If you’re looking for a Medicare Supplement plan (also known as Medigap) in 2021, then you know that finding the best plan for you can get tricky. Plans vary widely by state and provider, which makes it difficult to find a “one-size-fits-all” plan. Additionally, you might have access to extra MS plans based on when you became eligible for Medicare, with those who become eligible after the cutoff date losing access to two popular plans. In any case, there are some important changes and updates happening to Medicare Supplement plans in 2021. While most of these changes have to do with increasing rates and costs, others are related to plan availability and coverage. Let’s take a closer look at the top 4 changes to Medicare Supplements in 2021.

You Could Have Access to 10 Different Plans

Depending on your age and location, you could have access to up to 10 different Medicare Supplement Plans: A, B, C, D, F, G, K, L, M, and N. However, in many states, only some of these plans are available. Moreover, as of January 1, 2020, Plans C and F are only available to you if you became eligible for Medicare prior to 2020. This means that new Medicare beneficiaries will only be able to choose from a maximum of 8 plans in 2021.

If Your Plan Has a Deductible, It Will Go Up

Most Medicare Supplement plans don’t come with a deductible. Why? Because many Medigap plans help you pay for costs associated with Original Medicare, including Part A or B deductibles. Thus, it wouldn’t make much sense to replace an Original Medicare deductible with a Medicare Supplement deductible. That said, some Medigap plans (like F and G) have lower monthly premiums in exchange for high deductibles. The standard Medicare Supplement deductible in 2021 is $2,370.

Your Premiums Will Likely Increase

It would be impossible to give you an exact number for your Medicare Supplement premium in 2021, as the rates are specific to you, your location, and your provider. Insurance providers can either charge a monthly premium that is the same for everyone in a given location or premiums that vary based on your age. In any case, Medicare Supplement premiums — on average — will increase in 2021 to account for the rising costs of healthcare.

Your Out-of-Pocket Limits Will Increase

Though similar to deductibles, out-of-pocket limits represent the maximum amount you would need to pay out-of-pocket in a given benefit period. Once you reach your out-of-pocket limit, your Medicare Supplement plan pays 100% of your covered costs for the rest of the year. In 2021, Plan K will have an out-of-pocket limit of $6,220, while Plan L will have an out-of-pocket limit of $3,110. It’s important to remember that some Medicare Supplement plans have no out-of-pocket limit.

The Bottom Line

Medigap is a great way to help you pay for extra costs associated with Original Medicare. However, just like Medicare, Medigap is constantly evolving. You’ll need to be sure to stay updated on the latest changes to Medicare Supplement plans in 2021 and beyond.

If you’d like to learn more about changes in Medicare Supplements for 2021 or your Medicare coverage options, feel free to fill out this form or give us a call anytime. Time for 65’s partnered licensed agents are focused on giving you the information you need, with zero pressure to enroll in a plan.