A good majority of seniors over the age of 65 have the original Medicare policy. Medicare by itself may be sufficient, but sometimes the out of pocket costs can be overwhelming. If you would like to reduce the amount of cash you spend when you visit a health facility, then you need to start the search for the best Medicare Supplement in 2021.
Hospital visits paid for by Medicare are subject to deductibles, coinsurance, and copayments. The Federal Government has allowed private insurance companies to sell policies that cushion you from out of pocket costs. The plans are called Supplemental Insurance or Medigap and help bridge the gap left by Medicare.
Coinsurance is a percentage of costs that you will pay every time you make use of medical care. Copayments are amounts set by Medicare, which you must spend every time you receive medical services. A deductible is an amount you have to pay before your insurance provider starts covering your costs.
Some Medicare supplements will cover all your out of pocket costs while some will just cater for a percentage. The bottom line, however, is that they will offer some help. I intend to equip you with enough knowledge of Medigap policies to aid your shopping journey.
What are the Best Medicare Supplement Plans for 2021?
For you to purchase any Medicare Supplement, you first need to have Medicare Part A also known as Hospital Insurance and Part B which is Medical Insurance. You need to note that even the best Medicare Supplement 2019 policies available do not cover prescription drugs. If you need your medicine included, you will need to purchase Medicare Part D separately. The letters A, B, C, D, F, G, J, K, L, and N denote the different Medicare Supplement plans
Plans A to G covers100% of Medicare Part A coinsurance as well as payments for 365 days after your Medicare benefits run out. The programs also cater for Part B coinsurance or co-payments, the first three pints of blood and hospice coinsurance and copayments. Plans A and B do not cover coinsurance for Skilled nursing facilities while plans K and L cater for 50% and 75% of the coinsurance costs respectively. The two plans K and L also cover 50% and 75% of the first three pints of blood, hospice coinsurance or copayments and Medicare Part A deductibles.
So What is the Best Medicare Supplement Plan?
Plan F can be considered the best Medicare supplement since it is the most comprehensive, except it’s not available any more to new beneficiaries and those who continue to remain on Plan F beyond January 1st of 2020 are at risk of some very high rates increases now that the plan is closed. . The plan covers all the issues in plans A and B and also Hospice coinsurance and copayments, Medicare Part A and B deductibles. There is a $50,000 lifetime maximum for your international health care.
Medicare Supplement Plan G
With Plan F out, Plan G is very much considered the best Medicare supplement plan. It only has 1 deductible which is for Part B Medicare, and then it acts just like Plan F with 100% coverage after that’s paid. The premiums are relatively low and the coverage is outstanding, therefore we give the away of what is the best Medicare supplement plan to Plan G.
Plans C, D, F, and G also cover up to 80% of emergency treatments abroad. Plans K and L have out of pocket limits of $5,120 and $2,560 respectively. Plan N covers 100% of Part B copayments, but in some instances, you may pay up to $20 for some doctor’s visits. Plan N may also cover Part B excess charges. You may even pay up to $50 copayment when you have to visit the emergency room and do not end up in inpatient care.
How Does Medicare Advantage Plan Compare to Medicare Supplement in 2021?
First of all, private companies issue Medicare Advantage and Medigap. They both also are dependent on original Medicare, that is, you need to have Part A and Part B to purchase them. They, however, cannot co-exist, if you have a Medicare Advantage plan, you need to exit it before buying a Medicare Supplement. Medicare Supplement plans are the same no matter where you purchase them; the only exception is the plans in Wisconsin, Massachusetts, and Minnesota. The Medicare Advantage plans are standardized, but their costs vary from one insurance company to the next.
With Medicare Advantage, you can have your provider pay your Part A and B premiums for you, but when it comes to Supplemental insurance, you will have to pay your monthly costs independently. The Medicare Advantage plan policies cover a lot more than the original Medicare and in some instances have an out of pocket maximum. When the insured reaches the out of pocket maximum dollar amount, the insurance provider pays 100% of your cost henceforth.
While Medicare Advantage plans may cover dental visits, long-term care, home care and even eyewear. Medicare Supplements in 2021, on the other hand, will not cater for what the original Medicare will not.
Which Plan Is Best For You?
The ultimate choice is yours. Your provider may try to tell you what the best option is. Your friends may want you to have the same plan as theirs; several articles on the internet will also have lots of opinions to throw around which may end up doing nothing more than adding to your confusion. However, the most critical issues at play in your choice should be your health requirements and your financial capability.
You should also look for an insurance provider with rave reviews and integrity. Plan F is the most comprehensive but at the same time, has a high price. If you have chronic conditions or travel a lot, it may be the best option. If on the other hands all you want is a cushion against out of pocket costs, any of the other plans will work well for you. If, however, you visit your skilled nursing facility, you may want to steer clear of plan A and B.
The best Medicare supplement will be different for everyone. Look at your income and benefits you may be receiving. You may also want to talk to a financial planner. See, the thing is, you will still be paying your Part B premiums and maybe Part A if your work life was less than ten years before retirement. You should also remember the unfortunate fact that your body is no longer what it used to be and you may not have the ability to work as much as you did when you were younger.
Shopping for any form of insurance is not easy; you need to be very careful not to be swayed by fad or friends but rather what will benefit you in the long term. Hopefully, after getting an idea of what the best Medicare Supplement in 2021 offers you, your decision will be much easier.