Medicare Supplement
Medicare Parts A & B do not cover 100% of Medicare covered services, have significant cost sharing and have no limit on one’s out-of-pocket cost. It is for this reason that pairing a Medicare Supplement with Medicare Parts A & B can substantially reduce your out-of-pocket expenses. Medicare Supplement plans, also known as Medigap plans, supplement and fill in the gaps that Medicare has. A properly designed Medicare Supplement will leave you with only $257 in of out-of-pocket costs for Medicare covered services.
In order to enroll in a Medicare Supplement plan you must be enrolled in both Medicare Parts A and B. Medicare Supplements are offered by private insurance companies. The Centers of Medicare & Medicaid Services (CMS) and the National Association of
Insurance Commissioners (NAIC) in a joint publication titled 2022 Choosing a Medigap Policy: A Guide to Health Insurance for People with Medicare states on page 9 “Each standardized Medigap policy must offer the same basic benefits no matter which insurance company sells it. Cost is usually the only difference …”
This means all Medicare Supplement plans must cover the exact same benefits, regardless of which company sells it. All Medicare Supplements are identical when it comes to their basic benefits. So, when selecting a policy, it really comes down to cost, the financial strength of the insurance company and the years they have been in business, as this may impact any future premium increases. The only difference between these policies are valued added programs such as Silver Sneakers (health club membership) and discount programs.