Some people who are covered by original Medicare purchase a separate Medi-gap plan, also known as a Medicare Supplement plan. These plans help “fill the gap” by partially or fully covering the portion of approved healthcare expenses that original Medicare doesn’t pay.
What is the advantage of a Medicare Supplement plan?
A Medicare Supplement or Medi-gap plan offers the beneficiary more flexibility, but at a higher premium. Available plans range from letters A to F, and each type of plan offers a different level of benefits or coverage. So you can choose the plan that best fits your needs and budget.
The Medicare Supplement works hand-in-hand with Medicare, which only pays the first 80% of Medicare-approved healthcare costs. Depending on which plan you choose, the Supplement will pay all or part of the remaining 20%. These plans have little to no copayments and no required network of health care facilities, doctors, and other healthcare professionals. You have access to any hospital or physician that accepts Medicare in any state.
Medicare Supplements do not include prescription drug coverage, so Part D needs to be picked up in a separate plan. Part D refers to the stand-alone prescription drug plan. These plans are based on different formularies (lists of covered medications) and have different premiums and copayments. Some plans have deductibles and some don’t. Medications are broken up into different tiers or levels including preferred and non-preferred generic and brand-name drugs. All plans are based on CMS (Medicare) guidelines and have the same initial coverage stage. There is a penalty for not having a creditable prescription drug plan during the correct time frame.
It’s complicated! Let Relion Insurance Solutions help you navigate through all of the literature you are receiving and narrow down the perfect Medicare plan for you.