Below are some of our best tips for choosing Medicare supplemental insurance.
Educate Yourself on Medigap
A Medigap policy is an insurance policy that helps you fill in the gaps in Original Medicare. For example, Original Medicare does not cover vision, dental or hearing aids. Some Medigap policies do offer this coverage, along with emergency foreign travel expenses.
There is also no cap on out-of-pocket costs in Original Medicare, which means you could be paying thousands in copayments, coinsurance and deductibles. A Medigap policy will pick up some of these costs, reducing your out-of-pocket payments.
Decide What Coverage You Need
Medigap policies are standardized and typically named by letters, Plans A-N. Compare the benefits of each plan so that you can choose one that will cover your needs. Keep in mind that rates vary widely and can cost anywhere between $50 and $400 extra each month.
While you should discuss your individual needs with your financial advisor, here are some key takeaways:
- Plan G is the best overall plan that provides the most coverage for Medicare members. It covers everything but the Medicare Part B deductible. Plan G is the most popular Medicare supplement for new enrollees. However, rates are expensive.
- If you qualified for Medicare before January 1, 2020, Plan F is the best Medigap plan. Plans cover all of the items that you would normally pay for out of pocket, including coinsurance and deductibles. Plan F is also comprehensive, but it is expensive and not available to new Medicare members.
- Plan K only provides 50% coverage for Medicare Part B coinsurance, blood, Part A hospice, Part A deductible and skilled nursing. But, it’s much cheaper than other plans and still offers additional coverage.
- Plan N is a good supplemental policy for those who want something as good as Plan G but without the cost. The difference between Plan N and Plan G is that Plan N doesn't have coverage for Medicare Part B excess charges.
Gather Your Quotes
When you know what coverage you’re looking for, you can start gathering Medicare quotes. Working with a financial planner is helpful, as they can gather quotes from the top Medigap providers and help you determine the best plan for your needs.
Also, Medigap policies only cover one person, so if you and your spouse both want coverage, you’ll need to set up two separate policies. These policies are renewable, even if you have health problems.
To discuss your needs for Medicare supplemental insurance, contact Leonard Financial Solutions. We’ll obtain several quotes and help you pick the best Medigap plan for your needs and budget.