Medicare Supplement insurance plans (also known as Medigap plans) are offered by private insurance companies to help pay some of the out-of-pocket costs that Original Medicare (which includes Part A and Part B) doesn't pay. Some plans pay most of your out-of-pocket costs, but have a higher monthly premium. Other plans pay fewer out-of-pocket costs, but have a lower monthly premium. Benefits and costs vary depending on the plan chosen.
No. A Medicare Supplement insurance plan works with Original Medicare, which includes Part A and Part B. It helps cover some of the out-of-pocket health care costs that Original Medicare doesn't pay for. For instance, Medicare Part B generally covers about 80% of Part B expenses. You're responsible for paying the rest. A Medicare Supplement insurance plan could help pay your share.
Your costs can include the following:
Monthly Premium
This is the fee you pay to the plan in exchange for coverage. Each Medicare Supplement insurance plan has a different monthly premium.
Deductible
This is the amount you pay out-of-pocket for covered services before Medicare and/or your Medicare Supplement plan begins to pay. It's a pre-set, fixed cost. Most Medicare Supplement plans provide coverage for your Medicare Part A hospital deductible. In most cases, you're responsible for your Medicare Part B deductible.
Copay/Coinsurance
These are kinds of cost sharing. A copay is a set, flat amount paid each time, such as a $20 copay for each in-office doctor visit. Coinsurance requires you to pay a percentage of the Medicare-approved amount each time.
Out-of-Pocket Limit/Maximum
This is a maximum amount of out-of-pocket costs you pay per calendar year. Since Medicare Parts A & B don't have an out-of-pocket maximum, your out-of-pocket medical expenses could add up to hundreds or thousands per year. Medicare Supplement plans are designed to help cover some of these costs.
Your health needs and budget will help you decide which Medicare Supplement plan might be best for you.
Prefer to have more coverage and less out-of-pocket expenses?
If yes, then plans G, C6, or F6 may be right for you. These plans typically have a higher premium and offer the most supplemental coverage, paying up to 100% of your out-of-pocket costs for many Medicare-approved services (depending on the plan).
Prefer to have a lower monthly premium with out-of-pocket expenses based on your needs?
If yes, then explore other Medicare Supplement plan options that may be right for you.
You can apply for a Medicare Supplement insurance plan any time during the year.7 The best time to enroll is during your Open Enrollment period. The Medicare Supplement Open Enrollment period is the six-month period that starts the first day of the month in which you are age 65 or older and enrolled in Medicare Part B. Some states may have additional open enrollment periods, including those for people under 65, and there may be other situations in which your acceptance may be guaranteed.
There are two different ways to apply for a plan: online or by phone. Choose the option that works for you.
Online
You can apply for an AARP Medicare Supplement Plan online. It's easy, secure, and available anytime. To begin, enter your ZIP code.