Medicare Supplement Plan Participation Is Rising in North Carolina

Are you a senior enrolled in Medicare? Are you considering additional coverage options to help with your healthcare costs? 

Recent research shows that more and more seniors are turning to Medicare supplement plans. 

Also known as Medigap plans, these plans are specifically designed to help you fill in the gaps often left by traditional Medicare coverage.

Why Seniors Are Selecting Medicare Supplement Plans

According to a 2021 report from AHIP, the number of people choosing a Medicare Supplement plan has increased for the fifth year. Over 50% of fee-for-service Medicare enrollees without extra coverage chose a Medicare Supplement plan. 

Fee-for-service refers to anyone enrolled in traditional Medicare. This type of enrollment gives you more flexibility in your healthcare choices, but it can also mean you must pay for deductibles, coinsurance, and copayments - out of your pocket.

With a Medicare Supplement plan, you get added financial protection. Which can help you better manage your medical bills and avoid high out-of-pocket costs.

The report also showed that enrollees without a Supplement plan were three times more likely to have issues paying their medical bills than those who had taken out Medicare Supplement policies. 

What Do Medicare Supplement Plans Cover?

Medicare Supplement plans give you additional coverage than what you’ll get with traditional Medicare. They’re private insurance policies that are set up to complement your Medicare coverage. To provide peace of mind, you’ll have coverage for healthcare expenses that Medicare won’t fully pay for.

These plans typically cover things like:

1. Deductibles: Many plans will cover deductibles associated with Medicare Part A (hospital insurance) and Part B (medical insurance).

2. Coinsurance and Copayments: These plans can often pay for a portion, and sometimes all, of the coinsurance and copayments for things like hospital stays, doctor visits, and other healthcare services.

3. Skilled Nursing Facility Care: Some plans will cover the coinsurance for skilled nursing facility care, a service not fully covered by Medicare.

4. Excess Charges: Certain plans may also cover excess charges, which occur when healthcare providers charge more than the amount approved by Medicare.

5. Medical Care Overseas: Some plans will give you coverage for emergency medical care if you’re overseas, which isn’t usually covered by Medicare.

6. Blood: Many plans will cover the cost of blood if you require a medical procedure (the first three pints).

7. Hospice Care: Some plans will cover coinsurance or copayment for hospice care (under Medicare Part A).

Medicare Supplement plans don’t usually cover dental, vision, or prescription drugs. If you want additional coverage for these, you’ll need to consider Medicare Advantage plans or standalone prescription drug plans. Our local agents are here to help if you have any questions.

Who Is Enrolling in Medicare Supplement Plans?

While we know that Medicare Supplement plans are popular with many seniors, the AHIP report dug deeper into who was taking up these plans.

Most policyholders (56%) are women, and around 40% are over 75. Approximately 20% of policyholders earn less than $30,000 annually, highlighting how essential it is for seniors to access affordable healthcare options.

Of those surveyed, 94% said they were satisfied with their plan choice. Many were concerned they’d lose their financial security if they didn’t have a Medicare Supplement plan (91%) and worried about paying co-pays and co-insurance without coverage (90%). Almost all (96%) of those surveyed also said that having this additional coverage meant they could see the doctors and specialists of their choice without the stress of out-of-pocket costs. This gives them peace of mind that they can access the healthcare they need when they need it without additional strain on their budget.

What Are the Benefits of Medicare Supplement Plans?

One of the many benefits of taking out a Medicare Supplement plan is its guaranteed renewability. Unlike some other healthcare insurance, you won’t lose access to your coverage or lose any benefits year to year. 

Because plans are standardized, you also know precisely what you’re getting, making it easier to choose the right plan. In our experience, Plan F and Plan G are the most popular with our clients.

What You Need to Know About Recent Legislation

Over the last 30 years, we’ve seen some big changes to Medicare Supplement plans. For example 2003, the Medicare Modernization Act eliminated prescription drug benefits from Medicare Supplement coverage. Two new plans (K and L) were also introduced with cost-sharing features.

In 2020, new laws were introduced to stop the sale of Medicare Supplement plans covering the Part B deductible to newly eligible beneficiaries. But, those who were eligible for Medicare before 2020 can still access these plans. 

Because of the many changes and intricacies of different plan types, we recommend chatting to a specialized health insurance agent if you’re considering enrolling in a Medicare Supplement Plan.

Need Help to Find The Right Medicare Supplement Plan?

Medicare Supplement plans offer plenty of benefits to seniors. They also give you peace of mind, and they provide much-needed financial protection when you need it most.

With healthcare costs rising, these plans can help you manage your expenses without compromising your healthcare. 

If you’re enrolled in Medicare, consider chatting to one of our local North Carolina healthcare insurance agents to discuss your options. We can help ensure you’ve got the coverage you need.