Referred to as Medicare. Medicare comes in two parts, Part A and Part B, which work hand in hand to provide basic medical coverage for beneficiaries. However, Medicare doesn’t provide coverage for all types of medical procedures, and in many cases, beneficiaries have to part with some out of pocket costs to receive treatment. This is where Medigap coverage, also known as Medicare Supplement plans, come in handy. Medical expenses that Medicare doesn’t typically cover including co-pays, coinsurance, deductibles, and other extra expenses can be covered by Medigap.
The American Association of Retired Persons, commonly referred to as AARP, is a non-profit body committed to improving the lives of American citizens as they approach and get into old age. If you’re a Medicare beneficiary shopping for a supplement plan, one of your best options would be AARP Medigap Health Insurance. Note that AARP Medigap plans are offered through United Healthcare Medicare Supplement. They’re identical regardless of the provider, but the cost of the plan may vary from an insurance company to the next.
AARP Secondary Insurance to Medicare
Depending on the state, AARP Secondary Insurance to Medicare offers most, if not all, supplement letter plans A-N.
What do AARP Medigap Insurance Plans Cover
Traditional Medicare coverage has gaps, meaning that beneficiaries will incur some out of pocket expenses when they seek medical care. These costs will vary depending on the type of care you need, where you get it, and the type plan you carry. Typically, AARP Medigap coverage includes the following:
AARP Medigap Coverage
- Private duty nursing care: Original Medicare pays for skilled nursing care for the first 20 days. You’ll be required to pay a part of the daily fee if you exceed 20 days in a nursing facility. Your AARP Medigap plan pays your share of the daily charge from day 21 to day 100
- Excess charges: Some doctors do not accept the assignment or the Medicare-approved amount as payment in full and ends up adding excess charges. Plans F and G can pay the entire excess amount
- Care when you travel outside of the United States: Original Medicare doesn’t pay for the care you receive outside of the United States. Some plans (C, D, F, G, M, and N) provide some level of coverage for emergency care when you’re outside the US. This benefit pays for your emergency care (80 percent) during the first two months of your trip after you meet the deductible
- Vision or dental care and hearing aids: Original Medicare doesn’t cover vision, dental care or hearing aids
- Eyeglasses and other medical services not covered by Original Medicare
- Preventative services: All plans provide preventative care which pays for coinsurance associated with preventative care from Medicare Part B
On top of that, AARP Medigap plans take care of your deductibles, co-pay, coinsurance, and blood transfusions. Note that your Original Medicare coverage doesn’t pay for the first three pints of blood if needed in a medical procedure. All the plans cover this cost fully, except K and L which pay for 50 and 75 percent of the cost of the first 3 pints of blood. It’s recommended that every eligible American citizen get this coverage before the need for it arises.
How Does AARP Medigap Insurance Work
Your AARP Medicare Supplement Health Insurance will help you pay for Medicare-approved medical expenses that Original Medicare doesn’t cover. AARP Medigap policies will pay its share of the medical expenses after Original Medicare pays its portion. Whether the plan will pay all these expenses will depend on the type of plan you have.
How Many Medigap Plans Are There
There are ten types of government approved and regulated Medigap plans. These plans are standardized and are the same in most states in the country except for Wisconsin, Minnesota, and Massachusetts. They are identified with a single alphabet letter, running from letter A through to N.
There are certain basic benefits that all plans must offer. Benefits and services are similar with all 10 standardized plans, it’s the cost sharing levels in these benefits that vary. You’ll have to take a closer look at each one of these plans before you settle for one. Below we’ll review the top three plans by AARP.
AARP Supplemental Plan F
AARP supplemental Plan F coverage is also know as AARP Part F. This is one of the most popular plans among Medicare recipients because it pays most of the out of pocket costs that Medicare doesn’t cover. AARP Medigap Plan F benefits include all the core policy benefits as well as your Part B Medicare deducible and any excess charges from the doctor.
AARP Medigap Plan N
AARP Medigap Plan N coverage doesn’t offer the most coverage of all the plans, but it does cost less. Depending on your medical needs you may save the most money with the policy. Unlike Plan F, AARP supplemental Plan N doesn’t cover your Part B deductible or any excess charges. This plan has a small co-payment for some office visits and/or emergency room visits.
AARP Medigap Plan G
Does AARP Offer Medigap Plan G? Yes, AARP Medigap Plan G benefits are the same as Plan F, the only difference is it doesn’t cover your Part B deductible. However, it does cover any doctors excess charges. Plan G does include foreign travel coverage up to your plan limits.
Are There Other Options
Though some people might consider a Medicare Advantage plan as an alternative to Medigap, there’s a pretty big difference between the two. Technically, Medigap is the only form of supplemental insurance in existence.
Medicare Advantage is similar of Medigap in the sense that both are for people enrolled in Original Medicare and can be used to supplement it, however, Medicare Advantage is a totally different type of Medicare insurance. You can have both Original Medicare and a Medigap plan but you cannot have Original Medicare and Medicare Advantage plan.
Note that once you purchase a plan, the carrier cannot cancel it unless you fault on your premium. However, the prices of AARP Medigap insurance rates are subject to change, but the insurer is required to inform you in advance before increasing the price.