Does A Medicare Supplemental Plan Replace Original Medicare?

A quick answer to the question, “Does a Medicare supplemental plan replace original Medicare”, is no it does not replace original Medicare.

What Does Supplemental Plan Mean

The use of the word “supplemental” can be confusing. In many instances supplement means, “in place of”, which would indicate a Medicare supplemental plan would replace the original Medicare plan. This is not the case. In this context, supplement means, “to enhance”, or “to add to”. When you purchase a Medicare supplemental plan it does not replace the original Medicare plan, it simply enhances or adds to that plan.

How Does A Supplemental Plan Work

As the name implies, a Medicare supplemental plan supplements the original Medicare plan. Generally speaking, Medicare will only pay about 80% of the fees providers charge. That means when your doctor, or hospital, or other health care provider sends a bill to Medicare they will only get paid about 80% of that bill. The other 20% will either be written off by the provider or they will expect you to pay it out of your own pocket. This is where the supplemental insurance comes into effect. Depending on the supplemental plan you purchase, this insurance will pay all, or at least most of the remaining 20%. Because it is a supplemental plan, it will not pay for anything Medicare does not already cover. It will only pay that portion of covered charges that Medicare does not pay which is about 20%.

If I Keep Medicare, Is A Supplemental Plan Worth The Cost

It is the same with Medicare supplemental plans as any other insurance. The cost-to-benefit ratio depends on how much it is used and the protection it affords.

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