• Brad Gunning

What is Medicare Supplement Insurance?

Updated: May 22, 2019


As you have already heard, Medicare Parts A and B - also known as "Original Medicare" - only covers about 80% of your medical expenses. There is also total of $1,454 per year in deductibles with Original Medicare.

With Medicare Parts A and B only covering 80% of your expenses, there is a remaining 20% Medicare "gap." This is where Medicare Supplement insurance, informally known as "Medigap", steps in.

Let's talk about Medicare Supplement insurance and explore how you might go about choosing a plan.

What is Medicare Supplement Insurance?

Medicare Supplement insurance is available in several different plans that are all government regulated. Even though these plans are offered by individual private insurance companies, they are required by law to be exactly the same no matter which insurance company you buy from.

Example of a Medicare Supplement Insurance Policy

Let me give you an example. The most comprehensive Medicare Supplement plan is called Plan F. It basically covers everything that is not covered by Medicare Parts A and B, including the deductible. Let’s say you request a quote for Medicare Supplement Plan F from Company A, Company B, and Company C.

I’ll use real numbers, so let’s say you live in Tampa, Florida and are a female turning 65 in a couple months.

  • Company A quotes you $184.10

  • Company B quotes you $189.10

  • Company C quotes you $194.00

These are real numbers. How do you choose?

Mainly you can choose based on price. All three of these plans from Companies A, B, and C, are required by law to be exactly the same. It’s as simple as choosing the cheapest one.

The only thing that might make you choose a different plan is if you really don’t like one particular company or if you have had extremely good customer service from Company B, for example.

We also advise our clients to be weary if one of the cheaper companies is new to the Medicare market. Often a newer company will start off with low rates to attract customers and then hike the prices next year. We prefer companies that have a bit more of a track record so that we can predict whether rates will increase, and if so, by how much.

What are the Different Medicare Supplement Insurance Plans?

There are multiple Medicare Supplement plans (Plan A, Plan B, Plan C, Plan D, etc.). Most people choose Plan F, Plan F high deductible, Plan G or Plan N. Give us a call and we can explain how they differ – basically some are a little cheaper and offer slightly reduced coverage, but are still appropriate for most people. Luckily, because there are up to ten plans in most states, we can help you find a plan that strikes the balance between meeting your budget needs and your medical coverage needs.

#medigap #MedicareSupplementInsurance

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