Medicare Part A and Part B can help cover many medical services. However, Part B only covers 80% of your outpatient services, meaning you are responsible for the remaining 20%. That’s where Medicare Supplement plans come in.

Supplement plans, also known as Medigap plans, are secondary to Medicare and help cover your portion of cost-sharing with Medicare, including deductibles, copayments, and coinsurance. They help cover that 20%, so you don’t have to pay for everything. If you’re looking for comprehensive and flexible coverage, you may consider signing up for a Medigap plan. Here are six things to know about Medicare Supplements.

Supplement plans are standardized

Private insurance carriers are the ones that offer Medigap plans, not Medicare. However, these plans are standardized. In other words, each type of Medigap plan is the same no matter which carrier you choose.

For example, the benefits you receive with a Medigap Plan G through United Healthcare will offer the same benefits as a Plan G with Blue Cross Blue Shield. So, if you’re trying to decide which carrier to go with, consider each company’s rates: boomerbenefits.com/top-10-medicare-supplement-companies/

There is no annual election period

When you first enroll in Part B, you qualify for a Medigap Open Enrollment Period 6 months from your Part B effective date. During this period, you can enroll in any Medigap plan without having to answer health questions or pass underwriting.

However, once your Medigap Open Enrollment Period is gone, it’s gone for good and unlike Medicare Advantage plans and Part D plans, Medigap plans do not have an annual election period. You can still apply to change Medigap plans at any time of the year, but you will likely have to pass underwriting and be accepted by a carrier. Some states have exceptions to this rule, so this will also depend on where you live.

You must have Medicare Part A and Part B

You may be wondering if there are any eligibility requirements to have a Medigap plan. The only real requirement is you must have Medicare Part A and Part B to purchase a Medigap plan. Without Part A and Part B, you are not eligible.

Additionally, if you are under 65, you may not have access to all the Medigap plans, making it challenging to find the Medigap plan you want. Medigap plans can also be more expensive if you’re under 65.

Supplement plans only pay if Medicare does

When you enroll in a Medigap plan, that plan is secondary to Medicare. This means Medicare pays first, and your Medigap plan pays second. However, Medicare will only pay for medically necessary services they approve of that meet their guidelines. If Medicare does not approve a medical service, it will not pay, meaning your Medigap plan will not pay either.

Supplement plans do not cover drug prescription medications

You may be thinking that Medigap plans cover medications as well, but that is not true. Medigap plans help cover your portion of cost-sharing with Medicare, including copayments, deductibles, and coinsurance, but not medications. To have coverage for your drug prescription medications, you will need to sign up for a Medicare Part D plan.

Also, keep in mind that Medigap plans do not cover all medical services, including dental, vision, and hearing benefits.

You can use supplement plans nationwide

Unlike Medicare Advantage plans, Medigap plans are not limited to specific network areas. You can see any provider in the U.S. as long as they accept Medicare, including any U.S. territories like Puerto Rico and the U.S. Virgin Islands.

Final Thoughts

Although supplemental coverage is optional, without it, you would be responsible for 20% of your outpatient costs, hospital copays, deductibles, coinsurance, and more. Medigap plans can be a great way to help cover these costs, so it’s good to understand how these plans work.