A Guide to Supplemental Plans Offered by Medical Insurance Companies

Supplement insurance is additional health coverage that helps pay for services not covered by your traditional Medicare plan. It can be beneficial to supplement your healthcare costs, especially if you are looking to save money on medical expenses. This insurance can also help you pay for non-covered services like physical therapy, alternative care, and dental work. You need to study a guide before selecting one plan. This blog highlights the fundamentals of medical and supplemental insurance plans that are provided by medical insurance companies

Plans Offered by Medical Insurance Companies 

Supplemental insurance can be broken down into three categories: Medigap, Managed Care, and Medicare Advantage plans. Each of these types has different benefits depending on which one you choose to go with. It is important to understand the differences between each plan so that you are able to make an educated decision about what supplemental health coverage works best for you.

Medigap Plans 

When looking at Medigap plans, it is important to understand what each letter means in the plan name. The “S” stands for supplemental and indicates that these are the basic types of insurance available for Medicare recipients to supplement their coverage with. There are currently ten different standard fixed-benefit plans offered by private companies under this category:

A, B, C, D, F, and G. Plans E and H were previously available but discontinued in 2016 due to low enrollment numbers. The “N” stands for non-guaranteed benefits which means that you will pay the same premium every month regardless of how much healthcare you use during that time period. This is in contrast to plans with a “G” benefit which will vary depending on the amount of medical treatment you receive in that time period.

Managed care

It is another type of supplemental insurance available for Medicare recipients and it works by splitting up your coverage into two different parts: Part A (hospitalization) and part B (doctors). These types of plans allow you to receive both your doctor visits and hospitalization coverage at a lower cost than if you had received traditional Medicare insurance. The first benefit of this type of plan is that it allows users to choose the doctors they want covered which helps them remain in control over their healthcare decisions. Another perk is that these plans do not require any medical underwriting which means that if you are approved for one of these plans, then you will be able to move forward with it regardless of the state of health conditions that arise.

Medicare Advantage Plans

The third type is Medicare Advantage Plans and they work by allowing members access to private insurance companies who provide all their benefits under a single plan instead of having them split up across different plans. With companies like The Benefit Link, the perk of this plan is that all your benefits are provided in one place and you do not have to worry about going through different companies for different services. This type of coverage also offers a wide range of options when it comes to choosing a plan which can be beneficial if you want more control over what types of medical treatment, providers, or facilities you use.

Types of Medicare Advantage Plans

HMO or Health Maintenance Organization

These plans require you to use only the providers and medical facilities that are in your network.

PPO or Preferred Provider Organization

This type of plan allows members access to all participating providers but they will have a larger out-of-pocket cost when using non-participating providers.

Private Fee-for-Service 

This plan allows members to see any doctor or medical facility of their choice and they will receive a discounted rate from the provider for doing so.