Medicare Supplement plans 2022

In this article:

• What are Medicare supplement plans?
• Compare Medicare Supplement plans
• Who regulates Medicare supplement plans?
• What are Medicare Supplement plans?
• Compare Medicare Supplement plans
• Comparing cost-sharing across Medigap plans
• Medicare Supplement plans cost
• Who regulates Medicare supplement plans? 
• How to save money on Medicare costs

In this article

• What are Medicare supplement plans?
• Compare Medicare Supplement plans
• Who regulates Medicare supplement plans?
• What are Medicare Supplement plans?
• Compare Medicare Supplement plans
• Comparing cost-sharing across Medigap plans
• Medicare Supplement plans cost
• Who regulates Medicare supplement plans? 
• How to save money on Medicare costs

It’s no question that Medicare enrollees are increasing. Over 11,000 individuals become eligible for Medicare daily. While having Medicare coverage is a good starting point to meet your healthcare needs, additional costs are associated. These costs come from premiums, copays, deductibles, and coinsurance.

Several options are available to help cover or offset these costs. One of the most popular is Medicare Supplement insurance. We’ll discuss what Medicare Supplement plans are, compare the different plan options, and give examples of what you can expect to pay for Medicare Supplement health insurance.

What are Medicare Supplement plans?

Medicare Supplement plans work as secondary coverage to Original Medicare. These private plans, also known as Medigap, cover many of the out-of-pocket costs that are associated with Medicare Part A and Part B. 

Medicare Part A covers inpatient hospital services and skilled nursing facility care. Medicare Part B covers outpatient medical services, like doctor office visits, outpatient surgeries, and procedures.

Medigap plans can assist with expenses such as:

• Medicare Part A Deductible
• Medicare Part A Copays
• Medicare Part A Coinsurance
• Medicare Part B Deductible
• Medicare Part B Coinsurance
• Medicare Part B Excess Charges

Since Medicare Supplement health insurance plans are secondary to Medicare, you retain all your rights under Original Medicare. This is part of the reason these plans are so popular among Medicare beneficiaries. One advantage is that Medigap plans do not have networks.

You can see any healthcare provider nationwide that accepts Medicare. Referrals are not required to see specialists and special authorizations are not necessary. The Medigap must pay as long as Medicare approves the procedure or treatment.

There are also fewer restrictions on when you can enroll in a Medicare Supplement plan. In most states, you can enroll anytime as long as you can medically qualify but you may be subject to additional enrollment criteria. 

Initial Enrollment Period

When you are first eligible for Medicare, you start your Open Enrollment Period for Medigap plans. The Open Enrollment is a six-month period that begins the month you are 65 or older and enrolled in Medicare Part B. You can enroll in any Medicare Supplement plan available without restrictions or health questions during this period.

Guaranteed Issue

Outside of your Open Enrollment Period, you must pass medical underwriting unless you are in a guarantee issue situation. 

Seven situations provide you with this special election:

1. Trial Right 1: You joined a Medicare Advantage Plan at age 65 and want to switch from Medicare Advantage to a Medicare Supplement plan during the first year.
2. Trial Right 2: You leave a Medicare Supplement policy to join a Medicare Advantage plan for the first time, have been in the plan less than a year, and wish to return to Medigap.
3. You move out of your Medicare Advantage plan‘s service area, or Your Medicare Advantage plan is dropping coverage in your area.
4. You move out of your Medicare Supplement SELECT plan’s service area.
5. You involuntarily lose your group employer insurance.
6. The Medigap insurance company did not follow the rules or misled you.
7. Your Medicare Supplement insurance company goes bankrupt.

In these situations, you can apply for specific plans without medical underwriting. If you were eligible for Medicare before January 1, 2020, you could enroll in Plans A, B, C, F, K, or L. Different Medigap plans are available for new enrollees each year.

The only exception is Trial Right 1. In this case, you can enroll in any plan available to you. In each of these guaranteed issue situations, except the trial rights, you will have 63 days to enroll in a plan.

Compare Medicare Supplement plans

It’s important to understand that all Medicare Supplement plans will offer the same plan coverage. For example, a Plan F with Mutual of Omaha must provide the same coverage as Plan F from UnitedHealthcare. This is called standardization. All companies must follow the standardization rules except for three states, Wisconsin, Massachusetts, and Minnesota.

There are ten Standardized Plan Options. Although Plans F and G have high deductible options.

Comparing cost-sharing across Medigap plans
Medicare Supplement Benefits	A	B	C	D	F	G	K	L	M	N
Part A coinsurance and hospital costs	X	X	X	X	X	X	X	X	X	X
Part B coinsurance or copayment	X	X	X	X	X	X	50%	75%	X	X
First 3 pints of blood	X	X	X	X	X	X	50%	75%	X	X
Part A hospice care coinsurance or copayment	X	X	X	X	X	X	50%	75%	X	X
Coinsurance for skilled nursing facility			X	X	X	X	50%	75%	X	X
Medicare Part A deductible		X	X	X	X	X	50%	75%	X	X
Medicare Part B deductible			X		X
Medicare Part B excess charges					X	X
Foreign travel emergency			80%	80%	80%	80%			80%	80%
Out-of-pocket limit							Varies by year	Varies by year

• Plan A covers basic benefits, also known as the core benefits. Most notable are the 20% coinsurance and the hospital costs once the Part A deductible is met.
• Plan B is identical to A, except it will pay the Part A deductible.
• Plan C picks up all your Original Medicare costs except for Part B excess charges. This plan is only available for beneficiaries that were eligible for Medicare before January 1, 2020.
• Plan D‘s coverage is the same as Plan C‘s, except there is no coverage for the Medicare Part B deductible.
• Plan F is the most popular plan among Medicare beneficiaries. It covers practically all your Medicare cost-share. There’s a high-deductible Plan F which lowers premiums but requires more out-of-pocket spending before the insurance begins to pay for coverage. Once you meet the plan deductible, the plan covers all medical costs for the remainder of the year. Both the standard and high deductible Part F plans are only available for beneficiaries that were eligible for Medicare before January 1, 2020.
• Plan G is the most comprehensive plan for new Medicare beneficiaries. It has the same coverage as Plan F but exudes the Part B deductible. There is also a high-deductible Plan G. Once you meet the plan deductible, the plan picks up all costs for the remainder of the year. If you were eligible for Medicare after January 1st, 2020, then Plan G is the plan that will give you the most benefits. 
• Plan K essentially covers 50% of your Medicare costs for most services.
• Plan L covers 75% of your cost for most services.
• Plan N is similar to Plan G. The differences are that Plan G doesn’t cover the Part B excess charges. There are small copays on this plan. Up to $20 for a doctor’s office visit and up to $50 for an emergency room visit.
• Plan M is similar to Plan D. Plan M covers 50% of the Part A deductible.

Once you understand and pick the plan letter, it comes down to the price and the company you choose. The best plan will vary based on your needs and budget. What’s best for you may not be the best for someone else.

Plan F has the most complete coverage but the highest price. Plan G has almost the same coverage as plan F but at a lower cost, and Plan N provides coverage similar to Plan G but at a significantly better price. These three plans account for over 75% of all Medicare Supplement enrollments.

Medicare Supplement plans cost

Medicare Supplement insurance plans offer the most comprehensive coverage to assist with medical costs under Medicare. Since the plans are the same regardless of the insurance company you choose, the monthly premium is an important consideration.

Medigap premiums can vary based on many factors. Among the most significant reasons the price can vary are:

• Age
• Gender
• Health
• When you apply
• Whether you use tobacco or not

Other factors, including your health and height and weight ratio, could also affect your monthly cost. Since these plans are secondary coverage, you’re not guaranteed acceptance.

Plan F, Plan G, and Plan N are the top three Medigap policies nationwide, each with distinct pricing ranges.

Who regulates Medicare supplement plans? 

Medigap policies are standardized and regulated by the Centers for Medicare & Medicaid Services (CMS). While the CMS dictates the general rules and standards, the state’s department of insurance (DOI) handles the enforcement and disciplinary actions. The state DOI also approves plan increases and new insurance companies offering plans in their individual state.

How to save money on Medicare costs

When it comes to lowering the medical costs associated with Medicare, Medigap plans can help. They can offset your Medicare costs regarding deductibles, coinsurance, copayments, and excess charges.

However, these plans may not work for everyone as they can be expensive. There is a myriad of other programs that can help with Medicare costs. Next, we’ll review some of these options.

1. Low-Income Subsidy

The low-income subsidy program is a federal program called Extra Help. Extra Help pays for costs associated with your Medicare Part D prescription drug coverage. There are several levels of Extra Help available.

The Extra Help program can lower drug premium costs, deductibles, copays, or coinsurance when picking up your prescriptions from the pharmacy. Your medication must be on your drug plan‘s formulary for the Extra Help program to help with costs.

2. Medicare Savings Program

A Medicare Savings Program is a state-run program that can assist with costs related to your Original Medicare premiums, and sometimes deductibles, copays, and coinsurance as well. There are several Medicare Savings Programs available

Eligibility for both the LIS and MSP is based on the income and assets of a Medicare beneficiary. The benefits levels can vary depending on the state program and the income level.

3. Senior Savings Model

This is a new program that will assist Medicare beneficiaries with insulin-dependent diabetes. It limits the cost of participating insulins on select plans.

4. SingleCare

SingleCare offers free discount cards for prescriptions. Simply go to the website and register. Once you register, you can start to save money on your prescriptions. Enrollment is instant; you can email, download, or print your discount Rx card.