Confusion about Medicare Supplement Plans

It is very confusing when you become eligible for Medicare. There are different to Medicare; Part A, B, C, and D. Then there are different Medicare supplement plans, also known as Medigap Plans. They have letters A through N in most states. So what does this mean and how can you make a choice? Welch Insurance can help explain and advise on which Medigap Plan would work for you.

Basics of Medicare Supplement Plans

Basic Medicare helps with hospital expenses through Part A. Basic Medicare helps with doctor and outpatient services through Part B. If you or your spouse has worked and paid into Medicare for 10 years, you will not have a premium for Part A. In 2022 your Part B will have a premium of $170.10, which can be higher, depending on your income. The premium for Part B can be increased, and also Part D may have an additional premium due to IRMAA (Income Related Monthly Adjustment Amount.)

What Medicare Supplement Plans Cover

Medigap plans help pay for your costs of Part A hospital and Part B doctors and outpatient services. For example; Medigap Plan G will pay all your costs except for the Medicare Part B deductible.

How to evaluate which Medicare Supplement Plan works for you

First, you need to consider your medical condition. If you have doctors or providers that you want to keep, you need to confirm that they will accept Medicare. One reason to have a Medicare Supplement Plan is to have the flexibility to go to any provider, hospital, or doctor that accepts Medicare. You can self-refer with a Medicare Supplement Plan. You do not need to ask a primary care physician for a referral.

What are the costs with a Medigap Plan?

The premium of Medicare Supplement Plan G will cost more than other Medigap plans because it has the highest benefits. Although, regardless of the insurance company, the basic benefits for each plan letter have to be the same. The insurance company can offer you additional benefits, but the basic coverage has to be the same. Different insurance companies can charge different premiums for the same plan. One company can charge as much as $30 or more a month for the same plan. Medigap Plans do not come with a drug plan, so you need to also get a Part D stand-alone drug plan.

Conclusion:

You need to understand your costs for Medicare Part A and Part B. You should consider your medical condition and what services you will need. If flexibility is important to you, any provider that accepts Medicare must accept your Medigap Plan. Remember all Medigap Plan letters must give the same basic coverage. However, there can be a large monthly cost difference depending on the insurance company. Your budget for a Medicare Supplement Plan needs to also include a stand-alone drug plan. Welch Insurance can help guide you.