Originally published June 3, 2013, last updated June 26, 2013

Understanding the Pros and Cons of Medicare Supplement

Medicare Supplement policies (also known as Medigap plans) help fill in the gaps in Original Medicare coverage such as co-pays and deductibles for hospitalization, doctor visits and other medical services. Although these plans may cost more than Medicare Advantage plans, after paying the plan premium, there are few if any extra out-of-pocket expenses.

Medicare Supplement Pros:

• Medicare Supplement helps fill in the gaps left by Medicare - With a Medicare Supplement plan; you can have that peace of mind to know that if something unexpected were to happen, you do not have to worry about any additional out-of-pocket or “surprise” expenses.
• No enrollment periods - You have the freedom to shop and compare Medicare Supplement plans at any time throughout the year.  Your enrollment periods are not limited and give you the ability to enroll into a plan when you see fit.
• During certain times, plans are guaranteed issue - Is your employer coverage ending and you’re outside of your open enrollment period? No problem! When losing employer coverage, you have a “guarantee issue” period which allows you to choose a Medicare Supplement plan without having to answer health questions. Also, if you are a New York resident, you have guarantee issue year round! Residents of California and Oregon can also enjoy a guaranteed issue period within the 30 days surrounding their birthday every year and WA has guarantee issue from “like plan to like plan” (e.g. plan F with one carrier to Plan F with another carrier would be a guarantee issue situation).
• No network requirements - Medicare Supplement plans give you the freedom to go to any doctor or hospital that takes Medicare anywhere in the U.S. If you travel, you can rest easy knowing that your plan is covering you no matter where you may be in the U.S.
• Allows you to make your out-of-pocket healthcare costs very predictable - Medicare Supplement plans allow you to choose a plan that will suit your needs. Each Medicare Supplement plan has very specific benefits that allow you to make a decision on whether or not you would like to have co-pays, deductibles, etc. This allows you to budget your expenses on a monthly basis. 

Cons:

• Like most insurance, it is subject to underwriting - If you are not in open enrollment or a “guarantee issue” situation, your Medicare supplement policy will be underwritten. If you have health issues, you may not qualify or be eligible to make a change in plans.
• Monthly premiums can be expensive on a fixed income - Depending on where you are living in the U.S., Medicare Supplement plans can sometimes be pricy.
• Premium Increases - Unfortunately, with a Medicare Supplement plan, your premium can start out at an affordable amount but can increase each year due to many factors.

Have questions about Medicare? Call a Licensed Benefit Advisor at Medicare MarketPlace: 1-866-312-3535.
Click here to get a Medicare Supplement quote.

Look for upcoming features about Travel Insurance and Social Security in future newsletters.