Get to know Medigap: Medicare Supplement Plans
Medicare supplement plans, also known as Medigap, are sold by private companies as an addition to Original Medicare (Parts A and B). These plans help pay some or all of the costs that Original Medicare doesn’t cover, like deductibles, copays, and coinsurance. Some Medicare supplement policies also include medical coverage when you travel outside the U.S. While Medicare supplement is managed by private insurance providers, you are not limited to a provider’s network and can go to any doctor who accepts Original Medicare.
HOW DO I ENROLL IN A MEDICARE SUPPLEMENT PLAN?
The best time to purchase a Medicare supplement policy is during your Medigap Open Enrollment Period. This period lasts for 6 months and begins on the first day of the month in which you are both 65 or older and enrolled in Medicare Part B.
Are there penalties for enrolling late in a Medicare supplement plan?
No, there are no penalties for enrolling late, but keep in mind that private insurance providers may refuse to sell you a Medicare supplement policy outside of your Initial Enrollment Period (IEP) and Special Enrollment Period (SEP).
What does a Medicare supplement plan cover?
While it may vary from plan to plan, a common rule of thumb is that Original Medicare covers 80% of your costs and your Medicare supplement plan helps pay for the remaining 20%. Keep in mind that a Medicare supplement plan won’t work with Medicare Advantage plans, only Original Medicare. This means it doesn’t cover specialized care like hearing aids, routine dental cleanings, or eyeglasses.
WILL a Medicare supplement plan cover THE REMAINING COST OF THIS BENEFIT?
This chart provides a high-level overview of the coverage costs covered in most Medicare Supplement plans. Benefits vary by insurance provider and plan.
WILL a Medicare supplement plan cover THE REMAINING COST OF THIS BENEFIT?
This chart provides a high-level overview of the coverage costs covered in most Medicare Supplement plans. Benefits vary by insurance provider and plan.
Am I limited to my provider’s network with a Medicare supplement plan?
No, you are not limited to a specific company network with Medicare supplement plans like you are with a Medicare Advantage plan. Because your Medicare supplement plan works in conjunction with your Original Medicare coverage, you can see any doctor under your Medicare supplement plan who accepts Original Medicare.
What additional benefits are available to me?
If you're asking that question, it means you're ready for a free copy of our Medicare Guide. It will provide a comprehensive view of Medicare Supplement Plan benefits from Blue Cross Blue Shield of Michigan. With one of these plans, you could have…
- Coverage for part or all of your Original Medicare deductibles and coinsurance.
- Nationwide coverage to see any doctor who accepts Medicare — that's great for travelers and snowbirds!
- A 5% premium discount for members who live in the same household.
- Plus, there's a 24-hour nurse hotline, well-being programs, and much more.
HOW MUCH WILL MY MEDICARE SUPPLEMENT PLAN COST?
You’ll have to pay a monthly premium for your Medicare supplement policy and may also have to pay out-of-pocket costs like a deductible. The amount of your premium and out-of-pocket costs will vary depending on the plan you choose.
What’s the difference between a copay, deductible, and coinsurance?
While your insurance plan will pay for part of your coverage, you will likely also have to pay additional out-of-pocket costs through one of these methods:
- Copay: A preset amount you pay at the time you receive care. Copays vary from plan to plan. For example, you may have a $25 copay when you visit your primary care doctor.
- Deductible: This is the total amount of money you pay for qualifying services before your benefits kick in. For example, you pay $500 per year before your insurance provider starts covering costs.
- Coinsurance: Coinsurance is when you pay a percentage of your medical bill and your insurance covers the rest. For Medicare Part B, after you meet your deductible you will pay 20% of each medical bill and Medicare will pay the remaining 80%.
Each insurance plan has different types of payments and amounts you’ll owe, so we recommended reviewing these costs before you choose your coverage.
IS A MEDICARE SUPPLEMENT PLAN RIGHT FOR ME?
A Medicare supplement plan provides a range of benefits, from helping pay your Part A deductible and other out-of-pocket Medicare costs, to covering you when you travel abroad, to visiting any doctor who accepts Original Medicare. Remember, Medicare supplement works in conjunction with Original Medicare and does not cover prescription drugs (Part D). If you need prescription drug coverage, you can buy a stand-alone prescription drug (Part D) plan.
