It’s open enrollment time for Medicare and Medicare Supplement insurance plans (Medigap) (Oct. 15-Dec. 7). After a brief glance at this menagerie, you may be seeing stars (or letters!). Here’s a quick cheat sheet to get you started.
Medicare supplemental insurance (Medigap) policies are sold to cover some or all of the expenses that Original Medicare doesn’t cover (the “gap”).
There are 8 standardized types of Medigap policies across the country (plus 2 more if your elder qualified for Medicare prior to Jan. 1, 2020). Each plan is identified by a letter (Plan A to Plan N). If a plan is offered in your elder’s state, it will be the same plan (no matter which insurance company they choose) across the country. There are some exceptions in MA, MN and WI, where policies are offered differently. {Why are there always exceptions???} If your elder lives in one of those states, go to Medicare.gov for more details.
Medigap policies differ in the amounts of coverage they provide in these areas:
- Medicare Part A/Part B deductibles and coinsurance
- Skilled nursing facility coverage,
- Hospice out-of-pocket expenses (coinsurance)
- Excess medical charges (above Medicare approved amount),
- Foreign emergency care.
For quick reference:
- Plans C and F are no longer available to folks who qualified for Medicare after Jan. 1, 2020. If your elder was enrolled in one of those plans already, they can still keep it.
- Plan N is comparable to prior Plan F but with an office visit and ER visit copay, which lowers the premium. (I think this deserves a second look, from a value perspective.)
- Plan K is a cost-sharing plan with most costs being shared 50/50 with the plan and the patient. Plan L is similar but covers 75% plan/25% patient. Both have out-of-pocket limits on how much a patient will have to pay annually.
- Plan A is a basic plan that covers most of Medicare Part A/B coinsurance, but not the deductibles, skilled nursing facility coinsurance or foreign coverage.
- Plan G is offered in some states as a high-deductible plan.
- Plans B, D, G and M offer different combinations of the above.
Some basic info:
- Original Medicare does not cover dental, vision or hearing expenses. Therefore, Medigap policies do not either. Medicare Advantage plans do have coverage in these areas.
- Original Medicare does not cover prescription drugs; therefore, neither do the Medigap plans. Your elder must purchase prescription drug coverage separately (called Medicare Part D), with the same enrollment period of Oct. 15-Dec. 7.
The best place to start, in my opinion, is on Medicare.gov. Click on Find Plans and enter your senior’s zip code. Their options will be shown (by Plan letter) from the different insurance companies that are offering plans in that area.
If you search for “compare Medigap policies” on Medicare.gov, there is a chart comparing the plans and what they cover.
AARP also has a good article on Medigap plans. Here’s the link: https://www.aarp.org/medicare/faq/what-is-medigap-insurance/
Each state has a State Health Insurance Assistance Program (SHIP) that offers unbiased, individualized help with finding and matching the best coverage for your elder, their care needs and their budget. Go to www.SHIPHELP.org to find the local program nearest your loved ones.
This is not a comprehensive guide, nor should you consider this gospel on the subject. It’s just a summary of what I’ve found to be helpful in evaluating what the options are in Medigap coverage. Now, start with a large latte and go from there.
A personal note: I’m not a fan of Medicare Advantage plans. They offer lower/no premiums with HMO-type coverage but I’ve often found the choices in medical providers are very limited. On a positive note, Medicare Advantage plans cover prescription drugs, as well as some dental, vision and hearing. Some even help with transportation. Because these are plans entirely managed by private insurers rather than Medicare, they can cover more/less than Original Medicare in specific areas. They should get a good deal of investigation before you make that choice. Just my two cents.
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