Medigap Plan D is one of the 12 Medicare supplement plans and it helps to cover for holes that Original Medicare left behind.
Beneficiaries often get confused and think that Medicare Part D and Plan D are the same things. So, it is essential to know that those 2 Medicare coverage options are not the same thing.
Medicare Part D covers prescriptions for drugs and medications. Medigap Plan D is a part of a Medicare supplement plan and not one of those plans has drug coverage included.
Medigap Plan D isn’t that comprehensive in comparison to the other Medigap plans on the market but it has several benefits which include:
Part A hospital coinsurance and hospital costs for an additional 365 days after Original Medicare benefits are used
Part A hospice care coinsurance payment and copayments
Part B copayment and coinsurance payment
First three pints of blood
Skilled nursing facility care coinsurance
Part A deductible
80% of a foreign travel emergency
PLAN D DOESN’T PROVIDE COVERAGE FOR:
Part B deductible
Part B excess charges- the lack of the excess charge may not be a concern because some states don’t allow it and most of the providers accept Medicare.
You’ll need to cover for Medicare Part B deductible which is 226$ in 2023. After your deductible is met, you are 100% covered for other costs.
You will be also responsible for a monthly premium that may cost you between 120$ and 200$ each month.
Even though it doesn’t happen often, if in any case you meet with Medicare excess charges you’ll need to pay up to 15% above a Medicare service-approved price if your healthcare provider doesn’t accept Medicare’s assignment.
Every individual who is eligible for Medicare can enroll in Medigap plans during the Medigap Open Enrollment period which begins the first day of a month when you are 65 and already enrolled in Medicare Part B.
However, if you enroll later, not in the initial enrollment period, instead of during the annual enrollment period you may be responsible for a late enrollment penalty.
This means that you would pay higher monthly premiums as long as you have that plan. So, it is recommended to enroll in all Medigap plans when you are first eligible for them.
For more information about asset based long term care, reach out to Texas Medicare Advisors today.
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