Best Medicare Supplements in 2022 – Transitioning into the federal Medicare program in 2022? You probably want to know what your best options for healthcare coverage are. While you can’t go wrong with any Medicare supplement plan, there are three that garner the most attention due to their comprehensive coverage.
Medicare Supplement Plan F
Plan F has historically been known as the Cadillac of Medicare supplements. The reason for the title is that Plan F offered the most benefits of any Medigap plan. If you had Plan F, you had virtually no out-of-pocket medical expenses. Plan F picked up the costs that were leftover by Original Medicare, Parts A, and B.
Plan F covers:
- Part A deductible ($1,556 per benefit period in 2022)
- Part A coinsurance and hospital costs, plus an additional 365 days
- Part A hospice coinsurance
- Skilled nursing facility care coinsurance
- Part B deductible ($233 per year in 2022)
- Part B excess charges
- Part B coinsurance/copayments
- 3 pints of blood
- 80% of foreign travel emergencies
However, there are a couple of problems with Plan F. First, not all Medicare beneficiaries are eligible to enroll in Plan F. You must have turned 65 before the year 2020 to be eligible for Plan F. Second, Plan F has some of the highest monthly premiums. That should be expected since it has the most coverage, but we’re also seeing Plan F rates increase faster than other plans. Over the last several years, about every Plan F premium has increased 5% – 6% each year. This has made the plan become unaffordable for many people.
Individuals who want the benefits of Plan F but would like a lower premium should consider high-deductible Plan F. The premiums are a fraction compared to its traditional counterpart, but enrollees must pay a deductible of $2,490.
Medicare Supplement Plan G
For those who aren’t eligible for Plan F, Plan G is a great alternative. It’s the new Cadillac in town, in fact. Enrollment is not closed off to any certain ages, and it’s nearly identical in benefits to Plan F.
Plan G covers:
- Part A deductible ($1,556 per benefit period in 2022)
- Part A coinsurance and hospital costs, plus an additional 365 days
- Part A hospice coinsurance
- Skilled nursing facility care coinsurance
- Part B excess charges
- Part B coinsurance/copayments
- 3 pints of blood
- 80% of foreign travel emergencies
Spot the difference? The one difference in coverage is that Plan G does not pay the Medicare Part B deductible. However, we’re not convinced that’s such a disadvantage at this point. Premiums for Plan G are generally lower than Plan F. The lower premiums often make up for the $233 difference in coverage. Plan G also has a high-deductible option.
Medicare Supplement Plan N
Third on our list is Medigap Plan N. It has fewer benefits than Plans F and G, but it might just offer the best value. It’s certainly one to consider if you’d like a Medicare supplement insurance plan.
Plan N covers:
- Part A deductible ($1,556 per benefit period in 2022)
- Part A coinsurance and hospital costs, plus an additional 365 days
- Part A hospice coinsurance
- Skilled nursing facility care coinsurance
- Part B coinsurance/copayments
- 3 pints of blood
- 80% of foreign travel emergencies
One difference between Plan N and Plan G is that Plan N does not include coverage for any Part B excess charges. An excess charge is an amount over and above the Medicare-approved amount. If a provider does not accept Medicare assignment, they are allowed to charge an additional 15% on top of the Medicare-approved fee. That 15% is called the excess charge.
But is that lack in coverage a disadvantage? Well over 90% of all healthcare professionals accept Medicare assignments and therefore would not charge excess charges. In addition, there are eight states which prohibit the practice altogether. If you live in one of those states, you can ignore this missing benefit in Plan N.
Plan N does require some copays, which is probably the most notable difference in this plan. Each time you visit your doctor, you will pay up to $20 for a visit. An emergency room visit will cost you up to $50. If you are someone who sees their doctor frequently, Plan N may not be a good idea for you. However, if you’re relatively healthy, you may not mind the occasional copay – especially because Plan N premiums are quite a bit lower than Plan G premiums.
We hope this has helped you determine which of the Medigap plans is best for you. But if it hasn’t, or if you still have more questions, our Medicare advisors are here to help! Contact us today and schedule a consultation with one of our licensed insurance agents.
