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What are Medicare Supplement Plans?

Medicare Supplement Plans are standardized plans designed to supplement your Original Medicare benefits. These plans are identified by a plan letter and they range from plans A-N. Technically, there are 11 plans because Plan F comes in the form of a high-deductible plan and is referred to as “High Deductible Plan F”.  The most popular plans are F, G and N. These plans make the most sense to buy when you compare cost vs. benefit across all the plans.

Why are Medicare Supplement Plans Unique?

Medicare Supplement or "Medigap" Plans are unique because they are standardized by the government. This means that the plan benefits are always exactly the same, by letter no matter which insurance company you purchase the Plan from. So a Plan F with AARP United Healthcare has EXACTLY the same benefits as a Plan F with any other insurance company. Additionally, with any Medicare Supplement plan with any company, you always have the freedom to choose any provider nationwide who accepts Medicare. This means there are no networks and doctors do not need to contract with a certain insurance company to accept your Medicare Supplement Plan. Different insurance companies do charge different prices for these Medicare Supplement Plans, so it is important to shop around for the best prices in your area.

What are Medicare Advantage Plans?

Medicare Advantage Plans, sometimes called "Part C" or "MA Plans," are offered by private companies approved by Medicare. If you join a Medicare Advantage Plan, you no longer receive benefits through Original Medicare, although you still have Medicare Parts A and B, and you must still pay your Part B premium. 

Medicare Advantage Plans cover all Medicare services. Each Medicare Advantage Plan can charge different out-of-pocket costs. They can also have different rules for how you get services, like:

  • Whether you need a referral to see a specialist

  • If you have to go to doctors, facilities, or suppliers that belong to the plan for non-emergency or non-urgent care

These rules can change each year.

All Medicare Advantage Plans must include a limit on your out-of-pocket expenses for Part A and B services. For example, the maximum out-of-pocket cost for HMO plans in 2018 is $6,700. These limits tend to be high. In addition, while plans cannot charge higher copayments or coinsurances than Original Medicare for certain services, like chemotherapy and dialysis, they can charge higher cost-sharing for other services.

Remember: MA Plans may have different:

  • Networks of providers

  • Coverage rules

  • Premiums (in addition to the Part B premium)

  • Cost-sharing for covered services

What you pay in a Medicare Advantage Plan depends on several factors, as these plans are regional. Please contact us for more information about plan availability in your area. 

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