A Medicare Supplement, or Medigap policy, is an insurance policy sold by private insurance companies that can help you pay out-of-pocket costs that Medicare Parts A and B do not cover. Medicare Supplements are identified by the letters A through N, and are standardized by federal regulation across different insurance companies. This means that a Medicare Supplement F Plan offered by Insurance Company #1 will have the same coverage as the Medicare Supplement F Plan offered by Insurance Company #2. However, the government does not regulate the price of Medicare Supplement plans, so Insurance Company #1 may charge a higher premium for Plan F than Insurance Company #2, even though the plans are otherwise the same.
What Do Medicare Supplements Cover?
Medicare Supplements help pay expenses beyond what original Medicare covers. This includes copayments, coinsurance, and deductibles. Medicare Supplement Plans can also cap the amount you are expected to pay out of pocket. Why does this matter? Because Original Medicare (Parts A and B) does not put a limit on out-of-pocket expenses, a hospital stay could leave you holding a six-digit bill even after Medicare pays its share. With a Medicare Supplement Plan, your out-of-pocket costs are very limited, if you have any at all.
However, Medicare Supplements do not cover additional services such as vision, dental, or prescriptions. These services may be covered by Medicare Advantage Plans (HMO or PPO), which are insurance plans offered by private insurance companies in place of original Medicare.
Who Should Consider a Medicare Supplement Plan?
Everyone should consider a supplemental plan for Medicare, whether it be a Medigap policy, Medicare Advantage plan, or prescription drug plan. However, as with any major insurance decision, it’s important to discuss your options with an expert who can help you find the best Medicare plan for your unique situation.
Sara McKinney
 saractag@gmail.com
Sara is a recent graduate of Kalamazoo College and a new addition to the Cowen Team. Her responsibilities include IT support, event planning, and general administrative assistance.
