Medicare supplement plans

Do I Need A Medicare Supplement Plan?

Author: AB Staff

Do I Need A Medicare Supplement Plan?

Editor's Pick Wellness

Having a Medicare Plan is a surefire way to enter your retirement years. Yet, and depending on your circumstances, a Medicare Insurance Policy may not be enough to provide a strong safety net when it comes to managing your finances.

Primarily because of the “gaps” (out-of-pocket health care costs, such as coinsurance charges, co-payments, and deductibles) in these plans, some beneficiaries may struggle to pay for various medical bills.

Here are the different types of Medicare Supplemental Insurance Plans (also called Medigap) and how they can help you.

1) The Power to Choose

There are ten standardized Medigap Plans to choose from varying in coverage scope and premium rates.

The standardized Medigap policies, Plan A – Plan N (E, H. I, and J were discontinued) all offer these basic set of benefits:

  • Coverage for Medicare Part A coinsurance fees
  • Coverage for Medicare Part A copayments (hospice care)
  • Coverage for Medicare Part B coinsurance fees or copayments
  • Coverage for the first three pints of blood in a calendar year

Additionally, private insurance policies sell Medicare Supplemental Insurance Plans. This means that you can – and should – shop around the market to compare Medigap premium rates among different agents.

With so many options to choose from, Medigap insurance plans can support your needs.

2) Secure Your Nest Egg

Medicare Supplements are designed to offer a wider range of health coverage needs than Original Medicare Plans.

An original Medicare Plan, which is made up of Medicare Part A and Part B, deals with hospital insurance, doctor visits, preventive service, and durable medical equipment. However, the gaps in addition to the Part B monthly premium may burn a hole in your pocket, especially if you have a chronic health condition.

Medigap plans help downsize the cost burden by directly addressing the gaps in Original Medicare Plans. This leads to a more practical take on retirement health and wealth security.

A good example where you would see a decrease in cost is medical supplies. Under Medicare Part B, 80% of the total costs would be covered. However, you would be responsible for the remaining 20%. If you had a Medicare Supplement plan, that 20% would be covered completely (or partly depending on the plan).

According to a recent Commonwealth Fund report: 15 million Medicare beneficiaries spent 20% of their household income on insurance premiums and out-of-pocket health care costs last year! Think of what you can use that amount for instead.

3) Flexible Solutions

Medigap plans can do so much more for you:

Medicare Supplement Open Enrollment Period

Buying a Medigap plan during the Open Enrollment Period (OEP) will maximize one’s savings. The OEP, a 6-month period that begins when you turn 65 and are enrolled in Original Medicare, will allow you to purchase a plan even if you currently have a health problem. Also, private insurance companies cannot charge your higher premium rates during the OEP, nor can they delay the start of your coverage.

Foreign Travel Coverage

If you have plans to travel, some Medigap plans offer foreign travel coverage as an additional benefit. With this benefit, medical expenses outside the country are covered.

Medicare Supplement plans will help you have a more comfortable future by addressing both your health and financial needs.

What Medicare Supplement plan do you have? Which one do you think has the best benefits? Share your advice on our community forum! Request a free Medicare supplement quote online today and set your plans into motion.

Written by: Leandro Mueller
As the Online Content Director of, Leandro Mueller aims to push for awareness of the many benefits of Medigap insurance plans in the market. He hopes that his work will help boomers and retirement industry experts alike in their lives.

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