A Medicare Supplement plan, also known as Medigap, is designed to help pay some of the out-of-pocket costs that Original Medicare does not fully cover.

Original Medicare includes:

• Part A for hospital services
• Part B for doctor visits and outpatient care

While Original Medicare provides important health coverage, you may still be responsible for certain expenses such as deductibles, copayments, and coinsurance. A Medicare Supplement plan can help reduce those costs and provide added financial protection.

How Does a Medicare Supplement Plan Work?

A Medicare Supplement plan works with Original Medicare, not in place of it.

When you receive covered services:

1. Original Medicare pays its share first
2. Your Medicare Supplement plan may then help pay its portion of eligible remaining costs, depending on the plan you choose

This can help make your healthcare expenses more predictable and may give you added peace of mind.

Why Do People Choose Medicare Supplement Plans?

Many people choose Medicare Supplement coverage because they want:

• help with out-of-pocket healthcare costs
• more predictable medical expenses
• the freedom to see providers who accept Medicare
• added protection from unexpected Medicare-approved costs

For those who prefer the flexibility of Original Medicare, a Medicare Supplement plan can be an effective way to strengthen overall coverage.

Common Medicare Supplement Plan Options

Some of the most well-known Medicare Supplement plans include Plan F, Plan G, and Plan N.

• Plan F offers very comprehensive coverage for those who are eligible
• Plan G is a popular choice for people who want strong coverage and limited out-of-pocket exposure
• Plan N may offer a lower premium in exchange for some cost-sharing on certain services

Because Medicare Supplement plans are standardized by plan letter, the basic benefits for a given plan type are generally the same regardless of the insurance company offering it. However, premiums, service, and value can vary.

Important Things to Know

• You must be enrolled in Medicare Part A and Part B
• Medicare Supplement plans work with Original Medicare
• These plans are different from Medicare Advantage plans
• Medicare Supplement plans generally do not include prescription drug coverage, so a separate Part D plan may be needed

Is a Medicare Supplement Plan Right for You?

A Medicare Supplement plan may be a good fit if you want help with healthcare costs that Original Medicare does not pay in full and value the flexibility that comes with staying on Original Medicare.

The right plan depends on your healthcare needs, budget, and personal preferences. Reviewing your options carefully can help you choose coverage that fits your situation.

A Medicare Supplement plan such as Plan F, Plan G, or Plan N can do an excellent job helping cover many of the out-of-pocket costs left behind by Original Medicare. These plans are designed to reduce exposure to deductibles, coinsurance, and other Medicare-approved medical expenses. However, even with strong coverage, there can still be financial gaps when a person experiences a hospital stay, cancer diagnosis, or other serious health event.

That is why pairing a hospital indemnity plan and/or a cancer indemnity plan with a Medicare Supplement plan can be a smart strategy.

A Medicare Supplement plan primarily helps with approved medical cost-sharing. It does not put cash in a member’s pocket for the many indirect costs that often come with illness. Things like travel, lodging for family members, groceries, household bills, lost income of a caregiver, and other everyday expenses can still create financial stress. This is where indemnity plans may help.

A hospital indemnity plan typically pays a cash benefit when a covered hospitalization occurs. That money can be used however the insured chooses. Even if the Medicare Supplement plan covers much of the medical bill, the cash benefit from a hospital indemnity plan can help handle related expenses outside traditional medical cost-sharing

Medicare Supplement Real World Examples

Example 1

A member with Medicare Supplement Plan G is admitted to the hospital for several days. Plan G may help cover the Medicare-approved hospital cost-sharing after the Part B deductible is met, but the member’s spouse still has to drive back and forth, buy meals away from home, and take time off work. A hospital indemnity plan may provide a cash benefit that can help offset those non-medical expenses.

A cancer indemnity plan can also add value because a cancer diagnosis often creates expenses that go beyond what Medicare and a supplement plan cover. Even with strong medical coverage, treatment may involve transportation, hotel stays for specialty care, home support, or other personal costs.

Example 2

A member with Medicare Supplement Plan N is diagnosed with cancer. Plan N helps with many Medicare-approved costs, but the member may still face doctor visit copays, possible Part B excess charges where applicable, and substantial non-medical expenses tied to treatment. A cancer indemnity plan can pay cash benefits directly to the insured, which may help with travel to a treatment center, help at home, or everyday bills during recovery.