Did You Know That Medicare Supplement Plans & Medigap Plans Are The Same Thing?

Michael T. Braden August 27, 2024 MEDICARE SUPPLEMENTS & MEDIGAP

Did You Know That Medigap plans and Medicare Supplement Plans Are The Same Thing?

MEDICARE SUPPLEMENTS & MEDIGAP PLANS

Why would anyone choose a limited Medicare Advantage plan with local networks and limited choices for Physician's and Healthcare Facilities when you have less exposure and better coverage with a Medicare Supplement Plan G? And, not just that but once you are approved and enroll in a Medicare Supplement, your pla, can never cancel your policy, as long as your premiums are paid. That is true peace of mind for you and your family.

Medicare Supplement Plans became available in 1990, and they are standardized and must follow Medicare guidelines.  Medigap Plans are lettered, and although the coverage is the same across insurance companies, prices will vary.  These are Plans A, B, C, D, F, G, K, L, M, and N. The most common plans sold are Plans C, F, G, and N; however, only Plan G and N are available for those new to Medicare after January 1st, 2020.

Medicare Supplement Plan G or Medigap Plan G is the best and the most comprehensive Medicare Supplement available to new Medicare Beneficiaries as of 1/1/2020. 

Plan F was once considered the Best Medigap plan available. It is still popular; however, annual premiums for Plan F are usually $400- $1,200 higher than for Plan G. The only difference between the plans (aside from price) is that Plan F automatically pays your Annual Part B Deductible. Medicare sends you a bill for your Part B Deductible. With Plans F and G, you will never have a bill from Medicare for any Medicare-approved/Medically Necessary procedure, aside from your Annual Part B Deductible, which everyone has to pay, regardless of what Plan they enroll in.  

With a Plan G Medicare Supplement plan, Medicare pays its 80% share, your Plan G policy covers the remaining 20% (your share), and you pay nothing! 

Medicare will pay its share, and your Medicare Plan G Supplement will cover the rest.  Honestly, this is the best deal in Healthcare in the US. The best way to look at this is that your Maximum Out-Of-Pocket Expense is your monthly premium.   The majority of Plan G beneficiaries pay well under $2,000 a year in premiums, and when you realize that the lowest MOOP (Maximum Out-of-Pocket Expense) you can find with a limited no-cost Medicare Advantage plan is $5,700, based on the 2022 nationwide average. Comparison. 

Perhaps the most significant benefit is choice and portability. A Medicare Supplement or Medigap plan allows you to choose ANY Doctor, go to ANY Hospital ANYWHERE in the United States, and you are covered, as long as the Doctor and Hospital both accept Medicare's Assignment/Fee Structure.

Why would anyone choose a limited Medicare Advantage plan with local networks and limited choices for physicians and Healthcare Facilities when you have less exposure and better coverage with a Medicare Supplement Plan G? And, not just that, but once you are approved and enroll in a Medicare Supplement, your plan can never cancel your policy, as long as your premiums are paid. That is true peace of mind for you and your family.

 You must continue to pay your Medicare Part B premium even if you are enrolled in a Medigap Plan.  

 Items not covered by Original Medicare include:  

• Routine Dental, Vision, and Hearing exams

• Hearing Aids

• Eyeglasses or Contact Lenses

• Long Term Care or Custodial Care

• Retail Prescription Drugs

  
  

Medicare does cover Cataract Surgery, Macular Degeneration, and a limited amount of Chiropractic and Acupuncture therapies. For the sake of Medicare, it is easiest to remember that Medicare covers services at an Ophthalmologist's office but not at an Optometrist's office.

Did you know that Medicare standardizes all Medicare Supplement Plans (also known as Medigap Plans)? This means that every Medicare Supplement Plan available in the US is the same from coast to coast. What differs is each insurance company's premium rates in a specific market (State). You can rest assured that a Medicare Supplement Plan G from ACE Healthcare offers the same benefits as the plan from Blue Cross. 

Many companies that offer Medicare Supplements offer additional services and benefits, such as health club memberships and discounts on dental and vision services. If these are important to you, please ask your Broker.

Medicare Supplement Plans F, G, and N will also pay the $1,600.00 Medicare Part A Deductible for you, and Plans F and G will also cover any Excess Medicare Part B charges for you.

Lastly, many Medicare Supplement insurers charge a $20- $25 Application/Policy Fee when applying for one of their plans.  Although this is quite common, it is not necessary.  Many other reputable companies do not charge these unnecessary fees.