Medicare Supplement plans are also referred to as Medigap plans. The term is interchangeable but is describing the same type of plan. A Medicare Supplement is a plan offered by private insurance companies that helps cover the Medical Benefits not covered by original Medicare A and B.
Generally speaking: Medicare A and B covers a portion of Medical expenses. Part A covered in patient hospital services (minus a deductible and cost share) and part B covers 80% of all other outpatient medical services. A Medicare Supplement will cover the costs that original Medicare does not.
How Does it Work?- When you receive medical services, the doctors and hospitals bill your Original Medicare card. After Medicare pays their portion, the remaining charges are sent over to the Medicare Supplement to pay for the remaining portion. There is no paperwork for the member to submit as it is all done internally.
What are the choices- There are a number of companies that offer Medicare Advantage plans such as AARP/United, BCBS, Aetna, Sterling, Etc….. There are also a number of plans (A through N)
The plans are standardized in most states meaning the benefits can not change from company to company. Only the price may be different. So if 15 companies offer a Plan F, the benefits will be the same for all 15 plan F plans with the price being the only difference.
Most popular plans are….
Plan F- Covers 100% of your costs
Plan N- Covers all costs except (Part B deductible of $144) ($50 copay for ER) and doctors are allowed to bill up to $20 for their services.
Plan L- Covers 75% of left over costs.
Plan F High Deductible- Will start to cover after a $2,110 deductible has been hit.
Please note that Medicare Supplement plans do not come with drug plans. Rx plans must be purchased separately. Also Medicare Supplement plans should not be confused with MSA Plans as they are very different from each other