If you have decided on AARP supplement insurance as a way to fill the gaps in your Medicare costs you may be wondering which of the several Medigap policies will suit you best.
If so, you are not alone. AARP supplemental insurance is one of the most popular ways to ensure that an accident or illness doesn’t break the bank.
This article will give a brief overview of how an AARP supplement insurance policy compliments Medicare. Additionally, we will address which Medicare supplement is the most comprehensive and which policies could save you money if you are relatively healthy.
How AARP supplement insurance works
An AARP supplemental policy is technically called a Medigap policy. Many people refer to a Medigap policy as a Medicare supplement. A Medigap policy is private insurance that requires a separate premium in addition to your Medicare Part B premium.
AARP supplement insurance works by filling in the gaps on your share of Medicare covered expenses. Medicare by itself requires that you pay deductibles and coinsurance for covered services.
The key point to take away from how supplemental insurance works is that it pays your share of Medicare covered expenses (coverage will vary by plan). If a service is not covered by Medicare, such as routine dental, a Medicare supplement will not offer any benefit.
Health and wellness benefits beyond Medicare are sometimes offered by Medicare Advantage plans, such as AARP Medicare Complete. But not Medicare supplements.
A couple AARP supplement insurance plans you should consider
The more comprehensive a Medigap policy the higher the premium. You should also factor in the costs for a Part D plan such as AARP MedicareRx Preferred.
There are generally speaking 10 Medigap plans (Massachusetts, Minnesota and Wisconsin have their own versions) and benefits are standardized for each plan. Benefits for any company offering Medicare supplement Plan G for instance will be identical.
Plans include: A, B, C, D, F, G, K, L, M, and N. There is also a high deductible option for Plan F.
Medicare Supplement Plan F
If you have the budget and want the most comprehensive plan choose AARP Medicare Supplement Plan F. Medigap plan F is the most popular plan nation wide.
Medicare Supplement Plan N
Plan N was introduced in 2010 as a way for people to have the benefits of a Medicare supplemental plan but also have access to a lower monthly premium. Plan N is often referred to as a good alternative to a Medicare Advantage plan.
The plan keeps premiums low by introducing a low copay for doctor’s visits and emergency room visits. Up to $20 and $50 respectively. You are also responsible for the Part B deductible.
If you are relatively healthy but still want the peace of mind that comes with a Medicare supplement this is a good option.
Although plans are standardized the AARP supplement insurance plans come with a few extra benefits not often found in other company’s plans. AARP plans include some vision benefits as well as a nurse help line.
AARP Medicare supplements do require that you are a member of AARP but the extra benefits including travel and shopping discounts often pay for the membership.
As to which plan is best, you will need to assess your health and your budget. But given the potentially high costs of going without, it makes sense to choose a plan.