Is Buying A Medigap Plan Worth It?

Medicare Supplement Plans, also known as Medigap, serve to lower medical costs beyond what Original Medicare’s coverage can provide. It is optional, but strongly encouraged for those who choose not to enroll in Medicare Advantage in the future. There are many areas in which you can save on medical costs, but there are also factors to take into consideration before enrolling.

What Can I Get With Medigap That Other Plans Won’t Offer?

Medigap offers the potential to walk away from a medical service without having to pay anything at all. In fact, that is its purpose.

This is not to criticize Original Medicare’s coverage – in fact, you can’t get Medigap without it – but even a small percentage of the medical expenses you’d have left over can be overbearing.

Take Medigap Plan A for example. It is the bare minimum when it comes to Medigap, but it can still save in these ways:

  • It covers all of Part A’s coinsurance and hospital costs, up to a full year after Medicare benefits have been used up. With daily coinsurance costs of $389 for days 61-90 and $778 for days 91-150, you could theoretically owe $61,073 despite having Medicare coverage. That number can surpass six figures if you need to stay longer. You would owe $0 with Medigap.
  • You’ll pay nothing for the first three pints of blood for transfusions
  • Medigap covers the remaining 20% of your outpatient expenses after Part B covers 80%. But there’s no limit as to what an outpatient cost can be – especially if you’re undergoing chemotherapy. It’s not unrealistic for costs to reach $100,000. Being left with a $20,000 bill, while a small fraction of the total cost, can still be overwhelming. Medigap would take care of this in full.

There are 9 other Medigap Plans (B, C, D, F, G, K, L, M, and N). These are the other possible benefits, depending on the Plan you choose:

  • Part A skilled nursing facility coinsurance
  • Part A deductible ($1,556 per benefit period)
  • Part B deductible ($233 per year; only Plans C and F cover this, and they’re exclusive to individuals who turned 65 before January 1, 2020)
  • Part B excess charges
  • 80% foreign travel emergency costs

What Should I Know Beforehand?

Medigap eligibility requires enrollment in specific forms of Medicare, and has a narrow enrollment period:

  • You must have Medicare Part A and Part B (Original Medicare). You cannot have Medicare Advantage
  • The best time to join is within six months of enrolling in Original Medicare. This is the Medigap Open Enrollment Period. After this point, your insurer may not let you join a Medigap policy

Get More From Your Coverage

Medicare Sharks is here to maximize your savings and minimize your healthcare expenses. One way is through Medigap, and we’ll be more than happy to help you obtain this policy. Call us today at (561) 288-2080, or reach us at (561) 288-2396.