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Medicare Supplement Plan Options

Medicare is an American health insurance program used mainly by senior citizens. Original Medicare comes in two parts, called A and B, which offer mainly hospital and preventive care benefits. Part D covers prescription drugs, while Part C allows users to buy their A and B benefits from private insurance companies, who may offer extra benefits like vision or dental. Medicare is not free and requires deductibles, co-payments and coinsurance, so many beneficiaries purchase Medicare supplements, often called Medigap, which help them afford Medicare costs while also featuring even more benefits.

  1. Plan A

    • All insurance companies which sell Medicare supplements must sell Plan A, although it sometimes goes under a different name such as the Basic Plan. Medigap plans are standardized; the same plan offers the same benefits no matter which company sells them or where you live. The only exceptions are Minnesota, Wisconsin and Massachusetts, which are allowed to arrange their Medigap plans differently. Plan A is the least expensive plan which offers the fewest benefits. But Plan A does feature coinsurance coverage for hospital stays and the Medicare Part B co-pays, the reasonable costs of the first three pints of blood per year and an extra 365 days of hospital coverage after Medicare Part A's benefits end.

    Plans B, C, D and G

    • In 2011, Plan B has the same benefits as Plan A, with the addition of coverage of the Part A deductible. Plan C adds coverage of the Part B deductible and skilled nursing facility coverage as well. Plan D has Part A and Part B coinsurance, skilled nursing facility coverage and benefits for the Part A deducible but not the Part B deductible. It does, however, add coverage for medical emergencies which occur outside the U.S. Plan G has the same benefits as Plan D, along with coverage for the Part B excess charges.

    Plans K , L and M

    • Plans K, L and M are cost-sharing plans. This helps to keep monthly premium payments down, but will result in larger out-of-pocket costs for services. Plan K covers 100 percent of Part A coinsurance and 50 percent of the Part B co-pays, skilled nursing facility costs and the Part A deductible. Plan L coves the same benefits at 75 percent, except for Part A coinsurance, which is also covered at 100 percent. Plan M has the same benefits as Plans K and L, but only covers 50 percent of the Part A deductible. The other benefits are covered at 100 percent.

    Plan F

    • Plan F is a popular Medigap plan because it offers the most benefits. Plan F covers everything the other plans do, including foreign travel emergencies, but it is usually the most expensive. However, Plan F is available as a high-deductible plan. Users pay lower monthly premiums in exchange for meeting an annual deductible amount before benefits kick in. In 2011, the annual deductible for Plan F was $2,000.

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