Medicare Supplement Plans, sometimes called Medigap Insurance, are not an Advantage Plan, Medicare Part C. They are offered by independent insurance companies to help to cover the healthcare costs that Parts A and B do not cover. In most states, there are approximately 10 plans to select from. Medigap plans are designated by letters, such as A through N. All plans with the same letter must offer the same coverage for Part A and Part B. However, different companies can charge different premiums for the same letter plan. Medicare Supplement Plans do not offer Part D drug plans.
Medicare Part A helps to pay for costs associated with hospitalizations. It helps provide coverage for inpatient hospital care, skilled nursing facilities, nursing homes, hospice care and home health care. You can enroll in Medicare during the 7-month period surrounding your 65th birthday starting 3 months prior to your birth month and ending 3 months after it.
Many people think that Medicare Part A is free healthcare, but that is not actually the case. Medicare Part A does have $0 premiums if you or your spouse have worked and paid into Social Security for at least 10 years. If you have not met that requirement it can cost up to $458 per month. Then like any other health insurance there are deductibles and co-pays. For a full breakdown of the costs, refer to our Medicare Part A 2021 Premium and Benefits table. Part A only contributes to the first 150 days of hospitalization and 100 days of skilled nursing facilities, nursing homes, hospice care and home health care. After that you are responsible for all costs incurred.
Medicare Part B helps to pay for the costs associated with outpatient care, durable goods, and doctor’s treatments. It covers the costs involved to diagnose and treat medical conditions along with preventative services. Unlike Part A everybody has a premium cost for Part B. The standard premium for Part B is $148.50 per month but depending on your Gross Income on your IRS tax return you may have to pay an Income Related Monthly Adjustment Amount (IMRAA) which is added to your premium. Again, like Part A, there are deductibles and co-pays for each type of care you receive. For a full breakdown of the costs, refer to our Medicare Part B 2021 Premium and Benefits table.
A Medicare Supplement Plan acts as a Secondary Insurance policy to your Medicare Parts A & B policies. That means that once the financial benefits of Part A & B have been met, the supplement plan will then take effect and cover some of the costs you incur. The amount of financial benefit the plan provides will depend on the plan’s coverage level. As the supplement plan is an extension of your Medicare plan you must go to a doctor or facility that accepts Medicare to be able to use it.
You have a 6-month Medigap Open Enrollment Period. This period automatically starts the month you’re 65 and have Medicare Part A and are enrolled in Medicare Part B (Medical Insurance). After this enrollment period, you may not be able to obtain a Medigap policy.
In most states there are Medicare Supplement Plans (Medigap Plans) with letters A through N. All plans with the same letter must supply the same coverage of Parts A and B, however the premiums for the same plan letter are typically very different between private insurance companies that offer these plans.
We have over 15 years of experience with Medicare Supplement Plans and have helped countless people find the plan that is right for them. We know what questions to ask to help you find the plan that best fits your needs now and in the future.
We build relationships with our clients. As changes occur in Medicare or Medicare Supplement Plans we keep our clients up to date to make sure that they still have the best plan for their needs. Most importantly there is NEVER any cost or obligation for our services.
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Depending on the plan and the state you live in, the premiums range from $40 to $210 when aging into Medicare in 2021.
Premiums vary among insurance companies, but the benefits of each standard Medigap plan are always the same. For instance, a Medigap Plan G policy offers set benefits no matter which company you buy it from. However, standard Medigap policies are different in Massachusetts, Minnesota, and Wisconsin.
You can apply online by copying and pasting:
Or call Social Security at: 800-772-1213
NO: If you receive COBRA benefits you are not longer working for this employer. So if you wait until these benefits have expired before enrolling in Part B, you won’t qualify for a special enrollment period for Part B. Instead, you’d likely pay late penalties, and you would be able to enroll only during the general enrollment period that runs from Jan. 1 to March 31 each year, with coverage not beginning until the following July 1.
STILL HAVE QUESTIONS?
If so our FREE Medicare Webinar is for you.
Each week we host a short online Educational Event on Parts A,B,C,D and Medicare Supplement Plans with a Question and Answer session.