Medigap Plan Highlights

Medigap plans can sometimes be confusing to understand, beginning with the fact that they also go by supplemental plans. For many people, a Medigap plan explains what the purpose of purchasing this additional insurance. Sometimes there is a small gap in coverage that can result from your original medicare not covering all of your needs. For example, If you are admitted to the hospital, original medicare does not cover the deductible for part A. This means that each time you are admitted to the hospital in the year 2020, barring multiple admissions within a 60 day period, you will be required to pay the $1,408 part A deductible. For those who suffer from chronic diseases where they know they will be admitted to the hospital, it may be worth the money to purchase a Medigap plan.

Medigap plans are federally regulated, meaning no matter which insurance agency you purchase your plan from it will carry the same benefits. For example, a supplemental plan F from Blue Cross Blue Shield will have the same benefits as a plan F from Aetna, though each agency will get to choose how much the premium will be. For this reason, it can be very cost-effective to shop around before signing up for a plan. 

In an effort to help you choose which Medigap plan you should go with, here are some explanations surrounding the benefits for a few popular plans. Please keep in mind that not every plan is available from every insurance agency. They rotate the plans based on the year to determine how much they will spend on beneficiaries. 

Plan F

A plan F is the Cadillac of Medigap plans. With this plan, everything is covered 100 percent. The challenge with the plan F is that it can cost an average of $150 a month for a premium, something that some individuals on a fixed income may struggle with.

Plan F Select

A plan F select is an incredible plan where you have all the benefits of the basic plan F, though medicare regulates which hospitals you are required to use. For many, it is worth it, however, since the premium is about $40 lower each month. 

Plan G

Much like a plan F, a Plan G covers almost everything on the chart, except for a Part B deductible. This may deter some people from purchasing it, though you should know that the deductible is only one calendar year payment of $198. Considering that you will likely save more than that with the premium, it may be worth it. 

In conclusion, it is obvious why these three plans are so popular. This is the ultimate way to cover the gaps that can be left from original medicare.