How do Medicare Supplement Plans work?
KEY FACT: Medicare Supplement Plans are designed to compliment Original Medicare, not replace it.
Medicare Supplement Plans are designed to help fill the insurance gaps in your Part A and Part B Original Medicare coverage. When you enroll in a Medigap plan you’ll choose from one of the 10 types available and you’ll pay a Medigap premium in addition to your Original Medicare premium. Your Medigap carrier will then, depending on the benefits offered by your chosen plan, help cover your out-of-pocket healthcare costs.
What do Medicare Supplement plans cover?
KEY FACT: Medicare Supplement plans do not cover prescription drugs, to add this coverage you may choose to consider enrolling in a Medicare Prescription Drug plan.
Medicare Supplement Plans help cover out-of-pocket costs for Original Medicare Parts A and B. Benefits offered vary between plan types. Insurers can offer up to ten types of plans, which are labeled A, B, C, D, F, G, K, L, M, N, but they do not have to offer all ten different plan options. The benefits offered between the plan types vary, so for example Plan B offers different coverage than plan G. However, the plans are standardized so that each plan type of the same letter must offer the same coverage. This means that a Plan type A offered by one insurer will provide the same benefits as a Plan type A from another insurer making it easy to compare plans from different carriers.
The Medicare Supplement comparison chart below shows how coverage varies between plans:
If you are a resident of Massachusetts, Minnesota, or Wisconsin your plan options are standardized differently.