What is Medicare?

Benefit Chart

Supplement Chart

Medicare Information

Supplemental Coverage

What's Next?

Medicare Supplemental Coverage

The nitty-gritty of Medicare Supplemental Coverage (Medigap)

These types of policies are basically broken into ten standardized plans - Plans A through J. Each insurance company that offers these types of insurance policies carries the same benefit, although premiums can vary greatly from company to company and by age group and location. It is absolutely imperative that you do your homework before deciding on a particular carrier, never jump into something because Uncle Joe down the road had a policy with company XYZ. What was good for him may not be good for you. Also, not all insurance companies will offer all plans. Some may only sell Plan A, B, and F, while others may sell only A, C and G - check with the agent or company first. Prescription benefits are not part of any plans except H through J.

Plans A and B - these offer basic coverage and are the least expensive. All insurance companies must offer Plan A which covers your Part A co-insurance amount, the cost of 365 extra days of hospital care during your lifetime after Medicare coverage ends, the Part B co-payments (your 20%) and the first three pints of blood every year. Plan B also covers your Part A deductible ($812 see above). If you continue to work and feel you need supplemental coverage then Plan A should do the trick.

Plans C, D and E - are basically identical in that they all offer Skilled Nursing Coinsurance (stays over 20 days see table above), the Medicare Plan A deductible ($812) as well as Foreign Travel Emergency benefits. Plan C includes the Part B deductible ($100). Plan D includes an at-home recovery benefit and plan E includes preventative care, which incidentally Medicare now pays for so this coverage is actually redundant.

A word on Foreign Travel Emergency benefits. If you travel to Greece and break your leg you are still required to pay for all care out of pocket first. Once back home turn in your bills to your carrier for reimbursement, make sure to keep all receipts. If you never travel outside of the US this benefit is really not necessary unless you prefer to be pro-active and have it just in case one of your kids decides to give you a 2-week cruise to the Bahamas.

Plans F and G - These, again, are almost identical, except that Plan F will cover your Part B deductible ($100) and 100% of excess charges (remember assignment vs. non-assignment?); Plan G will not cover this deductible and only 80% of excess charges. Both plans include the foreign travel benefit as well as the redundant at-home recovery benefit. These types of plans are a good choice if you prefer to see a specialist for certain ailments instead of the family physician, though most specialists will not accept assignment and you will be billed for the difference. If you want to make sure that all contingencies are planned for then Plan F is probably the right choice for you since it will cover all out of pocket expenses, except prescriptions.