Medicare Supplement 2021
There are ten standardized Medicare Supplements in 2021 available, referred to by the letter A, through N. The plans available depend on your state, but plans are available in 47 states. They no longer offer several plans, including E, H, I, and J. Also, not all insurers offer all 10 plans. But they are required to offer at least Plan A.
It is important to realize that Medicare Supplement’s “plans” are not the same as Medicare’s “parts.” Therefore, Part A and Plan A are not the same things.
Basic Benefits Offered by a Medicare Supplement in 2021
Individual plans offer different benefits offering various levels of coverage. Companies are required for all letter plans to provide coverage for basic services, known as standardized benefits. The location and provider will not change this. For instance, Plan G in Michigan will offer the same basic benefits as Plan G in Texas.
Although, if you’re located in Wisconsin, Minnesota, or Massachusetts, the available options for Medicare Supplement plans will vary. Some plans may include coverage for dental, vision, hearing aids, or long-term care – but they are not required to. Below are the basic benefits all plans are required to cover by law:
Medicare Part A
cost of coinsurance up to 365 days after exhausting benefits. Additionally, hospice copay and coinsurance costs must be covered.
Medicare Part B
Benefits must include copayments or coinsurance.
Up to 3 pints of blood required for medical surgery or treatment.
There are some plans that offer more than these benefits. The most coverage is offered by Plan F, which offers the following coverage:
Deductible for Part A and Part B
Part B coinsurance for preventive care
Part B excess charges
Coinsurance cost for Skilled Nursing Facility
Up to the plan limit for foreign emergency care
There may be innovative benefits added to the Plan, this varies between providers.
There are some plans that are starting to be phased out, including Plan F and Plan C. These are plans that cover Part B deductibles. Therefore, anyone becoming eligible for Medicare Supplement plans after Jan 1st, 2020, will not qualify for either of these.
However, for seniors that became eligible before Jan 1st, 2020, you may be able to purchase them. Additionally, if you are enrolled in either Plan F or Plan C already, you will not be dropped.
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Cost of Medicare Supplement Plans for 2021
Although all plans are required by law to include the basic benefit coverage, providers have the ability to offer them at different price points. That is why it’s recommended that you compare different plans from several providers before making a choice. You want to ensure that the Plan you select will fit your budget, but cover your healthcare services as well.
Depending on the company, premiums may be based on one of the following:
Ways to Enroll in Medicare Part B
Issue Age Rated
Premiums will be based on the person’s age at the initial enrollment. The younger a person is when enrolling, the cheaper the premium will be.
Community Non-Age Rated
These types of premiums are priced as a flat rate across the board, without age being a factor.
Attained Age Rated
Similar to the issue age, the premium for this type of Plan varies by your age when enrolling. However, prices increase over time as you age.
Note: Plan prices can change over time for other reasons than age, no matter what type of structure the provider uses. For example, inflation is one cause.
Eligibility and Enrollment
Eligibility for a Medicare Supplement plan requires seniors to first have Medicare Part A and B. It is recommended that you enroll for a Supplement plan during the six months Open Enrollment Period. This window starts at the first day of your birth month you turn 65. Therefore, if your birthday is Apr 27th, then Apr 1st would be the first day.
This window provides you the guarantee acceptance into the Plan you want. The only limitation is the Medicare Supplement plan must be available in your state. Otherwise, providers cannot deny you based on health reasons, including pre-existing conditions. In fact, they are not allowed to ask any medical-related questions during this time. However, there may be a waiting period applied.
For some reason, if you miss the 6-month window for enrolling in a Medicare Supplement in 2021, you may still apply for the Plan of your choice. However, the provider can ask you medical questions and then accept or decline your application. Additionally, they can charge a higher premium based on your answers or for pre-existing conditions. Therefore, it’s best to choose your Plan early. Some states allow Supplement plans to those under 65.
A pre-existing health condition is typically considered any condition that you had prior to enrollment. If enrolling after the 6-months one-time period, coverage can be limited, fully excluded, or even cause you to be denied a certain policy. Each Plan varies, including the definition for exclusions or limitations to coverage. To know how the Plan handles any pre-existing conditions, you need to carefully read the plan details.
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