With 10 different Medicare Supplement plan letters, you may be looking for a simple way to determine which fits best — A, B, C, D, F, G, K, L, M, or N. As is always the case with insurance, it depends on your client’s preferences and circumstances.
Listen to this article:
There’s a time and a place for each plan letter. After you’ve investigated your client’s overall health needs, coverage preferences, budget, and lifestyle enough to determine that a Medicare Supplement plan is the best option, it’s time to choose a standard plan type.
Know Your Letters
The first step to picking the best Med Supp plan is knowing what each plan letter covers. Using a chart like the one below makes this process simple. Keep a copy handy for quick reference.
Standard Medicare Supplement Plans & Benefits
|Part A coinsurance and hospital costs up to an additional 365 days after Medicare benefits are used up|
|Part B coinsurance or copayment||50%||75%||2|
|Blood (first 3 pints)||50%||75%|
|Part A hospice care coinsurance or copayment||50%||75%|
|Skilled nursing facility care coinsurance||50%||75%|
|Part A deductible||50%||75%||50%|
|Part B deductible|
|Part B excess charge|
|Foreign travel exchange (up to plan limits)||80%||80%||80%||80%||80%||80%|
2Med Supp pays 100% of the Part B coinsurance, excluding copayments of up to $20 for some office visits and up to $50 for ER visits that don’t lead to inpatient admission.
3Upon meeting your annual out-of-pocket (OOP) limit and annual Part B deductible, the Med Supp pays 100% of all covered services for the remainder of the calendar year. OOP limits are for CY 2024.
4Plan only available to those eligible for Medicare before January 1, 2020.
5Enrollees in high-deductible F must pay for their Medicare-covered costs up to the deductible amount before the Med Supp begins to pay. Only available to those eligible for Medicare before January 1, 2020.
Note: A check mark means the plan pays 100% of the benefit. Med Supp plans are standardized differently in MA, MN, and WI.
With so many coverage options, you can feel confident that one of them will be a good fit for your client. Learning the details of each plan letter prepares you for the next step — diving deeper to discover which plan letter is the ideal one for your client.
Ask the Right Questions
The next step to picking the best plan letter is figuring out what’s important to your client and what his/her individual health needs entail. You’ll need to ask them questions to get the full picture. Does your client like to travel? Does she have some financial cushion for out-of-pocket expenses? Does he live in a state that allows excess charges? Will she be visiting the doctor often? Did they become eligible for Medicare before January 1, 2020? Going through the flow chart below will steer you in the right direction in identifying the best fitting plan letter.
Keep in Mind
Before signing a client up for a certain plan letter, make sure your client knows and approves of exactly what will and what won’t be covered. Just because you have a healthy client with money saved for retirement doesn’t always mean Plans A, B, K, or L will be the best fit. That client might want to keep out-of-pocket costs low regardless, so D or G may be a better choice. Keep an open dialogue with your client to ensure a good fit.
Another important note to keep in mind: Since new-to-Medicare clients can’t enroll in plans C and F, the number of people on these plans will dwindle, likely causing premiums to skyrocket. You may want to consider D, G, or N instead.
Before signing a client up for a certain plan letter, make sure your client knows and approves of exactly what will and what won’t be covered.
This article is a jumping off point to give you a general idea of which plan letter to further investigate. Learn more by reading our free in-depth guide, The Complete Guide on How to Sell Medicare Supplements!
Inside, we have a full plan-by-plan breakdown with detailed descriptions of ideal clients for each Medicare Supplement letter. We also discuss what to do after determining the best plan letter… determining the best carrier! Discover how to utilize Ritter’s Medicare Quote Engine (MQE), carrier underwriting restrictions, enrollment info, and more.
Choosing the best plan letter can feel like a daunting task, and following the steps outlined here will make it easier. When you learn the details of each plan letter and ask your clients the necessary questions, you’ll find them the best fit and earn their trust and loyalty in the process, which lead to referrals and a growing business.
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