Also known as a “Med Supp” or a “Medigap Plan,” a Medicare Supplement Plan is an offering from a private insurance company that will help cover the 20% “gap” of costs that Original Medicare does not cover. Specifically, a Medicare Supplement can help cover
- Medicare Part A and B deductibles;
- copayments and coinsurance;
- Hospice coinsurance / copays; and
- Emergency medical costs during international travel.
Similar to both Original Medicare and Medicare Advantage, a Medicare Supplement isn’t the right choice for everyone, so let’s look at the “pro’s” and “con’s”:
|Helps cover co-payments, co-insurance|
|Although premiums vary between plans, your monthly premium can be |
expensive and is not refundable if you don’t have eligible expenses,
e.g., you pay your premium every month, regardless of whether
you go to the doctor
|Caps your financial responsibility |
at your monthly premium
|You will need to purchase a Medicare Part D plan for |
prescription drug coverage and pay a monthly premium
|Beyond what you pay for your monthly|
premium, your out-of-pocket expenses
may be limited
|If you require dental, vision or hearing, you will need to purchase |
a stand-alone Dental / Vision / Hearing Plan (“DVH Plan”) which
comes with an additional monthly premium
In sum, although a Medicare Supplement / Medigap Plan will help cover the 20% of costs that Medicare does not, and may also cap your financial obligations in the event that you incur significant medical costs, it can come with a higher monthly price tag in the form of a non-refundable premium, and you would still need to pay extra for a Part D plan AND a DVH Plan.
So how do you know if a Medicare Supplement Plan is the right choice for you? Call one of our licensed agents now at 1-877-766-4448 or Click Here to take quick survey for a free quote.