Medicare Supplement vs Medicare Advantage
Ever wonder why you should get a Medicare Supplement? The answer is simple. A Medicare Supplement covers the gap between what Medicare pays and doesn’t pay. It allows you to see any doctor, use any provider of your preference, and does not come with any kind of network.
What’s the Difference between Original Medicare and Medicare Advantage?
A Medicare Advantage Plan is similar to a Health Maintenance Organization (HMO). They both have networks. Although Advantage Plans typically come with competitive premiums, you are restricted to the doctors inside of the network, unless you pick a PPO plan. Additionally, these networks can change from year to year.
With original Medicare parts A & B, plus a Medicare Supplement, you can go to whatever facility you would like.
It covers the difference between what Medicare cannot pay for services and supplies. Supplement plans are only good for medical: MRI, CT Scans, etc. This could include deductibles, copayments, or something like coinsurance. It covers the fees that you would normally have to pay out-of-pocket.
Medicare Supplements Plan F and Plan G
Some of the most popular Medicare Supplement Plans are F and G. These plans both have a very low monthly premium.
- Plan F covers everything that Medicare Supplements cover but is a little more per month.
- Plan G covers everything except for the Part B deductible, which estimates to $185 per year.
Both Plan F and Plan G are very popular. However, if you qualify, we think Plan G ends up being a better deal for our clients because they end up paying less. The only difference is that Plan G doesn’t cover the part B deductible, which is a very small cost per year.
Supplement High Deductible Plan F
For those who cannot afford a Medicare Supplement along with Medicare Part B, there is another option: High Deductible Plan F. Compared with a normal Plan F, it is very inexpensive and it comes with a yearly deductible. Moreover, the plan is the same as Plan F when it comes to the basic benefits that are offered. It is a good plan for those who pay a lot of out-of-pocket costs or have many doctor visits.
With this plan, you mitigate the risk of a large financial burden and replace that with a smaller yearly deductible that will make things more affordable.
Supplement Plans Leaving
We want to make sure that everyone is aware that there are certain Medicare Supplement plans that are leaving in 2019. In fact, your Medicare eligibility date impacts the coverage that you qualify for. If you are eligible for Medicare before 2020, then your options will be different than those of Americans who become eligible from January 1, 2020, on. Since Congress passed the Medicare Access and CHIP Reauthorization Act (MACRA) in 2015, the plans with no deductible, like Medicare Supplement (Medigap) Plans F and C, will no longer be available.
For the beneficiaries already enrolled in Medigap Plan F or Plan C, you can rest easy knowing that you’re grandfathered into your policy. However, it’s important to understand that after 2020, you may see a rate increase if you have one of these policies.
Medicare Eligibility Before and After 2020
Plans F, C, and High-Deductible Plan F are going away for new enrollees in 2020. However, Americans who are already on Medicare prior to 2020 should be able to select or switch from these plans at any time in the future.
So, if you are eligible for Medicare Parts A and B by December 2019, then you’ll be able to enroll in one of these plans at any time in 2020
If you would like to learn more make sure to read our article. Click here for more information.
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