How to Compare Medicare Supplement Plans

With age, health tends to decline, and healthcare needs become more complicated. That’s why having reliable health insurance coverage is essential for senior citizens, and millions of American seniors rely on Medicare for their health insurance needs.

Medicare consists of several parts; Part A and Part B are known as Original Medicare.

While Original Medicare will cover a lot of your healthcare needs, it won’t cover all of your expenses. For the things that it doesn’t include – copayments, deductibles, and coinsurance, for example – you’ll need to pay the difference.

The out-of-pocket expenses that are associated with Original Medicare can become cost-prohibitive for many. That’s why Medicare Supplement Insurance can be a real lifesaver.

If you recently enrolled in Medicare or you’re about to, and you’re planning on purchasing Medicare Supplement Insurance, there are several factors you’re going to want to take into consideration to ensure that you choose a policy that meets your healthcare and budgetary needs.

There are several Medicare Supplement plans, and the benefits they offer and the rates vary. With so many options, carefully comparing the options is essential.

Below, we’ll explain why you should compare Medicare Supplement plans, and we’ll provide some simple tips that you can use to make a successful comparison and choose the right policy to meet your unique needs.

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How Medicare Supplement Plans Work

Medicare Supplement Insurance – also known as Medigap – is private insurance that is designed to supplement Original Medicare. It doesn’t replace Original Medicare, but rather, it works alongside it, filling in the gaps that Medicare Part A and Part B don’t cover.

Part A, often referred to as hospital insurance, covers the cost of expenses related to medical care and services you’ll receive in an inpatient setting, such as hospital or hospices.

Part B, often referred to as medical insurance, covers the cost of expenses related to medical care and services you’ll receive in outpatient settings, such as doctor’s offices and medical screenings.

Original Medicare will cover 80 percent of your medical expenses; you’re responsible for the remaining 20 percent. Medicare Supplement Insurance is designed to offset those out-of-pocket expenses.

When you receive medical care, after Medicare Part A and Part B cover the expenses for the costs they cover, your Medigap insurance will kick in and cover the cost of the benefits your plan offers. It makes your healthcare easier to predict and budget for and more affordable.

Why Comparing Medicare Supplement Insurance is Important

There are 10 different Medicare Supplement Insurance plans. The plans are named for letters, and each plan covers different expenses. Policies are issued by private health insurance companies and are regulated by the Centers for Medicare and Medicaid Services (CMS).

All plans of the same letter must offer the same standard benefits, as required by the federal government via CMS, which means that no matter which insurer provides a policy and where the policy is purchased, it must offer the same standard benefits; for instance, if someone purchases Plan F from United Healthcare in Arizona, and someone else purchases Plan F from Aetna in Nebraska, the policies must offer the same standard benefits.

While policies have to offer the same coverage, no matter the location or the insurer, providers set their own rates. Additionally, benefits vary from policy to policy; some policies cover more out-of-pocket expenses than others.

Moreover, insurance companies are permitted to offer policyholders additional benefits on top of the standard benefits. It is for these reasons that comparing Medicare Supplement Insurance plans is essential.

Comparing policies will help to ensure that you choose a Medigap policy for 2024 and an insurer that meets your unique healthcare and budgetary needs.

How to Compare Medicare Supplement Plans

So, how do you go about comparing the Medicare Supplement Insurance plan? Here are a few simple tips that can help guide you through the process so that you can make the best choice.

Understand Medigap Plans

For starters, you should take the time to gain a basic understanding of Medigap supplement insurance plans.

As mentioned, these policies are designed to cover the costs that Original Medicare doesn’t cover, and they’re sold by private insurance companies. Also as stated, there are 10 lettered plans and each lettered plan offers different benefits.

When comparing plans, it’s important to familiarize yourself with the different policies and the coverage they provide.

Consider Your Healthcare Needs

It’s also important to consider your healthcare needs when you’re comparing Medicare Supplement Insurance plans. You want to make sure that you choose a policy that will cover the medical care and services that you’ll require.

For instance, if you have been diagnosed with a chronic condition and will require regular doctor visits and treatments, choosing a policy that offers more coverage may be the best choice for you.

Conversely, if you’re in relatively good health and won’t require as much medical care, opting for a policy that covers the basics may be a better choice for you.

Consider Your Budget

You’ll also want to make sure you take your budget into consideration when you’re comparing Medicare Supplement plans. As noted, insurers set their premiums, and you’ll want to make sure that you choose a policy – and an insurer – that will work with your budget.

Keep in mind that policies that offer more coverage tend to cost more; however, if you require healthcare on a regular basis, paying higher premiums for a plan that offers more coverage over a policy that charges lower premiums and offers less coverage will actually end up costing you less in the long run.

Finding the best Medicare plan doesn’t have to be confusing. Whether it’s a Medigap plan, or you have questions about Medicare Advantage or Medicare Part D, we can help.

Call us today at 1-888-891-0229 and one of our knowledgeable, licensed insurance agents will be happy to assist you!