Medicare Supplement

What is Medicare Supplement Insurance?

Medicare supplement plans are also known as Medigap or Medsups. These policies are designed to cover healthcare costs that Original Medicare does not cover.

What does a Medicare Supplement Cover?

Original Medicare covers 80% of your Part B services. This can be your preventive care, outpatient care, ambulance services and more. A Medicare supplement plan will pay the remaining 20% of these services. The policyholder will pay the same premium each month, regardless of how much of the benefits they are using. This predetermined monthly costs appeals to many, allowing you to know exactly what to budget for.

Great for Those who Travel Often

Another highlight of Medicare Supplements is they are generally accepted anywhere in country, making these ideal for travelers. Some like the simplicity of Medigap plans because they don’t have to worry about the annual renewable component, but be aware these plans may have price increases as a beneficiary ages and as claims are made in their particular class and zip code. it is also important to note that Medigap Plans do not cover prescription drug coverage. This will be an additional cost.

Guaranteed Issue Plans 2020 and Beyond

In 2020 MACRA is making changes to Plan F. Starting in 2020, Plan F will no longer be available to those new to Medicare. Since Plan F is not available, rates will start to rise like other discontinued plans. The math is pretty simple as to why Plan F rates will increase. Without new members allowed to purchase Plan F, there is not a class of healthy newer members to offset claims made by those grandfathered into Plan F. This will make Plan F support itself with rate increases.  MACRA is also affecting Medicare coverage and how it manages Guaranteed Issue cases. Beneficiaries with a guarantee Issue allowance starting in 2020 will have a choice of Medigap Plan G (for the first time as guaranteed issue) and Plan D. Guaranteed Issue enrollees are those that are losing their existing coverage. Guaranteed Issue will also include Medicare Advantage members. If you have a Medicare Advantage plan and your plan sponsor decides they want to terminate or no longer service your area of coverage or you move from one service area to another, you will be granted a Guaranteed Issue right to purchase a Medicare Supplement policy without having to meet healthcare eligibility. For many with chronic conditions this is a break they may need.

Medicare Supplements vs. Medicare Advantage
Medicare Supplements have been the mainstay for a large percentage of older Medicare beneficiaries. However newer Medicare Advantage plans have improved over the last few years, making them very appealing to those paying high monthly premiums with Medicare Supplement policies.

If you have a Medigap plan and are in the market for a rate reduction or interested in learning about other options take advantage of our complimentary benefit review. Fill out to form below to find out if you have a cost saving opportunity or alternative.

Click here to read our current blog post to compare Medigap Plan G and Plan N

Compare 2020 Medicare Supplement Plans