Original Medicare provides important healthcare coverage, but it doesn’t cover every healthcare expense. Deductibles, coinsurance, copayments, and other costs can still leave Medicare beneficiaries with out-of-pocket expenses.
A Medicare Supplement plan, also known as Medigap, can help fill some of these gaps. Since different Medigap plans provide different levels of coverage, it’s important to understand your options before choosing a policy.
If you’re considering Medicare Supplement insurance, here are five important questions to ask.
1. What Costs Does the Plan Help Cover?
The first question to ask is how a Medicare Supplement plan can help with the costs left behind by Original Medicare.
Depending on the plan, Medigap coverage may help pay for expenses such as:
- Medicare Part A coinsurance and hospital costs
- Medicare Part B coinsurance or copayments
- The first three pints of blood used for a medical procedure
- Part A hospice care coinsurance or copayments
- Skilled nursing facility coinsurance
- The Medicare Part A deductible
- Certain Medicare Part B-related costs
- Foreign travel emergency expenses
The amount covered depends on the specific Medigap plan you select. Comparing benefits can help you determine which level of coverage makes sense for your healthcare and financial needs.
2. Which Medicare Supplement Plan Is Right for Me?
Medigap policies are standardized and identified by letters, including plans from A through N. Each plan offers a different combination of benefits.
For example, some plans provide more extensive coverage for certain coinsurance and deductible costs, while Plans K and L include out-of-pocket limit protection.
Because each plan has different benefits, don’t assume that the plan with the most coverage is automatically the right choice for you. Consider your healthcare needs, budget, and the types of expenses you are most concerned about.
3. How Much of My Healthcare Costs Could Remain?
Understanding what a plan doesn’t cover can be just as important as understanding what it does cover.
Medicare Supplement insurance is designed to work with Original Medicare and can help pay certain costs after Medicare pays its share. However, the specific amount you may have to pay depends on the Medigap plan you choose and the healthcare services you receive.
It’s also important to understand that a Medigap policy generally does not begin paying until applicable Medicare deductibles and requirements have been met.
Ask about the potential out-of-pocket costs before selecting a plan so you have a clearer picture of your overall healthcare expenses.
4. Does the Plan Provide Benefits That Match My Lifestyle?
Your healthcare needs aren’t the only factor worth considering. Think about how your lifestyle may affect the type of coverage you need.
For example, if you frequently travel outside the United States, certain Medicare Supplement plans offer foreign travel emergency coverage.
Some Medigap plans also provide protection against certain out-of-pocket expenses. Plans K and L, for instance, offer out-of-pocket limit protection, with limits that can change annually.
Looking at these additional benefits can help you choose coverage that fits both your healthcare needs and lifestyle.
5. Do I Need a Separate Medigap Policy for My Spouse?
If you’re married, it’s important to remember that Medicare Supplement policies provide coverage for one person.
If both you and your spouse want Medigap coverage, each person will need to purchase a separate Medicare Supplement policy.
This is an important consideration when planning your overall healthcare budget. Comparing coverage needs for both individuals can help you determine which plans may be appropriate for each person.
Comparing Medicare Supplement Plans Before You Choose
There isn’t one Medicare Supplement plan that is ideal for everyone. The right choice depends on the level of coverage you want, the costs you’re comfortable with, and the healthcare benefits that matter most to you.
Before selecting a policy, take time to compare:
- Coverage for Part A and Part B costs
- Deductible coverage
- Coinsurance and copayment benefits
- Skilled nursing facility coverage
- Hospice care coverage
- Foreign travel emergency benefits
- Out-of-pocket protections
- Your overall healthcare budget
Understanding these differences can make the process of choosing a Medicare Supplement plan much easier.
Get Help Choosing a Medicare Supplement Plan
Medicare Supplement insurance can be complicated, especially when you’re comparing multiple plans and trying to understand how each one handles out-of-pocket costs.
For more than 20 years, Hitcho Insurance Agency has helped individuals and families explore their insurance options and find coverage that aligns with their goals and needs.
Our agents offer free consultations to help you better understand Medicare Supplement options and determine what may be appropriate for your situation.
