Medicare Supplement plans are one such form of additional coverage. A key reason why supplement plans are so popular is because they cover some of the out-of-pocket costs not covered by Original Medicare.
What Are Medicare Supplement Plans?
These plans are sold by private insurance companies, like AARP. There are a total of 10 Medicare Supplement plans available on the market. Named A–N, each of these plans offers a different set of benefits. The benefits offered by these plans are standardized by the federal government.
The following are some of the benefits common among each of the Medicare Supplement plans:
- They help cover some of the out-of-pocket costs not covered by Original Medicare
- They allow you to see any doctor or specialist who accepts Medicare without a referral
- Your coverage will protect you wherever you travel within the United States
- Some plans offer coverage when traveling abroad
How Can I Purchase a Medicare Supplement Plan?
To purchase a Medicare Supplement plan, you must be enrolled in Original Medicare. The best time to enroll is during your Medigap Open Enrollment Period. This six-month period begins when you enroll in Medicare Part B.
There are a total of 10 Medicare Supplement plans available on the market. Named A–N, each of these plans offers a different set of benefits.
During this period, insurance companies cannot subject you to medical underwriting. This is a process that can be used to raise your premiums or deny you coverage. Outside of this period, you are not guaranteed the ability to enroll in a Medicare Supplement plan. Each plan of the same type (A–N) must cover the same standard set of benefits. However, your costs can vary from carrier to carrier.
AARP Medicare Supplement Plans in 2020
AARP offers the following eight Medicare Supplement plans, each of which are insured by UnitedHealthcare:
- Plan A
- Plan B
- Plan C*
- Plan F*
- Plan G
- Plan K
- Plan L
- Plan N
*Plan C and Plan F are available only to applicants who were first eligible for Medicare prior to 2020.
As mentioned before, each plan offers a different set of benefits. You’ll want to review each of these options to find the plan that works best for you.
AARP Medicare Supplement Plan A
This is the most basic Medicare Supplement plan available. It covers 100% of the following benefits:
- Coinsurance payments for inpatient hospital care (After you’ve used up your Part A benefits, Plan A will cover up to 365 additional days.)
- Medicare Part B coinsurance or copayments
- Up to 3 pints of blood for use in a medical procedure
- Coinsurance or copayments for hospice care under Medicare Part A
AARP Medicare Supplement Plan B
Plan B covers each of the benefits offered under Plan A. Additionally, it covers 100% of your Medicare Part A deductible. In 2020, the Part A deductible is $1,408.
AARP Medicare Supplement Plan C
One of the most exhaustive Medicare Supplement options, Plan C covers most out-of-pocket expenses. However, Plan C is being phased out. Those who became eligible for Medicare after January 1, 2020, will not be able to purchase this plan.
Plan C includes all of the benefits offered under Plan A. For those who are eligible, AARP’s Plan C also covers:
- Coinsurance for care provided in a skilled nursing facility
- Your Medicare Part A deductible ($1,408 in 2020)
- Your Medicare Part B deductible ($198 in 2020)
- 100% of approved foreign travel emergency costs (up to plan limits)
AARP Medicare Supplement Plan F
Plan F is widely considered the most comprehensive of all 10 Medicare Supplement plans. Providing the most assistance with out-of-pocket costs, Plan F often comes with higher premiums. Like Plan C, Plan F is being phased out. You will not be able to purchase coverage under Plan F if you were not eligible for Medicare prior to 2020.
In addition to the standard benefits offered under Plan A, AARP’s Medicare Supplement Plan F covers:
- Medicare Part B excess charges
- Your Medicare Part A deductible ($1,408 in 2020)
- Your Medicare Part B deductible ($198 in 2020)
- 100% of approved foreign travel emergency costs (up to plan limits)
AARP Medicare Supplement Plan F: The High-Deductible Option
AARP also offers a high-deductible Plan F option. This plan will require you to pay a plan deductible of $2,340 before beginning to assist with your costs. Once you’ve met your deductible, the plan will pay 100% of covered costs for the remainder of the year.
AARP Medicare Supplement Plan G
Like Plan F, Plan G is one of the most comprehensive Medicare Supplement plans available. Plan G does not cover your Medicare Part B deductible. However, it does cover all of the standard benefits included with Plan A. It also includes:
- Medicare Part B excess charges
- Coinsurance for care provided in a skilled nursing facility
- Your Medicare Part A deductible ($1,408 in 2020)
- 100% of approved foreign travel emergency costs (up to plan limits)
AARP Medicare Supplement Plan G: The High-Deductible Option
AARP also offers a high-deductible version of Plan G. This option will require you to pay a deductible of $2,340 before the plan begins to assist with costs. Once you’ve met your deductible, the plan will pay 100% of covered costs for the remainder of the year. This plan does not cover your Part B deductible. However, it will count your payment toward your Plan G deductible.
AARP Medicare Supplement Plan K
Looking for more basic Medicare Supplement coverage at a lower cost? Plan K might be the right choice for you. Plan K offers partial coverage for many of the costs you’d pay out of pocket. This includes:
- 100% of your coinsurance payments for inpatient hospital care (After you’ve used up your Part A benefits, Plan A will cover up to 365 additional days.)
- 50% of your Part B coinsurance or copayments
- 50% of up to 3 pints of blood
- 50% of your Part A hospice care coinsurance or copayment
- 50% of your coinsurance for care provided in a skilled nursing facility
- 50% of your Part A deductible
An Additional Benefit Of Plan K
Plan K is one of only two Medicare Supplement plans that includes an annual out-of-pocket limit. In 2020, this limit is set at $5,880. Once you’ve spent this amount, your plan will cover 100% of your Medicare costs for the remainder of the year.
AARP Medicare Supplement Plan L
Similar to Plan K, Medicare Supplement Plan L offers less comprehensive coverage for a lower price. Plan L offers coverage for all basic benefits included with all Medicare Supplement plans. However, for some of these benefits, the coverage provided is partial rather than full.
Here are the benefits and coverage levels you can expect from Plan L:
- 100% of your coinsurance payments for inpatient hospital care (After you’ve used up your Part A benefits, Plan A will cover up to 365 additional days.)
- 75% of your Medicare Part A hospice care coinsurance or copayment
- 75% of your Medicare Part A deductible
- 75% of your Medicare Part B coinsurance or copayment
- 75% of up to 3 pints of blood for use in a medical procedure
- 75% of your coinsurance for care provided in a skilled nursing facility
An Additional Benefit Of Plan L
Plan L is one of two Medicare Supplement plans that includes an annual out-of-pocket maximum. In 2020, that limit is set to $2,940. Once you’ve spent this much, your plan will cover up to 100% of your Medicare costs for the remainder of the year.
AARP Medicare Supplement Plan N
Plan N is the final Medicare Supplement plan available from AARP. It covers the following benefits:
- 100% of your coinsurance payments for inpatient hospital care (After you’ve used up your Part A benefits, Plan A will cover up to 365 additional days.)
- 100% of your coinsurance or copayments for hospice care
- 100% of your Medicare Part A deductible
- 100% of your Medicare Part B coinsurance or copayments*
- 100% of up to 3 pints of blood to be used in a medical procedure
- 100% of your coinsurance for care provided in a skilled nursing facility
- 100% of approved foreign travel emergency costs (up to plan limits)
* Certain Part B copays do not qualify for coverage under Plan N. This includes:
- A copayment of up to $20 for some office visits
- A copayment of up to $50 for emergency room visits that do not result in an inpatient admission
Moving Forward With AARP Medicare Plans
AARP offers many options for Medicare health insurance. As you get close to entering Medicare, reach out to an independent professional to compare quotes on AARP Medicare plans. Find out which ones are available in your area, and also get help finding the one that best fits your needs.
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