When people start looking into Medicare, they often quickly learn that Original Medicare doesn’t cover every healthcare cost. That’s where supplement health plans, specifically Medicare Supplement Insurance (Medigap), can come in.
Private insurance companies sell Medicare Supplement plans, which can help pay some out-of-pocket costs under Original Medicare, including certain deductibles, copayments, and coinsurance.
How Do Medicare Supplement Plans Work?
Medigap works alongside Original Medicare. You generally need both Medicare Part A and Part B to purchase a Medicare Supplement plan. When you receive covered care, Medicare pays its share first, and your Medigap policy can help with certain remaining costs.
One thing that makes Medicare Supplements a little easier to compare is that they’re standardized. Plans are identified by letters, such as Plan G or Plan N, and plans with the same letter generally provide the same basic benefits regardless of the insurance company selling them. The price can still vary quite a bit between companies, though.
And that’s one reason it pays to shop around instead of automatically choosing the first plan you see.
When Should You Get a Supplement Health Plan?
Timing is pretty important when you’re shopping for Medigap.
Your Medigap Open Enrollment Period lasts for six months and starts when you’re 65 or older and enrolled in Medicare Part B. During this period, you generally have more choices, and an insurance company can’t deny you coverage because of a pre-existing health condition.
This enrollment period is also different from Medicare’s yearly Open Enrollment Period. Your Medigap Open Enrollment Period is a one-time period, so it’s worth paying attention to when yours starts.
Comparing Medicare Supplement Plans
There isn’t one Medicare Supplement plan that’s automatically the best choice for everyone. Your budget, healthcare needs, and where you live can all play a role.
When comparing plans, look at the monthly premium, the benefits offered, and how different insurance companies price the same lettered plan. Medicare notes that premiums can vary based on the company, location, and other factors.
Insurance companies can also offer different Medigap products and pricing, which is why comparing carriers can be helpful. For agents, Empower Brokerage provides access to Medicare Supplement products and resources designed to help agents compare companies and plans for their clients.
Medicare can feel complicated at first, but understanding how supplement health plans work is a good place to start. Taking some time to compare your options can help you find coverage that fits your needs and your budget.
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