Medicare enrollees can be quite surprised by the amount of out-of-pocket (OOP) costs they’re confronted with when only enrolled in Parts A and B, especially when these costs go up every year. For example, inpatient hospital deductible costs for those enrolled in Part A increased from $1,676 last year to $1,736 this year. Add to that coinsurance, copays, and premium costs, which also increase each year, and this can be cause for concern. However, it is helpful to know what a medicare supplement plan is and how it can help offset these costs.
What benefits do Medicare Supplement plans offer?
Medicare supplement plans can minimize OOP costs associated with Medicare enrollment. Here are some specific costs that Medicare supplement plans can help with.
Part A
Without a supplement plan and before Original Medicare begins paying, you’ll have to pay a $1,736 deductible. After you pay the deductible, your inpatient hospital stay costs will be:
- $0 from days 1 to 60.
- $434 each day from days 61 to 90
- $868 from days 91 to 150
- All of the costs after day 150
For skilled nursing facility stays, you’ll pay $0 from days 1 to 20, $217 each day from days 21 to 100, and you’ll pay all of the costs every day after day 101. There are also some coinsurance costs for home health and hospice care.
Part B
Depending on your income, the premium you’ll pay can range from $202.90 to $689.90. The deductible before Original Medicare begins paying for Part B services is $283. You are also responsible for 20% coinsurance payments for:
- General costs for services
- Medical equipment used during home health care
- Doctor services while receiving inpatient hospital care or partial hospitalization mental health care
- Outpatient hospital care or mental health care
In addition to these coinsurance costs, you may have to pay an additional amount to the hospital for outpatient mental health care or copays for each service you receive in a hospital outpatient setting.
Compare the best Medicare Supplement plans in Florida
Here is a breakdown of two of the most common Medicare supplement plans and why most Medicare enrollees find these helpful.
Plan G
This plan is best for those who need medical attention often. The plan helps with:
- 100% of Part A coinsurance and hospital costs up to an additional 365 days after Medicare benefits are used.
- 100% Part B coinsurance or copayment
- 100% Part A hospice care coinsurance or copayment
- 100% skilled nursing facility care coinsurance
- 100% Part A deductible
- 100% Part B excess charge
- 80% Foreign travel emergency
- Out of pocket limit is not applicable
The plan does not cover the Part B deductible. Although there are higher monthly premiums associated with this plan, there are fewer and more predictable OOP costs.
Plan N
This plan is more beneficial for those who need medical attention less often and want lower premiums for the same coverage as Plan G offers. However, the tradeoff for lower premiums is more OOP costs, such as copays for doctor and emergency room visits.
What do Medicare Supplement plans cover?
Although medicare supplement plans help pay your share of OOP costs, they do not offer coverage for services such as:
- Prescriptions drugs, which you can get through Part D
- Dental
- Vision
- Hearing
- Long-term nursing home care
For services that aren’t covered under Medicare Parts A, B, or D, you may want to consider Medicare Advantage plans.
Questions? We’re here to help
We understand that it may be a difficult process to settle on a Medicare supplement plan because there are many plans with different criteria available to Medicare enrollees. Contact us so we can help you find the plan that fits your needs and budget.