Medicare Supplement Plans are the traditional coverage you can get for your original Medicare. They are required to cover out-of-pocket expenses when you go to see a healthcare professional.
There are two types of these plans: Medigap and Medicare Advantage. Understanding which type of plan is right for you depends on your needs, as well as your health status. This guide will introduce you to these different types of Medicare Supplement Plans so that you can choose the one that best suits your situation.
Understanding Different Types of Plans
There are two types of Medicare supplement plans: Medigap and Medicare Advantage Plans. Medigap Plan is a policy that you purchase to cover any out-of-pocket expenses your original Medicare doesn’t cover.
When you receive care from a physician, hospital, or other healthcare providers, your original Medicare will only cover certain parts of the cost. If you have a Medigap plan, it will fill in the gaps and pay for whatever is left over. There are 10 different kinds of Medigap plans.
These include Plan A, which covers everything but hospice care; Plan B, which covers everything except hospice care and out-of-hospital dialysis; and Plan C, which covers everything except hospice care, out-of-hospital dialysis, and mental health treatment on an outpatient basis.
The other type is Medicare Advantage Plans. This type of plan is sold by private insurers as an alternative to original Medicare. It provides all the benefits offered by Original Medicare such as hospitalization coverage (Part A), meds coverage (Part B), and doctor visits (Part D) – but it also includes additional benefits not covered by the traditional plan including vision and dental care (Dental & Vision).
This means that if you purchase this type of plan you won’t have to purchase a separate dental or vision plan. It’s important to consider what’s best for your situation when deciding between these two types of plans.
What is Medigap?
This will start with a brief explanation of the basic Medicare Supplement Plan, Medigap. If you want to learn more about Medicare Advantage Plans and the Affordable Care Act, check out the other guide.
Medigap is not insurance in and of itself. Rather, it is a type of coverage that supplements Original Medicare. These plans work by giving you some of your original coverage back. For example, if your hospital costs are $500 per day but Medigap only pays for 80 percent of that, then you will owe $300 for each day you stay in the hospital.
What is Medicare Advantage?
Medicare Advantage plans are a type of Medicare Supplement Plan. These are healthcare plans that were created by private insurance companies, and they work alongside Medicare to provide you with benefits.
This can be an appealing option for people who would like to have more freedom in choosing their healthcare providers. They also typically come with additional perks, like dental or vision coverage.
The Medicare Supplement Plan Timeline
The basic timeline for the supplement plans goes like this. First, you get your original Medicare coverage. Then you meet the qualifications to get a Medigap Plan or a Medicare Advantage Plan. After that, you purchase the plan of your choice, and it goes into effect. Lastly, when you need medical services, you go see doctors and hospitals without having to pay more than your predetermined out-of-pocket limit.