Medicare Supplement Plans
There are 10 different Medicare Supplements—plans A, B, C, D, F, G, K, L, M, and N. Each of these plans offers its own amounts of coverage at relative prices, but all are excellent ways to cover many of the out-of-pocket costs of Original Medicare.
Medigap Plan A
This is the smallest-coverage supplement plan available. You will pay a smaller premium, but keep in mind that you will pay more out-of-pocket for various services as you need them.
Plan A covers your Part A coinsurance and hospital costs, Part B coinsurance or copayment, your first 3 pints of blood for transfusions, and Part A hospice care coinsurance or copayment.
Medigap Plan B
This plan is similar to Plan A because, with both plans, you are paying a smaller premium, but more out-of-pocket as you receive uncovered items. It covers all of the same benefits as Plan A, as well as your Part A deductible.
Medigap Plan C
Plan C is one of the highest-coverage options. You will pay a higher monthly premium, but less out-of-pocket for individual items.
Plan C covers your Part A coinsurance and hospital costs, Part B coinsurance or copayment, your first 3 pints of blood for transfusions, Part A hospice care coinsurance or copayment, skilled nursing care facility coinsurance, Part A and B deductibles, and 80% of foreign travel emergency care.
Do keep in mind that to enroll in Plan C, you must have been eligible for Medicare before January 1, 2020.
Medigap Plan D
Plan D offers identical coverage to Plan N. The only difference, however, is how copayments are accounted for—with Plan D, they are paid for with your monthly premium, meaning that you won’t pay anything when you receive the service, but more on a monthly basis.
Plan D covers your Part A coinsurance & hospital costs, Part B coinsurance/copayment, your first 3 pints of blood for transfusions, Part A hospice care coinsurance/copayments, skilled nursing care facility coinsurance, and your Part A deductible.
Medigap Plan F
Plan F is the highest coverage option. Keep in mind, however, that many insurance companies are phasing out this plan in favor of the high-coverage alternatives C and G. So, keep in mind that to enroll in Plan F, you must have been eligible for Medicare before January 1, 2020.
Plan F covers 100% of your Part A coinsurance and hospital costs, Part B coinsurance or copayment, your first 3 pints of blood for transfusions, Part A hospice care coinsurance or copayment, skilled nursing care facility coinsurance, Part A and B deductibles, Part B excess charges, and 80% of foreign travel emergency care.
Medigap Plan G
Plan G is identical to Plan C, except it includes Part B excess charges. It is also identical to Plan F, except it does not include the Part B deductible.
Medigap Plan K
Plan K is considered a cost-sharing plan. This means, for every benefit you receive, your plan pays its “share” of the costs. For Plan K, this is set at 50%, meaning that your plan pays for half, and you pay for the other half.
Medigap Plan L
The same principle applies to Plan L, but at 75% paid for by the policy rather than 50%, meaning that your premiums are a bit higher. These plans are a great option to receive coverage for a variety of items and services without having to account for 100% of the cost in your premium.
Medigap Plan M
Plan M is similar to Plans D and N, but only covers half of your Part A deductible rather than 100%. This may seem like a small difference, but it will reduce your monthly premiums if your budget cannot quite afford D or N.
Medigap Plan N
As mentioned above, Plan N is identical to Plan D. While Plan D has a higher premium because it pre-pays for copayments, Plan N premiums are lower because you cover the copayment out-of-pocket as needed.
