Summary:
If you have a Medicare Supplement insurance plan, you pay your premium separately from your monthly Medicare premiums, like Medicare Part B. You pay your Medicare Supplement Insurance (Medigap) premium as directed by the insurance company that sold you the plan.
Medicare Supplement insurance plans are sold by private insurance companies and may help you pay for out-of-pocketMedicare costsfor services covered under Original Medicare (Part A and Part B).
Paying for your Medicare Supplement Insurance Plan
Medicare Supplement planstypically charge a monthly premium. The amount can vary widely depending on several factors, including which plan you choose and what extent of coverage it offers, which age-related pricing method the plan uses, and whether you were subjected to medical underwriting or not.
Since Medicare Part B premiums are paid to the government and Medicare Supplement insurance premiums are paid to the private insurer, the payments cannot be made together. . Your private health insurer will let you know your payment options for your particular Medicare Supplement insurance plan costs.
Some plans may offer discounts depending on how you pay — for example, if you pay up front once a year, or if you pay using electronic funds transfer. With an electronic funds transfer, you can set up a monthly payment to debit automatically from a checking account or credit/debit card. Different plans may have different payment options.
Several factors can influence your Medicare Supplement insurance plan costs.
- The first factor is what your plan covers. In general, the more benefits a Medicare Supplement plan has, the more it’s likely to cost.
All Medicare Supplement insurance policies available in most states are standardized with lettered names (A, B, C*, D, F*, G, K, L, M, and N). Each lettered plan includes a distinct set of basic benefits. All Medicare Supplement insurance plans generally cover at least part of:
- Medicare Part A hospital cost coinsurance
- Medicare Part B coinsurance
- First three pints of blood
- Hospice care coinsurance or copayments
*Plans F and G also offer a high-deductible plan in some states. With this option, you must pay for Medicare-covered costs (coinsurance, copayments, and deductibles) up to the deductible amount of $2,700 in 2023 before your policy pays anything. (Plans C and F aren’t available to people who were newly eligible for Medicare on or after January 1, 2020.)
SomeMedicare Supplement plansmay cover at least some of these Medicare-approved expenses: skilled nursing facility care coinsurance, Medicare Part A deductible, Medicare Part B deductible, and Part B excess charges. Some plans offer limited coverage of foreign travel emergencies. Different plans may cover the same expense–for example, skilled nursing facility care coinsurance.
The next factor influencing your Medicare Supplement insurance plan cost is the pricing system used. There are three ways that Medicare Supplement insurance plans may be priced or “rated.”
- The first way doesn’t take age into account when setting the price of the plan. This is called community-rated or “no-age-rated.”
- The second way bases the premium on the age you are when you buy the Medicare Supplement insurance plan. This is called issue-age-rated or “entry age-rated.”
- The third way continues to increase premiums as you get older. This is called attained-age-rated.
- Please note, in all three ways, premiums may go up because of inflation and other factors.
A third factor influencing your Medicare Supplement insurance plan andMedicare costsis whether or not you were subjected to medical underwriting. Medical underwriting involves evaluating your health condition, so people with health problems might be charged more for their health-care plans than people who are healthy – or might be denied coverage altogether.
You won’t be able to buy Medicare Supplement plans that cover the Medicare Part B deductible – Plan C and Plan F –if you’re new to Medicare.If you became eligible for Medicare on January 1, 2020 or later, you won’t be able to buy Medicare Supplement Plan C or Plan F. You’ll be able to keep your Plan C or Plan F if you already have one. Also, you might be able to buy Plan C or Plan F if you qualified for Medicare before January 1, 2020.
You might be able to buy a high-deductible version of Medicare Supplement Plan G, which is very similar to Plan F. The only difference between Plan F and Plan G is that Plan G doesn’t cover the Medicare Part B deductible.
To avoid medical underwriting, you may want to buy a Medicare Supplement insurance plans during your Medicare Supplement Open Enrollment Period, when you have a guaranteed-issue right to acceptance in the plan. The Open Enrollment period is a 6-month window after you’re both 65 or older and enrolled in Medicare Part B. Some states have additional Medigap Open Enrollment periods including those for people under age 65.
Once you’ve decided on a Medicare Supplement insurance plan, be sure to pay the premiums on time, as the plan can discontinue your coverageyou for non-payment.
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Can I pay Medicare Supplement with Social Security?
Yes, you can choose to have your Medicare Supplement (Medigap) premiums automatically deducted from your Social Security benefits. This is a convenient option for many beneficiaries as it ensures timely and consistent payment of premiums.
You can also choose to pay your premiums directly to the insurance company if you prefer. It’s important to note that not all insurance companies may offer the option to pay through Social Security, so it’s best to confirm with your insurer. Additionally, if you are newly eligible for Medicare, you will need to enroll in Medicare Part B before you can enroll in a Medigap plan, and your Part B premiums cannot be deducted from your Social Security benefits.
Is Medicare Supplement cost based on income?
Medicare Supplement plan premiums typically depend on factors such as the type of plan, your age, gender, location, and health status.
However, it is worth noting that some insurance companies may offer discounts on Medicare Supplement plans to individuals who meet certain criteria, such as being a non-smoker or having multiple policies with the same company. It’s important to shop around and compare plans from different insurance providers to find the best coverage and rates that fit your budget and healthcare needs.
Is there a Medicare Supplement that covers everything?
No, there is no Medicare Supplement plan that covers everything. Each plan has its own set of benefits and coverage options, and while some may offer more comprehensive coverage than others, none provide coverage for all healthcare expenses.
However, Plan F was previously the most comprehensive plan and covered almost all out-of-pocket costs, but it is no longer available to new Medicare beneficiaries who became eligible on or after January 1, 2020. The most comprehensive plan now available is Plan G, which covers all the same benefits as Plan F except for the Part B deductible. It is important to review all available Medicare Supplement plans and choose the one that best fits your specific healthcare needs and budget.
