room but you are not admitted
- Does not cover any Part B excess charges
What Are Part B Excess Charges?
This often confuses many people because no one wants to read the words “excess charges”. This simply means that if the doctor does not accept the assigned rates from Medicare he or she can charge up to 15 percent extra of what Medicare normally would pay. For example let’s say you go on a routine visit and Medicare states the amount to be charged is $100. If the doctor does not accept assignment he or she could then charge $115 to you or your insurance company. On a Plan N you are responsible for the additional $15.
It’s estimated that over 90 percent of all doctors in this country accept the assigned rates from Medicare. Just ask your doctor if they do and if so you’ll know they won’t be even charging you extra.
With so many choices of plans it can get confusing. The first step is determining how much coverage you would like to have and factor in your budget as well. A Medicare Supplement Plan N is a great way to save on monthly premiums.