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Medicare Supplemental Insurance Plans

There are 10 Medicare Supplement Plans Medicare beneficiaries can check while trying to cover the gaps of original Medicare. This Medicare Supplement Policy is commonly called a Medigap Plan and most people will receive a “Choosing a Medigap Policy” when first becoming eligible for Medicare.

Medicare Supplemental Insurance Plan F    

A Medicare Supplement Plan F — the most common and comprehensive plan available — is commonly known as the “best medicare supplement plan”. However, the “best medicare supplement plan” is the Medigap policy that works best for the individual.

Medicare Supplement Plan F is a common plan, since this medigap policy fills in the “gaps” of Medicare. Because its coverage picks up all the deductibles, coinsurance and copays that Medicare misses, it seems like Medicare Supplement Plan F may be one of the best medicare supplement plans available.

Plan J Medicare supplement coverage went away in 2010 with the Medicare Modernization Act. The Medicare Gap coverage it provided was even better than Medigap Plan F, since it included drug benefits and other services that no other Medicare Supplemental plans offered. I remember in the early 2000s, when everyone wanted Plan F or Plan J because they were the best medigap plans in the market. Since Plan J is non-existent, Medicare Supplement Plan F brings in more annualized premiums than any other medicare supplement plan.

Medicare Supplement Plan Comparison

Medigap Plan Benefits A B C D F* G K L M** N**
Basic Benefits:
Hospitalization & Preventative Care
x x x x x x x x x x
Basic Benefits:
All Other
x x x x x x 50% 75% x x***
Part A Deductible   x x x x x 50% 75% 50% x
Skilled Nursing Coinsurance     x x x x 50% 75% x x
Part B Deductible     x   x          
Part B Excess Charges Benefits         x x        
Foreign Travel Emergency     x x x x     x x
Out-of-Pocket Annual Limit             x x    

* There is also a high-deductible Plan F.
** Feature higher cost-sharing and lower anticipated premiums
*** Insured pays up to $20.00 copay for office visit, $50.00 copay for emergency room visit

When reviewing Medicare Supplemental Plans, consider these important factors:

  1. Plan Cost: you need to look at the pricing of several different carriers before choosing a policy.  All these carriers offer the same basic benefits, but the real difference is the price of the Medigap plan.
  2. Carrier Financial Stability: AM BEST is a rating agency that specializes in rating carriers on their financial capacity.  Medicare Insurance Finders does not recommend choosing a Medicare Supplement Carrier rated lower than a B+. An insurance company providing Medicare Supplements should offer high financial stability, since you will have this product for several years. It’s not fun switching carriers due to financial issues, plus it could make it extremely difficult to switch if you have health issues. A Medicare beneficiary would have to apply for a Guaranteed Issue Plan if they could not qualify.
  3. Loss Ratios: If a company has high loss ratios, they will have high rate increases — BOTTOM LINE.  Medicare Supplement Plans tend to have higher loss ratios with carriers who price themselves as the lowest Medigap Plan on the market. Be careful about this.
  4. State Laws: some states have different laws like the following:
    1. Texas Medicare Supplements – no gender rating and no rate ups.
    2. California Medicare Supplements – Sunshine Law allows Guaranteed Issue Rights on your birthday month.
    3. Tennessee Medicare Supplements – they ask tobacco questions in the health questions. If you are in your Open Enrollment or Guaranteed Issue Time Period that means you will get non-tobacco rates even if you are a tobacco user.
    4. Many states have laws like the ones listed above. This is why you should use a trusted Medicare Supplement Advisor instead of the local “Jack of all Trades”.

Medicare Supplement Plans are wise investments for ensuring your healthcare future. As we all know, health care laws are constantly changing. If you pass up choosing a Medigap policy while you can, there may not be an opportunity to get a policy later. I’m not saying that these policies will be going away or that you have to buy today, but it is a wise decision to choose a plan that will cover your medical needs.

Supplemental Health Insurance Plans

If you had to put Medicare Supplemental Coverage into a category of insurance, you would say it was one of many supplemental insurance plans. However, it is one of two types of supplemental medicare plans:

  1. Medigap Policies: for those wanting to compare Medicare supplement plans or a Medigap policy, Medicare Insurance Finders is the top website in the market. You can compare medigap plans and search for a Plan F Medicare Supplement if you need coverage that will take care of almost every medical bill.
    1. Compare Medigap policies from the convenience of your home or office.
    2. If you are looking for Medicare, Medigap plans, a Medicare Advantage Plan or any other type of Insurance dealing with Medicare, come to your “Medicare Plan Finder” — also known as Medicare Insurance Finders.
  2. Medicare Advantage Plans: these plans are not Medicare Supplements and have different limitations than Medigap insurance plans.
    1. The Difference:  A Medigap Insurance Plan Supplements Medicare. A Medicare Advantage Plan takes the place of Medicare. It does not cancel your Medicare, but does act in its place.
    2. Medicare Supplement Plan F and Medicare Supplement Plan G are very different than a Medicare Advantage Plan. Again, Medigap policies fill the gap of Medicare while the Medicare Advantage takes its place — meaning providers, insurance protection, and in many other ways
    3. Do your due diligence before purchasing a Medicare Advantage Plan.

Household Discounts Medicare Supplement Policies

Some carriers offer discounts with a Medicare Supplemental Plan when a husband and wife apply together. Medicare Supplemental policy (single applicant) is not allowed to receive the 7% discount that many carriers offer today. Medigap plans began providing this discount around 2008, but there are still lots of Medicare Supplement plans that do not offer this benefit.

Last but not least — I know you probably picked this up earlier in the article — a Medicare Supplement insurance plan and a Medigap policy are the same thing.  Their names are interchangeable as seen in the Choosing a Medigap Policy booklet.

Thank you for visiting Medicare Insurance Finders and we look forward to being your trusted Medicare Supplement Advisor. If you enjoyed this article, please like us on Facebook (MWG Senior Services).

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