How to Find the Most Affordable Medicare Supplement Plans

Posted by on Dec 5, 2019

The Original Medicare (Part A and Part B) plan doesn’t cover some healthcare costs such as copayments, coinsurance, and deductibles. To cover these gaps in medical insurance coverage, you can get Medicare Supplement Insurance plans from private medical insurance companies. Here’s how to find the most affordable ones:

Find out about monthly premiums

Different insurance carriers will require different monthly premiums, depending on your age, gender, and location. For instance, in the Issue-Age pricing method, the company will base their premium on what your age was when you bought the Medicare Supplement plan. In the Attained-Age pricing method, the company will factor in your age at the time of purchase and increase the premium amount as you get older.

With the Community-Rating pricing method, the premium you pay is dependent on where you live. So, if you get Medicare Supplement Plans Texas, you might have different fees than what you would pay in Florida.

Review the Letter Plans

Compare the benefits and coverage that you can get from the ten-letter Medical Supplement plans. As they back up the 80% Medicare coverage, you may have to pay almost no out-of-pocket expenses. Plan G, Plan N, Plan C, and Plan D are currently the most affordable Medicare Supplement plans, but things are changing in 2020.

As part of the comprehensive changes in Medicare, Plan C, and two other first-dollar coverage plans that cost you zero out-of-pocket payments, Plan F and High Deductible Plan F will be no longer be available after Jan. 1, 2020. So, if you become eligible for Medicare after this date, you will not be able to avail of these plans. However, if you turn 65 before January 2020, or if you already have the first-dollar coverage plans, you can continue with them.

Let’s consider some of the most affordable Medicare Supplement plans still available in 2020.

Plan G

With Plan G, you are covered for 20% of the copayments and coinsurance, and also for the Part A deductible.  You don’t have to pay for this deductible annually. It is based on how many times you are admitted to a hospital during the year. So, if you are a hospital in-patient twice in a year, you will only have to pay twice for the deductible.

If you are going abroad, Plan G will provide coverage for any medical emergencies and excess charges; these excess charges are levied if the medical provider charges more than the approved Medicare fee. This is a useful insurance plan if you are seeking a full insurance coverage policy with relatively lower premiums. If you get Plan G, you only have to pay for the Part B deductible annually and don’t have to pay for any of the Medicare-covered services.

Plan N

Plan N is similar to Plan G when it comes to coverage for the Part A deductible, 20% of what Medicare doesn’t cover, and medical emergencies when you are abroad. You can get up to $20 and $50 copayment for visiting a doctor’s office and an emergency room, respectively. However, the plan doesn’t cover copayment if you end up being admitted into a hospital. It also doesn’t cover excess charges.

You should consider getting Plan N if you want lower premiums and don’t mind too much about copayments and excess charges. Regarding the latter, it is important to note that you may not encounter them too often. Only about 3% of U.S.-based medical providers ask for excess charges, and in many of the states, they are not legally permitted to do so.

Plan D

You will get reliable support with this plan after your traditional Medicare plan ends. Plan D will then offer you coverage for the Part A hospital care and coinsurance costs for up to a year. It will also cover the costs for the Part A hospice care and coinsurance and for the Part B copayments and coinsurance. Additionally, it covers medical emergencies during foreign travels and coinsurance for care in a skilled nurse facility.

Plan D, however, doesn’t offer coverage for the Part B deductible and any excess charges.You should also check out the new High Deductible Plan G that will be available after Jan. 1 2020.