How Medicare Supplements Work
Original Medicare doesn’t cover all of the costs of healthcare services and may leave you with substantial out-of-pocket costs. If you would like to mitigate these costs, Medicare Supplement Insurance may be right for you. Medicare Supplement Insurance, or Medigap, is a type of coverage that helps pay the costs left behind after Medicare pays their approved portion of your health care costs.
Medicare Supplement Insurance
Medigap plans are offered by private insurance companies as a means to make health care costs more sustainable for Medicare recipients. In exchange for premium payments, a Medigap plan will pay some or all of your out-of-pocket health care costs. There are currently ten Medigap plans and each offers a different arrangement of supplemental benefits. How much help you get depends on the plan you choose.
Choosing Medicare Supplement Plans
Medigap plans cover a specific set of benefits, up to a percentage amount. The benefits offered across all Medigap plans may include the following:
- Part A coinsurance or copayments
- Part A hospice care coinsurance
- Part A deductibles
- Part B coinsurance or copayments
- Part B deductibles
- Part B excess charges
- 3 pints of blood
- Foreign travel health emergencies
- Skilled nursing facility coinsurance
The percentage of each of these costs covered by your Medigap plan range from 50% to 100%. Work with a Medicare professional to determine which plan offers an arrangement of benefits that is attractive to you. Keep in mind, Medigap coverage is not available for people enrolled in Medicare Advantage plans.