Supplemental insurance can provide several benefits to Medicare coverage. You even have a few options to choose from to find the level of coverage that feels comfortable for you. Here are some of the average costs to consider when shopping for your plan.
The Average Cost of Medicare Supplement Insurance: Broken Down by Age
Several factors impact a person’s Medicare Supplement Insurance rate. This includes where you live, when you enroll and whether you are eligible for any household discounts. One of the most impactful factors is your age. Here are some of the average costs of a Medicare Supplement plan based on age.
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What is Medicare Plan F?
Medicare Plan F (also known as Medigap Plan F) plans are the most popular Medigap plans. These plans cover all of the standard Medicare Supplement Insurance benefits. This includes:
- Medicare Part A coinsurance and hospital costs
- Medicare Part A hospice care coinsurance or copayment
- Medicare Part A deductible
- Medicare Part B coinsurance or copayment
- Medicare Part B excess charges
- Medicare Part B deductible
- First three pints of blood
- Coinsurance for a skilled nursing facility
- 80% of foreign travel emergency costs
To put this into context, it’s important to consider the coverage of Original Medicare (Parts A and B).
Medicare Part A is known as Medicare’s hospital insurance. There are some cost-sharing measures included in Part A plans. For example, inpatient stays covered by Medicare Part A require coinsurance fees if the stay exceeds 60 days. Hospice care also requires copayments under Medicare Part A. For example, there are $5 copayments for prescription drugs and a 5% coinsurance for Medicare-approved inpatient respite care. In these cases, Plan F will pay for those coinsurance fees and copayments.
Medicare Part A and Part B also require deductibles for each benefit period. Plan F covers the cost of both deductibles. Additionally, Plan F covers Medicare Part B excess charges. Excess charges happen when a doctor doesn’t accept Medicare reimbursement as payment in full for their services. Doctors are allowed to charge you up to 15% more than the Medicare-approved amount for their services. The excess charges are taken care of in full by Plan F.
Plan F offers other benefits of Plan F as well. If you need a blood transfusion, Original Medicare will only cover the fourth pint of blood and beyond. Plan F covers the cost of the first three pints of blood if you need it while you’re in the hospital. Original Medicare also requires you to pay coinsurance if you’re admitted for inpatient care at a skilled nursing facility for more than 20 days. After 100 days, Original Medicare leaves you fully responsible for all of the costs of inpatient care. Plan F covers skilled nursing facility coinsurance charges in full.
Traveling out of the country? You should know that Original Medicare typically does not provide coverage outside of the United States. Plan F will pay for 80% of your foreign travel emergency care costs after you’ve met a $250 deductible for the year.
People who are interested in Plan F can choose between a regular Plan F plan and a high-deductible Plan F. The high-deductible option can have lower premium costs but requires you to meet a yearly deductible of $2,490 (as of 2022) before the plan will cover anything. Unfortunately, neither Plan F option is available to Medicare beneficiaries who became eligible for Medicare after Jan. 1, 2020.
What is Medicare Plan G?
Medicare Plan G (also known as Medigap Plan G) is similar to Plan F. The difference is that Plan G does not cover the Medicare Plan B deductible. This plan has become more popular in recent years, especially after 2020 when Plan F was no longer available to newly eligible Medicare beneficiaries. As of 2022, Plan G is the Medigap plan that offers the most comprehensive coverage.
Like Plan F, you can purchase a regular Plan G or a high-deductible Plan G. The yearly deductible with the high-deductible Plan G is $2,940. If you choose this option, you must meet the deductible each year before your plan will cover anything.
What Are Your Medicare Supplement Deductibles?
Medicare Supplement plans — including Plan F and Plan G — can come with deductibles. If you choose a high-deductible Plan F or Plan G, your yearly deductible will be $2,490 for 2022. That deductible amount may change next year and in the following years. This deductible is the amount of out-of-pocket expenses you must pay before you receive benefits from your Medicare Supplement policy. Qualifying out-of-pocket expenses that count toward your deductible include copayments and coinsurance payments as well as Medicare Part A and Part B deductibles.
The benefit of a high-deductible plan is that it can lower your monthly premiums. However, it also carries more risk. If you don’t need to use your Medicare coverage often, you could end up saving money by having a high-deductible plan. However, if you do face medical issues, a high-deductible plan will leave you vulnerable to higher out-of-pocket costs before your policy coverage kicks in.
Medicare Supplement and Medigap Insurance policies may not be the same across all 50 states. In fact, in Massachusetts, Minnesota and Wisconsin, Medigap policies are standardized differently. You may find that Medigap plans in these states offer less coverage.
To determine whether a high-insurance plan or a regular plan is right for you, you’ll need to get quotes for multiple policies. You should consider your current health needs and how often you typically go to the doctor. Then, you can compare the premium of a regular plan with a high-deductible plan. Be sure not to let the premium be your only deciding factor. You’ll also need to consider the amount of money you’ll save on out-of-pocket costs by choosing a regular plan, even if it has a higher premium. Typically, if you rarely need medical treatment, a high-deductible plan may be the more cost-effective option for you. But for many people, the regular plan is preferable because it provides easier predictability of month-to-month medical costs because out-of-pocket costs won’t be a concern.
Compare Medicare Supplement Insurance Plans
Choosing the right Medicare Supplement Insurance plan is an important part of building your healthcare coverage. Benzinga is committed to providing up-to-date information on the best providers and policies available today. You can start by comparing these plans to find the best choice for your needs.
- Best For:Easy-to-understand coverageVIEW PROS & CONS:securely through Aetna Medicare Supplement's website
- Best For:Wide network of doctors, hospitals and specialists across the U.S.VIEW PROS & CONS:securely through Blue Cross Blue Shield Medicare Supplement's website
Frequently Asked Questions
Which 2 Medicare plans cannot be enrolled together?
You cannot have both a Medicare Advantage Plan (Part C) and a Medigap policy. In fact, it’s illegal for a company or insurance agent to try to sell you a Medigap policy if you currently have a Medicare Advantage Plan unless you’re switching back to Original Medicare. If you have a Medigap policy but want to join a Medicare Advantage Plan, you should drop your Medigap policy. Medigap policies cannot be used to cover the out-of-pocket costs of Medicare Advantage Plans.
Are Medigap and supplemental insurance the same thing?
Yes. Both Medigap and Medicare Supplemental Insurance are plans that are offered by private health insurance companies. These policies act as supplements to your Original Medicare (Part A and B) plans and can help pay for the out-of-pocket costs of Medicare.
About Ashley Hart
Ashley Hart is a personal finance writer passionate about helping people feel empowered to take control of their finances. She has more than eight years of writing experience, focused on insurance.