Medicare Supplement Plan
Senior citizens and retirees covered under the Federal Medicare Plan may find gaps in the Medicare Part A and Medicare Part B coverage, particularly in prescription coverage, that can cause substantial financial burden.
A way to offset this burden is by subscribing to a medical plan that supplements incurred costs that Medicare will not cover. With such a plan, the subscriber pays a monthly fee, and, in exchange, the insurance offers additional medical coverage.
Known as Medigap, Congress standardized the available plans in 1998. All insurance companies offering Medigap, by law, must offer the exact same coverage per outlined plan. The prices will vary by insurance provider, and the providers are allowed to augment the particular plans with additional benefits.
To find the supplemental plan that is best for you, review the plan options and find the one that best meets your current and anticipated needs.
Organizations such as the American Association of Retired Persons (AARP) negotiate reduce rates with insurance providers and are a good place to begin your search for additional coverage once you know what coverage plan fits your needs.
Plan Types
There are 10 plan types, each designated with a letter. They are:
A: This plan costs the least but also covers the least. It is a good plan for people who can afford ordinary out of pocket expenses. It covers the Medicare Part A deductibles for hospital stays between 61 and 150 days, 100% cost coverage for an additional 365 days of hospital visits over the lifetime of the participant, up to three pints of blood per calendar year and the co-payment of Medicare Part B after the $100 yearly deductible.
(All subsequent coverage includes benefits of Plan A plus the stated additional benefits.)
B: This plan includes the deductible for the first 60 days of hospital stay.
C: More inclusive, this plan covers Plan B plus the co-insurance for Medicare Part A Skilled nursing home coverage, Medicare Part B annual deductible and medical attention while traveling abroad.
D: This plan includes plan B and C with the exception of the Medicare Part B annual deductible. Plan D also includes coverage for at-home recovery.
E: This plan includes plan C with the exception of the Medicare Part B annual deductible. Plan E also includes preventative screening.
F: This plan includes plan C plus 100% coverage on Medicare Part B doctor fees in excess of reasonable and customary charges.
G: This plan includes plan D plus 80% coverage on Medicare Part B doctor fees in excess of reasonable and customary charges.
H: This plan includes plan E without the preventative screening. Plan H also includes basic outpatient prescription drug coverage.
I: This plan includes plan D and also includes 100% coverage on Medicare Part B doctor fees in excess of reasonable and customary charges, as well as basic outpatient prescription drug coverage.
J: This plan includes plan F and also covers at-home recovery, preventative screening and extended benefits for outpatient prescription drug coverage.
