Medicare Supplement Plans cover the Gaps left by original medicare coverage. The following diagram depicts the medicare options and the color coded table corresponds to the “gaps” each lettered supplement plan covers. For example, the F plan covers all the gaps while the A plan only covers the Part B coinsurance. Not all plans are offered by all insurance companies and some even offer fitness plans augmenting their other coverages. Medicare eligibles after January 1, 2020 are not permitted to purchase any supplemental coverage which pays the Medicare Part B deductible, specifically Plans C and F. Those who are already enrolled or are in a Delayed B status, may still enroll in those plans. Premiums typically increase every year. As long as you pay your premiums, you are guaranteed coverage. Outside of either your initial or a special enrollment period, you would need to health qualify for new coverage.
☑ Hospitalization – Medicare Part A coinsurance plus coverage for 365 additional days after Medicare benefits end.
☑ Medical Expenses – Medicare Part B coinsurance 20% of Medicare-approved expenses.
☑ Blood – First three pints of blood each year.
☑ Hospice – Medicare Part A coinsurance
Medicare supplement insurance plans have been around as long as Medicare and each plan specifies which “gaps” they are covering as well as what your liability for each is. Medicare supplements are offered by insurance companies, not Medicare. The coverage under each type of plan is standardized through Medicare but the pricing and any added services are up to each independent carrier. Additionally, which supplements to offer and underwriting eligibility are under the purview of each company as well. The colored font on the supplement table corresponds to the same color depicted on the diagram above.
The G plan was reintroduced in 2015 as a good alternative between the F and N plans. Like both the F and N, the G plan covers 100% of the hospital gap services up to and including 100 days. It is priced competitively with the N plan but only charges the annual deductible, therefore no co pays. Typically this is my plan of choice, as all your costs are known. However, many companies are not offering this option under guaranteed issue if you opt to delay your enrollment into Medicare beyond your initial enrollment period. Under guaranteed issue, you would need to be underwritten to elect this option.
The N plan is the “value” plan. Introduced in 2010, this plan is marketed to clients who wanted to exchange their higher premium for one which charged co pays for some services and an annual deductible. The plan does cover 100% hospital services up to and including 100 days. The services under Part B may charge a copay up to but no more than $20 with the exception of $50 per ER visits where beneficiary is not admitted. I believe the G plan is currently a better value, since it does not charge any co-pays. The copays also are charged if rehab is needed.
