How to Choose Medicare Supplement Plans?

But like any other insurance program, Medicare is also becoming more and more complex, and people often get confused how to choose the right Medicare Supplement plans Texas.

And it has to be. Medicare Supplement plans are of 10 types, and each plan is represented by a letter (A, B, C, D, F, G, K, L, M, and N) and offers a different level of healthcare coverage. Fortunately, the benefits of each plan within a lettered category are the same despite the location or insurance company. This means Plan F benefits are the same in Texas as they are in New Jersey. So it makes little easier to choose a Medicare Supplement plan. You only have to compare the benefits of ten types of Medicare Supplement plans.

So how to choose the right Medicare Supplement plan for you out of 10 standardized types? Let’s find out.

Here are four tips to pick the best Medicare Supplement plans in Texas for you:

1. Compare Plan coverage

Each plan has a different level of coverage. So, to choose the best policy, first, consider your health status and family medical history. It will help you figure out what to look for.

Medicare Supplement plan generally provides coverage for Part A coinsurance or copayments, Medicare Part B copayment, and Part A hospice care coinsurance. Some plans also provide Part A and Part B deductible and private skilled nursing facility. Compare the coverage of each plan using Medigap policies comparison chart. If you want maximum coverage, plan F is the best option. It covers almost all the gaps in Original Medicare but charges high monthly premium than other Medicare Supplement plans in Texas.

2. Monthly Premium of plan

There are three different methods of pricing premium of your Medigap policy: Community-rated, Issue-age rated, and attained-age rated.

Community-rated policies charge the same monthly premium to everyone who has a policy, regardless of age.

In Issue-age rated policies, the monthly premium is based on the age of Medicare beneficiary. For example, if you enroll at age 65, you will pay a lower premium than if you enroll at age 75. However, a further increase in the price of the policy depends on inflation.

In Attained-age policies, the premium is based on your current age but increases as you get older. Your monthly premium may start low but increase within a few years. You can expect the increase in the rate every year.

3. Out-of-pocket limit

If you want to put a cap on your out-of-pocket costs, choose a plan with a maximum out-of-pocket limit. Only plan K and L have a maximum out-of-pocket limit. Once you reached out-of-pocket maximum, your Medigap policy pays for 100% of your Medicare-covered costs.

4. Consult with an independent insurance agent

Once you know what you want, consult with an independent insurance agent. Unbiased expert input is always helpful in making the right decision. Also, Medicare Supplement plans have the same standardized benefits for each letter category and premium varies from company to company. Therefore, it is always in your best interest to contact an independent insurance agency before purchasing Medicare Supplement plans in Texas.

Some additional facts about Medicare Supplement Plans

• Medicare Supplement plan does not include Part D coverage. If you want Medicare prescription drug coverage (Part D coverage), you have to buy a stand-alone Part D plan. No Medicare Supplement plan provides prescription drug coverage to Medicare beneficiaries.

• A Medicare Supplement plan is different from Medicare advantage plan. You cannot buy Medicare Supplement plan with Medicare Advantage plan. It is illegal to sell a Medigap policy to Medicare beneficiary who has enrolled in Medicare Advantage plan.

• Unlike Medicare Advantage plans, Medicare Supplement plans cannot be used as a replacement for Original Medicare. You must have Original Medicare to avail the benefits of Medicare Supplement plans in Texas.

• A Medicare Supplement plan can cover only one person. If you spouse want Medigap coverage, he or she has to purchase a policy separately.

• Medicare Supplement plans in Texas is sold by private insurance companies approved by Medicare. You have to pay the monthly premium for your plan to a private company.