The Medicare Supplement Plans also popularly known as Medigap protects those who purchase the traditional Medicare plan against many out of the pocket costs. The one who purchases the Medicare Supplement Plans have to pay a premium to buy the plan and this is in addition to the amount that he pays towards the Medicare part A, B and D.
Medicare Supplement Plans
The Medigap plan is sorted by letters. You need to choose from A, B, C, D, F, G, K, L, M and N. The inclusions however of these plans are standardized but the amount that you will pay for these plans could be different. So it makes sense that you look around a bit to get a good deal.
The plan F is mostly preferred by many because it covers everything. It offers a very comprehensive coverage and it fills in all the gaps of Medicare insurance. There are no or very less out of the pocket changes when you buy the plan F.
The Medicare advantage plan offers the Medicare part C and it offers more coverage at low cost than if you were to purchase the Medicare plan that is offered traditionally and then buy the Medigap policies.
You need to buy the Medicare advantage plan in 2019 to save money also through a private insurance company and there you will get the basic part A, part B and Part D coverage as well as some additional coverage.
This is very similar to a private health insurance plan. There are many services offered with a small amount of copayment. It also depends on what your state offers.
The rules will be different for each company because it is a private plan and each company decides its rules independently. So it could be that some of the companies would want you to have a referral in order to meet a specialist and others many not require a referral.
Which is a better plan for you?
No insurance company would be selling you both the Medigap plan and the Medicare advantage plan. You however need to consider a few factors before you make the purchase:
- Cost –
The Medigap plan charges a higher monthly premium but the out of the pocket expense could be lower than the Medicare advantage plan. But the Medicare advantage plan costs less and offers more benefits so it could fit your budget better.
- Choice –
The Medicare advantage plan limits the doctor and hospitals from where you can be treated. It may not cover the doctors out of the network. This is particularly true if you require going to some specialist or a particular hospital not under the plan.
- Lifestyle –
The Medicare Advantage plan would mostly be operating in a particular region only. If you keep moving then then Medigap policy is better for you.