When going onto Medicare, many beneficiaries face high liabilities for their medical expenses and prescription drug costs. Original Medicare holds their beneficiaries liable for 20% of their expenses with no cap. Fortunately, enrolling in a Medicare Supplement or Medigap policy will cover those expenses that are left over by original Medicare.
Original Medicare remains the primary insurance to the beneficiary where the Supplement plan would be secondary. With a Supplement, the beneficiary is free to go to any doctor and any hospital with no need for a referral and they are not restricted to staying within a network.
Supplement plans are provided by private insurance companies. Every Supplement plan follows a standardized plan of coverage that follows Original Medicare’s guidelines, but the cost of the monthly premium varies with every supplement carrier. For an additional premium, these plans cover expenses such as the coinsurances and deductibles the beneficiary would be held liable for. If faced with a particularly bad health year, the beneficiary could face tens of thousands of dollars in medical expenses without this coverage. With a Supplement, the insurance company will get your Part B claim information directly from Medicare, and then directly pay the doctor. Some companies will also do this for Part A claims.
Different Supplement plans offer different options according to what the beneficiary’s needs are. Plan F, for example, is considered the highest costing Supplement plan, but enrolling in this plan would guarantee absolutely no deductibles and no copays. Supplement plans are also suitable for those who live in more than one state throughout the year. Unlike Advantage plans, which usually operate within a certain region, a Supplement provides coverage in all fifty states, and even extends outside of the US.
If you have questions or are confused about what you will be liable for, book a meeting with an agent. The goal is to lower your potential cost as low as possible while still receiving great medical care when you need it and give you peace of mind.