Medigap Insurance Plans
Federal and state laws regulate Medigap policies. These laws are put in place to protect you as a beneficiary. Medigap policies have to be clearly labeled as "Medicare Supplement Insurance." In some states, as of June 1, 2010, you may be able to choose from up to 11 different standardized policies (Medigap Plans A, B, C, D, F, High Deductible F, G, K, L, M, and N).
Each Medicare supplement insurance plan offers a different set of basic benefits and is the same for every insurance company. Because benefits are the same for every insurance company, you do not want to overpay. Insurance companies set their own prices and decide which policies they want to sell.
Medigap policies no longer cover prescription drugs. If you have a Medicare Prescription Drug Plan (Part D) and a Medigap policy that covers drugs, then you need to tell your Medigap insurance provider to remove the drug coverage from your policy. You may choose to keep the Medigap policy with prescription drug coverage; however, you cannot have both.
Medigap Insurance Plans A, B, C, D, F, and G
Plans A, B, C, D, F, and G have more benefits, higher premiums, and lower out-of-pocket expenses. Basic benefits include Medicare Part A and B co-pay or co-insurance, and three pints of blood. Benefits include Skilled Nursing Facility co-insurance, Medicare Part A and B deductibles, Medicare Part B excess charges, foreign travel emergency services, and preventive care.
Medigap Insurance Plan High Deductible F
With the High Deductible Plan F, you will pay what is apporved by Medicare, but left over in regards to deductible and co-insurance up to a maximum calendar year deductible of $2,240 for 2018. If/When this out-of-pocket is met in a calendar year, your High Deductible Plan F will cover 100% of the approved Medicare Charges that are left.
Medigap Insurance Plans K and L
Plans K through L have lower premiums and higher out-of-pocket expenses. Basic benefits include Medicare Part A hospital benefits, Medical Part A and B co-insurance or co-pay, blood, and hospice care. Benefits include Skilled Nursing Facility co-insurance and Medicare Part A deductibles.
Medigap Insurance Plans M and N
Plans M and N feature Higher cost sharing and lower anticipated premiums for policyholders. Plan M - has increased cost-sharing (50% of the Part A Deductible, no coverage for Part B Deductible). Plan N - has a new co-pay structure ($20 co-pay for physician visits, $50 co-pay for ER) and no coverage for Part B Deductible.
Remember, when choosing a Medigap plan, compare each plan and then compare different insurer quotes. You want to make sure you have adequate coverage to meet your needs, but you don't want to pay more when each plan is the same for every insurance company.