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North Carolina Medicare Supplements

Medicare supplements are a type of health insurance. Supplements cover the "gaps" in Medicare: copays, deductibles and coinsurance. Medicare supplement plans are standardized by the federal government, and each plan is represented by a letter. This means that a plan F offered by one company will cover the exact same things as a plan F offered by another company. The main difference from company to company is with price and quality. North Carolina residents have a number of options to choose from when it comes to North Carolina Medicare supplements.

  1. How North Carolina Medicare Supplements Work

    • Medicare itself is made up of two parts: Part A and Part B. Part A covers a significant portion of hospital costs after you've paid the $1,000 or more deductible. Part B covers 80 percent of physician services, after you've covered the initial $150 or more deductible. The other 20 percent is your responsibility. North Carolina Medicare supplements help cover these out-of-pocket costs. Most plans cover them entirely. Some plans cover a percentage of your costs, but have a lower premium.

    Differences Between Plans

    • As of 2011, there are 10 Medicare supplement plans offered in North Carolina. Plan A covers the Part A coinsurance, Part B coinsurance (not the deductible), Part A hospice coinsurance or copayment and the first three pints of blood you receive if hospitalized. Plan B covers what Plan A covers, plus the Part A deductible. Plan C covers all Medicare-approved out-of-pocket costs except any Part B excess charges. Excess charges are a percentage of the difference between what a doctor charges and the Medicare approved amount. Plan D does not cover excess charges or the Part B deductible. Plan F covers all approved out-of-pocket costs. Plan G does not cover the Part B deductible. Plans K, L, M and N are all cost-sharing plans with lower premiums than the other plans. Not every company offers every plan.

    North Carolina Medicare Supplement Rates

    • There were more than 30 companies approved to sell Medicare supplement plans in North Carolina in 2010. One of the main differences between them is how they set their rates. Companies set their insurance rates in three different ways. One is attained age. Attained age means the price of the policy is based on your age; in other words, it will get more expensive as you get older. Community rated, also known as no-age rated, offers the same price to everybody who is enrolled. The rates are likely to increase, but the increase will be due to inflation, not age. Issue-age rated is based on the age you were when you first purchased the policy.

    Where to Find Help

    • North Carolina residents have a resource available to help navigate the often confusing Medicare system. SHIIP (Seniors Health Insurance Information Program) is offered through North Carolina's Department of Insurance. There are volunteers available to answer questions, and their website offers a wealth of information, including a tool you can use to look up what companies offer the plans you're interested in (see Resources).

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