Medicare Supplement Plan Comparison

Medicare Supplement plans are also known as Medigap insurance. Medicare Supplement plans are offered by private insurance companies and are meant to help with some of the out-of-pocket costs associated with Original Medicare, such as copayments, coinsurance, and deductibles.

These plans act as supplemental insurance to Original Medicare (Medicare Part A and Part B), which you’re required to have to qualify for a Medicare Supplement plan in the first place.

This means if you have a Medicare Supplement plan, Medicare will cover the necessary medical expenses first and the Medicare Supplement plan will take care of the remaining out-of-pocket costs.

There are 10 Medicare Supplement plans, and they are labeled from Plan A to Plan N. We will now get into the most important details of each plan with the intention of informing you and helping you decide which plan would best suit your budget and healthcare needs.

Plans A and B

Plans A and B offer the least amount of coverage of the 10 supplement plans. However, they are also significantly less expensive than the others. Medigap Plan A is part of the Medicare supplement that helps to cover a small amount of the costs that aren’t covered by Original Medicare.

It is a basic Medigap Plan and it has the least amount of benefits in comparison to other Medigap plans. So, if you’re looking for decent coverage at a comparatively low rate, either of these may work for you.

Plan A covers:

  • Part A Coinsurance & Hospital Costs
  • Part B Coinsurance or Copayment
  • First 3 Pints of Blood for Transfusions
  • Part A Hospice Care Coinsurance or Copayment

 

Plan B offers identical coverage, also including, however, your Part A deductible.

Plans C, F, and G

Medigap Supplement Plan C covers most of the costs that are left by Original Medicare except the Medicare Part B excess charges. Plan C covers:

  • Part A Coinsurance & Hospital Costs
  • Part B Coinsurance/Copayment
  • First 3 Pints of Blood for Transfusions
  • Part A Hospice Care Coinsurance/Copayment
  • Skilled Nursing Care Facility Coinsurance
  • Part A Deductible
  • Part B Deductible
  • 80% of Foreign Travel Emergency Care

 

Plan G, rather than covering your Part B deductible, covers Part B excess charges instead and is one of the best options out of all supplement plans for all Medicare enrollees because it is the most extensive plan for new Medicare beneficiaries.

Signing up for this plan will lower your out-of-pocket costs greatly compared to what they would be with Original Medicare only. After you cover the annual deductible, your coverage will be 100% for all of the additional medical costs in that year.

Plan F is the highest-coverage option of the 10 plans. It includes coverage for both the Part B deductible and excess charges, unlike Plans C and G, which only cover one or the other.

It is important to mention that Medicare Plan F is not available anymore due to a change in federal law. People who have become eligible for Medicare after December 31, 2019. do not qualify for Plan F.

However, Plan F continues to be available to everyone who became eligible for Medicare before that date.

Plans K and L

These plans cover a certain percentage of benefits. Plan K, for example, covers:

  • 100% of Part A Coinsurance and Hospital Costs
  • 50% of Part B Coinsurance/Copayment
  • 50% of the First 3 Pints of Blood for Transfusions
  • 50% of Part A Hospice Care Coinsurance or Copayment
  • 50% of Skilled Nursing Care Facility Coinsurance
  • 50% of the Part A Deductible

 

Plan K will cover the first 50% of these expenses, while you pay the remaining costs out-of-pocket. This helps to reduce your overall monthly premiums.

This supplement plan is not as comprehensive as some other Medicare supplement plans but it is good if you don’t mind cost-sharing.

If you want more than 50% coverage but still want a smaller monthly premium than the higher coverage plans (Plans C, G, and F), Plan L covers the exact same benefits (including 100% of Part A coinsurance and hospital costs) but at 75% rather than 50%.

Since Plan L covers 75% of the Original Medicare costs, you’ll need to pay for 25% of the remaining costs and you also need to pay in full for expenses that are not covered by Medigap plan L.

Plan M

Plan M is a good “middle-of-the-road” option. It offers similar coverage to plans D and N, but with a lower percentage of your Part A deductible.

This means a slightly lower cost than the other two, and significantly less expensive than the highest coverage options (Plans C, F, and G).

Plan M covers:

  • Part A Coinsurance & Hospital Costs
  • Part B Coinsurance/Copayment
  • First 3 Pints of Blood for Transfusions
  • Part A Hospice Care Coinsurance/Copayment
  • Skilled Nursing Care Facility Coinsurance
  • 50% of your Part A Deductible
  • 80% of Foreign Travel Emergency Care

Plans D and N

These two plans are seemingly out of place. Why are they grouped together here? Well, let’s first take a look at what coverage Plan D has to offer.

Plan D covers:

  • Part A Coinsurance & Hospital Costs
  • Part B Coinsurance/Copayment
  • First 3 Pints of Blood for Transfusions
  • Part A Hospice Care Coinsurance/Copayment
  • Skilled Nursing Care Facility Coinsurance
  • Part A Deductible
  • 80% of Foreign Travel Emergency Care

 

Plans D and N offer the exact same list of benefits, down to the percentage. The difference then lies in your copayments. With Plan N, you will have to pay a copayment for doctor’s visits and emergency care. With Plan D, these costs are accounted for in your monthly premium.

If you are trying to choose between these plans, you will have to decide by preference—would you rather pay a bit more out-of-pocket when you receive medical care, or, would you rather pay it in advance on a monthly basis?

The more often you anticipate needing doctor care or hospitalization, the more you may want to consider Plan D, and vice versa.

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With so many options, it can seem impossible to compare plans—thankfully, we can do that for you. We will work carefully to find the best plan for your health and budgetary needs. If you’re ready to get started, call Texas Medicare Advisors at 512-900-3008.

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