What Are Medicare Supplements
Basics of Medicare Supplements
Medicare covers many things, but there are certain out-of-pocket expenses that the patient is required to pay. Medicare supplement plans are a solution to decrease those out-of-pocket expenses. These policies, also called Medigap policies, are coverage options provided by private insurers. Read on to learn more about Medicare supplement plans.
How Medicare Supplement Plans Work
To enroll in a Medigap policy, you have to first enroll in Medicare Parts A and B. You then find a policy and company that works best for you. While each company can offer different rates, these companies have to abide by the templates set by the Centers for Medicare and Medicaid Services (CMS). There are ten different Medigap templates with two additional special options.
- Plan A
- Plan B
- Plan C
- Plan D
- Plan F
- Plan G
- Plan K
- Plan L
- Plan M
- Plan N
When you enroll in the policy, you pick one of the templates above and a company that offers a competitive rate for that plan in your area. You are expected to pay a monthly premium for the year. Medicare works as it normally would, but you do not have to pay the out-of-pocket costs that you normally would. Instead, the Medigap policy pays for them.
Using an Insurance Agent
Medicare supplement plans can be confusing. There are many private different companies that offer different varieties of the same ten templates set by CMS. Understanding which template is best for you and which company has the best reputation can be difficult. This is where an agent comes in.
An insurance broker is an independent contractor that works to find you the best plan type and company for you. They can help you determine your needs, your budget, and the best deal in your area. They are paid by each insurance company, so they have no incentive to sell one plan over the other.
