Michael M Insurance Blog

What Are Medicare Supplement Plans(Medigap)?

Apr 15, 2021 | 0 comments

Medicare Supplements Plans Fix the “Gap” in Coverage.

What Is The Gap In Coverage?

Medicare Part A- Inpatient Hospital Stay-

Days 1-60 $1632 Deductible

Days 61-90 $408 per Day

Days 91-150 $816 Per Day

Medicare Part B- Medical Coverage-

Annual Deductible- $240.00

20% Co-Insurance

Your Medicare Supplement(Medigap) Plan Will Cover Most or All Of Your “Gaps” In coverage.

Medicare Supplement plans have been around since 1980. Since Original Medicare does not cover 100% of the Hospital (Part A) and Medical (Part B) costs, Medicare Supplement/Medigap plans were devised to help Medicare Beneficiaries cover their cost share or, “Gaps” in the Original Medicare Health Insurance coverage. Since Original Medicare is still the Primary Payer and the Medigap plan is Secondary there are no Doctor or Hospital networks. The only requirement is that the Doctor or Hospital accept Medicare making the plans portable and able to be used in any state. As if things weren’t confusing enough with A,B,C and D Medicare, Medicare Supplement/Medigap Plans are letter designated(Plans A-F) as well.

Medicare Supplement/Medigap plans have “Standardized Coverage” meaning the coverage between plans is generally the same with differences being the cost of the monthly premium and cost share associated with it. Some plans offer enhanced benefits such as 100 Days in a Skilled Nursing Facility instead of the standard Medicare 20 days. But, Original Medicare does not cover items like Dental, Vision, Hearing Aids and Gym Memberships which means your Medicare Supplement/Medigap doesn’t either.

Prescription Medications

Original Medicare does not cover prescription medications so your Medicare Supplement/Medigap plan won’t either. A Part D Prescription Drug Plan must be added and is available from private insurance companies.

State Rules

There are differences between states as when someone can enroll in a Medigap plan including Medical Questionnaires and pre existing conditions issues. Our discussion pertains to individuals residing in the State of New York where preexisting conditions are limited with no Medical Questionnaire used. 
To better see plan differences I have included a plan chart for your convenience.

 

Medicare Supplement Plans FAQ

 

Since Medicare does not pay 100% of Medical costs(Your cost Share with Part A Hospital is $1600+ and Part B Medical is 20%) your cost share is considered a “Gap” in coverage and “Medigap” plans are designed to cover you in the Gap.

No, Medicare Supplements only help with Medicare Parts A and B cost sharing. A Part D Prescription Drug Plan must be added. Medicare does cover certain injectable medications administered in a hospital and/or facility, which would be covered under Medicare Part B.

No. Medicare Supplements only help pay your cost share for Medicare Parts A and B which do not cover Dental and Vision services.

That all depends upon an individual’s needs. Care should be taken when choosing a plan and all options should be considered.

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