Medicare Insurance

Insuring Your Life & Protecting Your Income

Medicare supplemental insurance plans are known as “Medigap plans,” and they help Medicare recipients with some of the costs that Medicare does not pay. Some of these costs are for your deductibles, coinsurance and copayments. You will purchase the supplemental plan that augments your health insurance coverage from a private insurance company.

Medicare supplemental insurance plans are for Medicare recipients with Part A and Part B coverage.

How It Works…

After an insurance company agrees to sell you a Medigap policy, you will be charged a monthly premium. This will be in addition to the premium that you pay for your Part B coverage. When you visit your doctor’s office or have other medical services, Medicare will pay a portion of the costs. In most cases, this is 80 percent. Then, the provider bills your supplemental insurance company for the rest. Depending upon your plan, you may have to pay a portion of this cost.

Different Types of Coverage in Existence.

You have the choice of Medigap plans A, B, C, D, F, G, K, L, M and N. All of these plans will pay your Part B coinsurance and hospital costs for a second year after your Medicare policy’s obligation to pay is over. Some plans will pay as much as 80 percent of your medical costs for the medical care you receive outside of the country, but Plans A, B, K and L do not pay any of these costs. Plans A, B, C, D, F, G, M and N will pay all of your out-of-pocket costs after you have paid your Part B deductible and met your out-of-pocket yearly limit.

The only plan that doesn’t pay any portion of your Part A deductible is “Medigap Plan A.” The only plans to pay your Part B deductible would be Plans F and G. Plan A and Plan B will not pay your skilled nursing facility care coinsurance, but they will pay your hospice care coinsurance or copayments.

Without a supplemental insurance plan for your Medicare health insurance coverage, you would be responsible for paying all of the costs that Medicare doesn’t pay. This would be approximately 20 percent, and it can be a large sum of money.