Medicare Supplement plans are meant to help cover some of the out-of-pocket costs associated with Original Medicare such as deductibles and copayments. They are also known as Medigap. If you purchase a Medicare Supplement plan, Medicare will cover its share of the expenses first, while the Medicare Supplement plan will cover the remaining expenses after. To qualify for Medicare Supplement plans, you must have Medicare Part A and Part B.
If you already have Medicaid or Medicare Advantage coverage, you cannot get a Medicare Supplement.
Medicare Supplement Plan Coverage
There are 10 standardized Medicare Supplement plans available in most states. They are lettered from Plan A to Plan N, though some plans are no longer available to new beneficiaries. Regardless of the insurance company, each plan should offer the same basic benefits.
People who became eligible on January 1, 2020, or after are not able to purchase a Medigap plan that helps with Part B deductibles, such as Medicare Supplement Plan C and Plan F. However, people who already have the plans are allowed to hold the policy.
Medigap plans cover some out-of-pocket costs for Medicare Part A, such as copayments, coinsurance, and extended hospital stays. All Medicare Supplement plans also cover some Part B costs such as copayments, coinsurance, deductibles, and excess charges.
Though Medicare Supplement plans have standardized benefits, the price of each plan varies depending on the insurance company. There are three ways through which insurance companies fix the price for Medicare Supplement plans. It could be community-rated, issue-age rated, or attained-age rated. In community-rated policies, the price is fixed regardless of age or sex. Most beneficiaries will pay the same rate unless the price goes up due to the economy.
In issue-age rated systems, the price of the Medigap premium is based on the enrollee’s age when they registered. The younger they are, the less the premium. However, the premium may increase as the beneficiary gets older due to inflation.
In attained-age rated premiums, the premium increases as the person gets older. The rate is lower for young people but increases as they age.
Eligibility and Enrollment
You become eligible to enroll in a Medicare Supplement plan when you turn 65 and are enrolled in Part A and B. This is known as the Medicare Supplement Open Enrollment Period. During this period, there is a guaranteed right to purchase the plan. However, if you decide to enroll later, an insurance provider may deny your application based on your health.
Buying a Medicare Supplement plan requires time and effort to get the most suitable plan for you. That’s why we’re here to help! Give us a call today to learn more about your Medigap options in Oregon.