Medicare supplement insurance, also called Medigap, helps cover
out-of-pocket costs left behind from Medicare Plan A and Plan B. Most
states have ten types of Medicare Supplement plans, with each assigned a
different letter that corresponds to the benefits.
Most states standardize Medicare Supplement Insurance plans and
have the same benefits for each program. Therefore, a specific letter
plan will have the same primary benefits as the same letter plan that is
sold in a different state. For the most part, the cost of the premium is
the most significant differentiator.
Unlike the rest of the country, states such as Massachusetts,
Minnesota, and Wisconsin standardize their Medicare Supplement plans
differently. Other than this difference, each state must sell Medicare
Supplement policies that include Plan A. Likewise, insurance providers
that sell Medicare Supplement must also sell Plan C or Plan F along with
their other policies.
Most States cover ten Medicare letter plans. Here’s a quick breakdown
of the first four Medicare plans.
Medicare Plan A
- This policy covers hospital-related care.
Medicare Plan B
This policy covers essential services, medically necessary
supplies, and preventative care.
Medicare Plan C
This policy provides additional benefits not covered by Original
Medicare Plan D
- This policy cover prescription drugs.