The purpose of a health insurance plan is to help pay for general medical expenses especially in times of unexpected illness or accidents that could make a huge financial impact on your budget. Medicare Supplement Insurance, which is a private insurance, helps pay some health care costs that Original Medicare doesn’t cover, such as copayments, coinsurance, and deductibles. It basically fills the gap left over by Original Medicare Parts A and B. So, having both an Original Medicare Insurance Plan and a Medicare Supplement Insurance Plan is ideal.
There are 10 Medicare Supplement Insurance Plans—A, B, C, D, F, G, K, L, M, and N—that are divided on the basis of the coverage they offer. However, no matter where they are located (except in Massachusetts, Minnesota, and Wisconsin, where the policies are different) every insurance company that offers the Medicare Supplemental Insurance Plans will offer the same coverage, but the cost of premiums may vary. So, it is best to compare these plans before considering investing in one.
- Part A coinsurance and hospital costs (up to a year after the Medicare benefits are used up) are available in all Medicare Supplement Insurance Plans.
- Part B coinsurance or copayment, the first 3 pints of blood, Part A hospice care coinsurance or copayment, and skilled nursing facility care coinsurance are offered 100% by most plans. The only exceptions to this are Plans K and L, which offer 50% and 75%, respectively. Plan N pays 100% for Part B coinsurance and a copayment of up to $20 for some office visits and up to $50 for emergency room visits that do not end up as inpatient admissions.
- Part A deductible is not offered by Plan A, while Plans K and M offer 50%, Plan L offers 75%, and the rest offer 100% of the cost.
- Part B deductible is offered only by Plans C and F, while foreign travel exchange is eligible up to 80% only in Plans C, D, F, G, M, and N.
- The out-of-pocket limit is available for around $5,240 in Plan K and for around $2,620 in Plan L.