A lot of people assume that Medicare pays 100% of the medical expense, this is not the case. There are basically two Medicare expenses that Medicare will cover. There is the Part A which is considered as the hospital charges. Then there is the Part B, which is considered as the physician charges. It is very important to realize that Medicare only covers 80% of the total Medicare-approved expense. If you want to take care of the 20%, then you will need a Medicare supplement plan (a.k.a. Medigap) to take care of that. There are different kinds of Medigap policy, and it is important that you compare Medicare supplement plans carefully and properly so you can get the one that is ideal for your situation.
As mentioned before, there are several different kinds of Medigap plans, ten to be exact. It is your responsibility to understand them and match your current budget and health to the plan that fits your needs best. But don’t worry! We’ll help make the process as easy as possible.
While there might be 10 plans available there really are on a few that make sense for most people. One of our agents can easily cover the details of all the plans to see which one is best for you. Below are some of the most popular Medigap plans in the industry.
Medigap Plan F
This plan has long been one of the most popular as it offers full coverage of all Medicare approved expenses. Medicare Part B will pay the 80 percent of your doctor’s bills and Plan F will pay the remainder with no co-pays, no deductibles, and no coinsurance. This of course comes with a price tag, however when compared to most employer coverage that people must pay for out of payroll deductions this plan is very reasonably priced. While most group coverage has what is called “80/20” where your plan will pay 80 percent after you meet a deductible, and you are responsible for 20 percent, Plan F has none of this. 100 percent coverage of the gaps!
Plan F covers hospitalization. As well, it offers 365 additional days of coverage after Medicare Benefits. It also covers medical expense, typically 20 percent of the total bill. However, it must be Medicare-approved expense. Medigap F also covers for 3 pints of blood each year, in case you need one for blood transfusion.
Medigap Plan G
One big difference with Medigap G is that unlike Plan F, you must pay the annual Part B deductible out of pocket yourself before Medicare or the plan will begin paying. After that the plan picks up 100 percent of the gaps in Medicare. Plan G used to pay only 80 percent of Part B excess charges however this was changed in 2010 and it now pays 100 percent. These kind of situations typically happen when the medical service providers and doctors do not accept the assigned rates from Medicare. What happens is the beneficiary is then responsible for paying the these extra charges, which could be up to 15 percent extra. Medigap Plan G also covers foreign travel emergency, although it has limitations it is still better than none. For instance, if there was an emergency out of the country the plan would pay 80% of emergency costs after you meet a $250 deductible. There is a lifetime maximum of $50,000 using this benefit.
Medigap Plan N
This is another popular Medigap plan. A lot of professionals would recommend this plan as an alternative to Medicare Advantage Plans and for good reason. For a relatively low monthly premium you can remain network-free and still visit any doctor in the country that accepts Medicare. This plan has the lowest premiums of all three and is a very good option for those who are healthy and only visit their doctor once in a while.
What’s great is that Medigap N pays the Part A deductible of Medicare. You would still have to pay the Medicare Part B deductible yourself just like Plan G.
These are only a few of the many plans, therefore it is best that you work with one of our specialists to help you compare Medicare supplement plans to find the one most ideal for you. You can begin by entering your zip code at the top of the page to get an idea of the cost of each plan.