What is a Medicare Supplement?

Also referred to as Medigap, a Medicare Supplement plan covers some of the costs not covered by original Medicare.  These policies are sold by private insurance companies and will cover deductibles, co-payments, and coinsurance that Medicare leaves on the table.  A popular option among Medicare supplements these days is Plan G.  Plan G will cover all of the costs that Medicare does not pick up with exception to the Medicare part B deductible.  At the time of this writing the current Medicare part B deductible is $198 annually.  Medicare pays all of the claims first, then the secondary Medigap plan pays leftover costs.  In the case of a client using original Medicare and a Medicare Supplemental Plan G all that person would be responsible for would be the $198 annual deductible.  That’s it!! No further out of pocket costs for covered medical expenses.  Sounds pretty good, right?  It definitely is, but alas, like most things in life, nothing is for free and there are always trade-offs.  Let’s get into the Pros and Cons of Medicare Supplemental plans so you can decide if they are right for your particular needs.

Medicare Supplement Pros

Medicare Supplemental Plans (Medigap) are very straightforward and easy to use.  You will be able to use your Medigap plan at any facility that accepts original Medicare.  This gives you a broad scope of doctors, specialists, and hospitals to choose from.  As long as they are accepting new patients and take original Medicare, you will be able to seek care there.  Your out of pocket expenses are typically minimal with a Medigap plan.  This can vary somewhat depending on the Medicare Supplemental plan you choose (Plan G, Plan N, etc. ) but generally speaking your costs and risk exposure will be greatly reduced by having a Medigap policy.  It’s also important to note that Medicare Supplement plans are standardized, meaning for instance, a Plan G is the same coverage no matter which insurance company you purchase it from.

Medicare Supplement Cons

Its never all sunrise and roses, right folks?  The main con of choosing a Medicare Supplement plan is the monthly cost.  Monthly premiums can vary from insurer to insurer quite a bit.  Premiums are generally determined by age, gender, location, and tobacco usage.  Please feel free to contact us for a personalized quote.  When enrolled in a Medigap plan, you are responsible for paying the monthly premium whether you use the plan or not.  This can be a burden for people who don’t go to the doctor very often.  The monthly cost of a Medigap plan can add up quickly (especially for those living on a fixed income in retirement) and they can sometimes be cost prohibitive.  Medigap plans also do not include drug coverage so the client will have to get a stand alone Part D prescription drug program to pair with their Medicare supplemental plan.

Summary

With all of the different options out there, a common question that we get from clients is “What is the best plan? This is a subjective question and really should be phrased “what is the best plan for me?” Everyone’s needs are different, that is why at R & K White Financial Corp we take the time to do a through needs analysis so that we can make appropriate recommendations.  Medicare Supplemental plans offer great coverage and we have many satisfied members who have them.

Enrollment Questions?

The R&K White Financial Team is here to answer any questions or concerns regarding Medicare and enrollment. Please don’t hesitate to contact the R&K White Financial Team with any Medicare questions. : (407) 509-7756  : rwhitefinancial@outlook.com

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