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Medigap Plan Series: Exploring the benefits of Plan B

Updated: Dec 19, 2023

Today, we are continuing our discussion of the different Medigap Plan levels. In our last post, we discussed the first basic and lowest benefit option--Medigap Plan A. Today, we will explore Medigap Plan B--the second basic Medigap Plan. First, let's review Plan A Benefits from our last post again:


Plan A benefits include the following:


  • All insurance companies that sell Medigap insurance must offer Plan A.

  • It covers 100% of Medicare Part A (hospital Insurance) coinsurance and hospital costs (up to an additional 365 days after Medicare benefits are used)

  • It covers 100% of Medicare Part B (Medical Insurance) coinsurance or copay

  • It covers blood (first 3 pints)

  • It covers 100% of Medicare Part A hospice care coinsurance or copay

Plan A benefits do not cover the following:

  • Part A Deductible,

  • Part B Deductible

  • Medicare Part B excess charge (the amount a doctor or other health care provider is legally permitted to charge is higher than the Medicare‑approved amount--the difference is excess charge)

  • Foreign Travel Emergency


Medigap Plan B covers all of the benefits under Plan A + the Medicare Part A Deductible. *Another important difference that we would like to point out here...Unlike Plan A, Insurance Carriers that sell Medigap Insurance are not required to offer Plan B benefits.


Medigap Plan B does not cover the following:


  • Part B Deductible

  • Medicare Part B excess charge (the amount a doctor or other health care provider is legally permitted to charge is higher than the Medicare‑approved amount--the difference is excess charge)

  • Foreign Travel Emergency


Medicare Part A deductible is $1,600 and $1,632 for 2023 and 2024, respectfully. Since Medigap Plan B covers these amounts, this is a big savings for seniors 65 and over who see the benefits of purchasing a Medigap Plan.


How your Health Savings Account (HSA) can help cover some non-covered Medicare costs?


What is an Health Savings Account (HSA)? "An HSA is a savings account that you can contribute pre-tax dollars to during your working years to save money that can then be used for health expenses. While you can use money from your HSA for medical expenses prior to retirement, you can also allow the money you contribute to grow over time and use it after retirement for qualified medical expenses.


Here are some examples of qualified medical expenses for HSAs:


  • Medicare Part B, C. and D premiums

  • Deductibles for all parts of Medicare

  • Dental expenses (many Medicare plans don’t cover routine dental care)

  • Vision care expenses (eye exams aren’t covered by Original Medicare)

  • Hearing care expenses (hearing tests and hearing aids aren’t covered by Original Medicare)

  • Over-the-counter medications"


Keep in mind if you are still working (or retired) and have a HSA Account, you can use the money you save in an HSA account as long as you are not contributing to the HSA account.

Matter of fact, you should make sure no contributions are going into an HSA before you enroll with Medicare. If not, you can risk gaps in coverage and penalties. If you have questions about your HSA, please contact your employer's Human Resources Department.


IRS Contribution limits for HSAs for 2023 and 2024


According to the IRS, for Plan Year 2023, you can contribute up to $3,850 as an individual or up to $7,750 as a family to your HSA account. For Plan 2024, you can contribute up to $4,150 as an Individual or $8,300 as a Family to your HSA Account. For both plan years, you can contribute an extra $1,000 to your HSA account if you are 50 years old or over.


How many people have enrolled in Medigap Plan B?


According to AHIP (formerly known as American Health Insurance Plans), in December 2021, 14,592,068 participants enrolled in a Medigap Plan; 181,741 participants enrolled in a Medigap Plan B. During this same period, in the State of Maryland, there were 2,645 persons that enrolled in Medigap Plan B. In the State of North Carolina, there were 1,544 persons that enrolled in Medigap Plan B.


Overall, what are 65 and over people saying about their Medigap Plan policies?


Based on a January 2023 survey conducted by AHIP, 65 and over people are saying the following about their Medigap Plans:


  • "Seniors with Medicare Supplement coverage continue to be highly satisfied with their coverage, including its benefits, services, and the expenses it covers.

  • Medicare Supplement coverage ensures seniors receive high-quality care, allows them to choose the doctors and specialists they know and trust, and makes it easier for them to deal with bills and paperwork.

  • Medicare Supplement’s guaranteed, renewable coverage and affordable cost provides peace of mind for seniors, who worry about their financial security and physical well-being if they were to lose their Medicare Supplement coverage".


*Please note the Medigap Insurance Carriers that partner with Benefits4Retirees offer Plan A but do not offer Plan B benefits.


We hope this information has been helpful to you. We look forward to discussing Medigap Plan C in our next post. Have a great evening!


Do not follow where the path may lead. Go instead where there is no path and leave a trail”~ Ralph Waldo Emerson


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