How Much Are Medicare Supplement Plans?
What was the cost of the last medical bill you received? If you’re a Medicare beneficiary, you probably didn’t expect to have to pay anything extra after seeing the doctor or visiting the hospital.
So, finding that bill for hundreds of dollars in the mail comes as a nasty surprise.
How are you going to pay for it on a fixed income? You’ll have to dip into your retirement savings to cover the costs. How frustrating.
A Medigap plan might have taken care of that payment for you. How much are Medicare supplement plans, and are they worth taking? This post explores this issue.
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What Is Medigap?
Medigap supplemental insurance is a separate insurance policy available to you.
They come in ten different plans offering different levels of coverage to assist with paying the costs of inpatient and outpatient care that Original Medicare Parts A & B don’t cover.
With a Medigap plan, you can get complete or partial coverage of the 20% of medical expenses Medicare doesn’t pay.
It helps cover out-of-pocket costs, including Part A and Part B deductibles, coinsurance for care at skilled nursing facilities, hospice care, and much more.
Medicare Supplement Benefits and Coverage
You’ll pay a monthly premium on the plan you choose, with the insurer covering the additional medical expenses you incur that Original Medicare doesn’t.
While the level of coverage differs between plans, all of them cover some portion of the following.
- Part B coinsurance.
- Blood (the first three pints).
- Part A hospice care.
- Part A hospital costs and coinsurance for an extra 365 days after exhausting your Original Medicare benefits.
As you can see in the Medigap plans chart above, there are 10 different plans to choose from.
Depending on the plan, you can also receive coverage for the Part A & B deductibles, excess charges for Part B, and 80% coverage for medical expenses incurred in foreign travel medical emergency treatments.
Only Medigap Plans K & L have limits on out-of-pocket fees at $6,940 & $3,470, respectively. The rest offer unlimited coverage.
Plans F & G will be the most comprehensive options for 2024, covering almost all your additional out-of-pocket expenses.
However, Plan F is only available to people who are eligible for Medicare before January 1, 2020. The only difference between the two plans is that Medicare Plan G doesn’t cover the Part B deductible.
Plans F & G are available in high-deductible versions. With these options, you get a lower monthly premium, but you’ll have a higher Part A deductible at $2,700 for 2023.
Plan K is the most affordable option, but you don’t get the same coverage as Plans F & G.
How Much Are Medicare Supplement Plans? – Medigap Premium Comparison
So, how much do you pay for Medigap supplemental insurance plans? Let’s look at the nationwide averages on each plan for a 65-year-old male nonsmoker in Florida.
|Medigap Plan Type||Medigap Cost Range (monthly)|
|Medicare Supplement Plan A||$181 to $380|
|Medicare Supplement Plan B||$238 to $329|
|Medicare Supplement Plan C||$288 to $364|
|Medicare Supplement Plan D||$290 to $334|
|Medicare Supplement Plan F||$278 to $495|
|Medicare Supplement High-Deductible Plan F||$70 to $156|
|Medicare Supplement Plan G||$241 to $413|
|Medicare Supplement High-Deductible Plan G||$70 to $148|
|Medicare Supplement Plan K||$82 to $189|
|Medicare Supplement Plan L||$172 to $279|
|Medicare Supplement Plan M||$268 to $314|
|Medicare Supplement Plan N||$196 to $320|
Factors Influencing Medigap Premium Rates
Medigap policies are available for private insurance companies such as Mutual of Omaha in all states throughout America.
When you sign up for a plan, the insurer assesses where you live, age, gender, and smoking status to calculate your premium rate. For instance, men generally plan more premiums than women, and smokers pay more than nonsmokers.
Medigap plan premiums usually increase in cost as you age, and a 75-year-old will pay more in premiums than a 65-year-old. Since private insurance companies deal in issuing Medigap plans, they charge different rates.
The Federal government regulates and standardizes the benefits and coverage of Medigap plans.
So, you’ll get the same benefits and coverage with a company like Aetna as with Humana. However, insurers can set their policy premiums as they see fit.
What you pay in premiums with one insurer might be lower or higher with another.
The premium costs vary by state, meaning a plan might cost more or less depending on where you live. Insurers could be the most expensive option in one state and the cheapest in another.
That’s why it pays to have a broker like us sourcing you the best rate in your state.
How Do You Enroll in Medigap Plans?
If a Medigap plan sounds like the policy you need to reduce your medical expenses, you can enroll with a private medical insurer on the day of your 65th birthday.
There’s an “open enrollment” period for six months after you turn 65, and it’s best to enroll in Medigap during this period.
During open enrollment, you have guaranteed issuance rights available to you. This means the insurer must accept you into their Medigap scheme, even if you have pre-existing health conditions.
If you wait to enroll after the open enrollment period ends, the insurer requires underwriting to accept you into the scheme.
Underwriting involves the insurer assessing your current health status to assess the risk you resent to them.
Suppose the underwriting reveals you have a pre-existing health condition. In that case, they can offer you a plan with a higher-than-average premium or reject your application and deny you Medigap.
If you have questions on enrollment in Medigap, the average premium costs in your area, and the best insurer to go with for your plan, speak to us.
We’ll help you choose the best provider in your state with the lowest monthly premiums and the best coverage and benefits.
Frequently Asked Questions
How much do Medicare Supplement Plans cost?
The cost of Medicare Supplement Plans varies depending on various factors such as your location, the insurance company you choose, your age, and the specific plan you select.
What is the average cost of Medicare Supplement Plan G?
The average cost of Medicare Supplement Plan G can vary, but on average, it ranges between $100 to $200 per month. However, it’s important to note that the cost may be higher or lower depending on the factors mentioned earlier.
Are Medicare Supplement Plans worth it?
Medicare Supplement Plans can be worth it for individuals who want to limit their out-of-pocket expenses for healthcare services. These plans can help cover costs like deductibles, copayments, and coinsurance that Original Medicare doesn’t fully cover. It’s essential to assess your healthcare needs and budget to determine if a Medicare Supplement Plan is a good fit for you.
Can I change Medicare Supplement Plans?
Yes, you can change Medicare Supplement Plans. However, the process and availability may vary depending on your location and the insurance company’s policies.
What is the best Medicare Supplement Plan for Seniors?
The best Medicare Supplement Plan for seniors depends on individual needs and preferences. Plans like Plan F, Plan G, and Plan N are popular choices due to their comprehensive coverage.
Do Medicare Supplement Plans cover prescription drugs?
No, Medicare Supplement Plans do not cover prescription drugs. To get prescription drug coverage, you need to enroll in a separate Medicare Part D plan.
When is the best time to enroll in a Medicare Supplement Plan?
The best time to enroll in a Medicare Supplement Plan is during your Medigap Open Enrollment Period. This period starts on the first day of the month you turn 65 and are enrolled in Medicare Part B.
Do Medicare Supplement Plans cover vision and dental expenses?
Generally, Medicare Supplement Plans do not cover routine vision and dental expenses such as eye exams, glasses, or dental cleanings. However, some plans may offer additional benefits or discounts for these services.
Can I have a Medicare Supplement Plan with a Medicare Advantage Plan?
No, it is not possible to have both a Medicare Supplement Plan and a Medicare Advantage Plan at the same time. These two types of plans cannot be combined.
Can I be denied a Medicare Supplement Plan?
In most cases, insurance companies cannot deny you a Medicare Supplement Plan during your Medigap Open Enrollment Period. However, outside of this period, they can consider your health status and medical history when determining your eligibility for coverage.
Get Started Now
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Updated December 4th, 2022