Medicare Supplement: A Game Changer

If you’re age 65 or older, you likely know the basic Medicare rules.

Medicare Part A pays for in-patient hospital stays and skilled nursing care at covered facilities, while Part B covers doctors’ services at Medicare-approved providers.^[1] You’re also likely familiar with their premiums: Part A is premium-free for those who paid Medicare taxes for 10 years, and Part B has a [$174.70] standard monthly premium with a [$240] deductible.

Pretty straightforward, right? Not exactly.

While they provide coverage, Parts A and B don’t cover all potential health care costs. In fact, coinsurance, copayments and high deductibles can cause expenses to escalate quickly, especially if you encounter health problems that require regular care or a hospital stay.

This is where a Medicare Supplement plan from Erie Family Life Insurance Company proves so valuable. A Medicare Supplement plan, sometimes called “Medigap,” is a private insurance policy that can help pay for much of these costs that Medicare doesn’t cover.

Erie Family Life Insurance Company offers multiple plans to meet your needs and fit your budget. While all of our plans help offset costs, Plan G^[2] offers the most comprehensive coverage available for those newly eligible for Medicare.

Plan G, while not available in Wisconsin, is our most popular plan. It allows you to choose any physician for your care, including specialists, while eliminating many out-of-pocket expenses associated with that care. Instead of paying copays and deductibles, you’ll pay a monthly premium—the average cost with discounts for someone 65 years old is around $131—for your Medicare Supplement plan. (While Wisconsin does not offer Plan G, you can construct similar coverages using the Base Plan and appropriate riders.)

While this all sounds great in theory, wouldn’t it be helpful to see how it might apply to a real-world scenario?

Consider John and Gary^[3]

When he turned 65, John signed up only for Medicare parts A and B. Like John, Gary also joined original Medicare but added Medicare Supplement Plan G from Erie Family Life.

Check out how each of them fared.

Doctor’s Visit

Since John has paid his deductible, Medicare Part B will pay for a visit to the doctor, but only at 80%. He’s on the hook for the other 20%.

Gary has also paid his Part B deductible, and because Plan G covers Part B copayments, he doesn’t have any out-of-pocket costs when he visits his doctor. This also includes any excess physician costs should his provider charge more than the Medicare-approved amount.

Hospitalization

When John falls ill and requires a stay in the hospital for a few days, Part A covers the full cost, but only after he pays a $1,600 deductible.

This deductible applies for each benefit period, starting upon admission and ending 60 days after discharge. This means it’s possible to have multiple benefit periods, each with their own deductible, per year.

Gary spends the same amount of time in the hospital as John, but because of his Medicare Supplement plan, he pays nothing out of pocket.

Blood Transfusion

Following his hospital stay, John requires a blood transfusion to treat his anemia. As an outpatient procedure at a hospital, a blood transfusion averages $405^[4] for Medicare participants. After Part B’s 80% coverage kicks in, John owes $81.

Since he doesn’t have to worry about out-of-pocket expenses here, Gary doesn’t receive a bill.

While this scenario illustrates some ways a Medicare Supplement plan can help alleviate some of the costs not covered by Medicare, it’s by no means a full list of benefits. For instance, foreign emergency care^[5] can help pay up to 80% of out-of-pocket expenses incurred.

An ERIE Agent can walk you through even more ways that you’ll benefit from a Medicare Supplement plan.

Home Office: 100 Erie Insurance Place Erie, PA 16530; Toll free at 1-800-458-0811. ERIE® Medicare Supplement insurance products and services are provided by Erie Family Life Insurance Company (home office: Erie, Pennsylvania). Go to erieinsurance.com for company licensure information. ERIE® Medicare Supplement insurance is not available in the District of Columbia and New York. Life insurance is not available in New York. Medicare Supplement policy forms for Tennessee: EFLMS3003 9/17 (A) TN; EFLMS3009 9/17 (F) TN; EFLMS3014 9/17 (G) TN; EFLMS3019 9/17 (N) TN. Maryland and Virginia: Medicare Supplement policies are available to individuals under the age of 65 who are eligible for Medicare by reason of disability. Wisconsin: Costs and complete details of the coverage are available through your ERIE Agent and in the government guide: Wisconsin Guide to Health Insurance for People with Medicare. Not connected with or endorsed by the U.S. Government or the federal Medicare program. This is a solicitation of insurance. A licensed insurance Agent/producer (or the company) may contact you. Erie Family Life does not sell Medicare Advantage plans. This policy has exclusions. For costs and complete details of the coverage, call your Agent.