Cost of Medicare supplement plans in 2023 for many seniors nearing age 65, understanding Medicare and all of its pieces can be a difficult task, but it could be easier than you think. There are two parts to original Medicare, which are Medicare Part A and Medicare Part B. Medicare Part A covers the hospital portion, skilled nursing facility and hospice fees, and is normally premium-free. Medicare Part B covers medical and preventive services, as well as some DME (durable medical equipment), for which there is a monthly premium which is typically deducted from your Social Security payments. If you are not collecting Social Security, you will be billed on a monthly basis for your monthly Part B premium.
In addition to Original Medicare, many people will choose to purchase a Medicare Supplement plan to cover services like routine hearing, eye exams and other costs not covered by Parts A and B. Here’s what you need to know about Medicare Supplement plans.
Are you confused about your Medicare Supplement Insurance Options?
A great approach is to find a committed, licensed agent who works to understand your coverage needs and find you the best Medicare option for your specific situation.
What Is a Medicare Supplement Plan?
Medicare Supplement plans are at times called Medigap plans because they help fill the coverage gaps left by Medicare Part A and Medicare Part B. You must enroll in Original Medicare Parts A and B to purchase a Medicare supplement insurance plan. Most Medigap plans cover some or all the 20% not covered by Parts A and B.
Medicare Supplement Plans are sold through private insurance companies. Each plan is required by the Centers for Medicare & Medicaid Services or CMS to provide the same benefits nationally however, premiums can vary from provider to provider. All policies are meant as individual policies only, so if you and your spouse need a Medicare Supplement Plan, you must each purchase one separately.
What Do Medicare Supplement Plans Cover?
Medigap plans cover all or some of the following costs, with a few exceptions:
- Medicare Part A coinsurance and hospital costs up to an additional 365 days after Medicare benefits are exhausted
- Medicare Part B coinsurance or copayment
- Blood (first three pints)
- Medicare Part A hospice care coinsurance or copayment
- Skilled nursing facility care coinsurance (Plans A and B do not cover)
- Medicare Part A deductible (Plan A does not cover)
- Medicare Part B deductible
- Medicare Part B excess charge (coverage only available in Medigap Plans F and G)
- Foreign travel exchange (coverage not available in Medigap Plans A, B, K and L)
- Medigap Plans K and L pay 100% of covered services for the rest of the calendar year after meeting the out-of-pocket limit and paying your Medicare Part B deductible.
Medicare Supplement plans typically will not cover the following services:
- Dental
- Hearing aids
- Vision
- Long-term care
- Private-duty nursing
There are 10 standardized Medicare Supplement plans with letter names A through N which are offered by private insurance companies. Click here if you would like a free quote for a Medicare Supplement Plan
What are some of the average costs of a Medicare Supplement Plan
The costs of Medicare Supplement plans vary by state and by insurance company. The main factors that determine cost are the location and age of the retiree. Keep in mind that a policy that looks less expensive at age 65 could become the costliest at age 85, so ask the insurance company how they set their premium pricing.
Policy prices are determined in three ways:
- Community-rated: The same monthly premium is charged to everyone who has the Medigap policy, regardless of age.
- Issue age-rated: The premium is based on your age at the time of the Medigap policy purchase. The younger your age, the lower the premium. The premium costs for this type of rating won’t go up due to your age but may increase because of inflation or other factors.
- Attained age-rated: The premium is based on your current age and will increase as you get older. Though premiums in this form of rating may start at the lowest price, they have the potential to reach the highest price eventually and can also be impacted by inflation and other factors.
Not all companies offer all Medigap plans. Rates may vary depending on the company, and some plans may be provided with a high-deductible option.
Need help finding the Medicare Supplement Insurance options that work best for you?
Find committed, licensed agents who work to understand your coverage needs and find you the best Medicare option.
Click Here for A Free Medicare Supplement Quote
Who Is Eligible for Medicare Supplement Plans?
People ages 65 and older who have already enrolled in Medicare Part B are eligible to purchase a Medicare Supplement (Medigap) plan. In some cases, Medigap plans may be available to customers under the age of 65 if they have qualifying disabilities.
Who Should Purchase a Medicare Supplement Plan?
We believe that anyone concerned about cost of Medicare Supplement plans 2023 alone should consider the purchase of a Medicare Supplement plan. A Medicare Supplement Plan will cover the costs that Medicare does not cover leaving you with very little out of pocket.
Consider the following when purchasing a Medicare Supplement plan.
- You must enroll in Original Medicare Parts A and B, to be able to purchase a Medicare Supplement plan.
- A Medicare Supplement plan is not the same as a Medicare Advantage plan. Medicare Advantage plans offer Medicare benefits, follow Medicare rules and typically include drug coverage, while Medicare Supplemental plans are meant to fill the gaps in what your Medicare Part A and Parts B plan does not already cover.
- Premiums are paid to the insurance company, which would be in addition to the Medicare Part B premium paid to Medicare.
- Medicare Supplement Premium costs vary by state, but all plan benefits are the same nationally.
- All Medicare Supplement Plans are Guaranteed Renewable for Life.
- A Medicare Supplement plan does not include prescription drug coverage. If you should need prescription drug coverage, you will want to enroll in a Medicare Part D plan. Part D is offered by some private insurance companies and will require separate payments even though it may be the same company for both the Supplement and Part D plan.
What is the Medicare Supplement Plan Open Enrollment?
Medicare Supplement open enrollment begins the first month you’re insured by Medicare Part B and at least 65 years old. In some cases, younger people may qualify if they have certain disabilities. This open enrollment period lasts six months, during which you may purchase any Medicare Supplement plan available in your state. After this initial Medicare Supplement open enrollment period ends, you may not be able to purchase a Medicare Supplement plan, and if you are, it may be more expensive based on your health status.
By Joe DeAngelis
We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer. Please contact 1-800-Medicare to get information on all of your options.