Medigap Plan M: the Deductible-sharing Plan
Medicare Supplement Plan M is one of the new Supplements created by the Medicare Modernization Act. It first hit the Medicare insurance market in the summer of 2010. (Sometimes we hear people call it Medicare Part M or Medigap Part M, but the correct term is Plan M.)
KEY POINTS
Plan M is a type of Supplement Plan that provides beneficiaries with additional coverage for their Medicare expenses.
In exchange for a lower monthly premium, you pay half of the Part A deductible.
Fewer carriers offer Plan M compared to other supplement plans, such as Plan G.
Medigap Plan M: the Deductible-sharing Plan
Medicare Supplement Plan M is one of the new Supplements created by the Medicare Modernization Act. It first hit the Medicare insurance market in the summer of 2010. (Sometimes we hear people call it Medicare Part M or Medigap Part M, but the correct term is Plan M.)
Medicare Plan M provides the same basic benefits as other Supplements. However, it has a slightly reduced monthly premium in exchange for your willingness to pay half of your hospital deductible and all of your annual outpatient deductible. By sharing in these deductibles as well as excess charges, you get the benefit of reduced premiums.
Plan M could be a good fit for someone who doesn’t expect to visit the hospital often and feels he can afford the occasional cost-sharing. However, it’s important to have a licensed agent who specializes in Medicare Supplements to help you. He or she will evaluate the differences in premiums and make sure that the savings are worth the risk of some expenses.
Medigap Plan M Insurance Carriers
Every Medicare Supplement carrier chooses which plans it will offer for sale unless state law requires the carrier to offer certain plans. Because most people don’t understand cost-sharing, they tend to fear it, and therefore we see few carriers offering Plan M for sale.
The chart below shows basic information about the different benefits Medigap policies cover.
✔ ​= the plan covers 100% of this benefit
​X = the plan doesn’t cover this benefit
% = the plan covers that percentage of this benefit and you’re responsible for the rest
N/A = not applicable
The Medigap policy will only pay your coinsurance after you’ve paid the deductible (unless the Medigap policy also covers your deductible).
Medigap Plan M: the Deductible-sharing Plan
Medicare Supplement Plan M is one of the new Supplements created by the Medicare Modernization Act. It first hit the Medicare insurance market in the summer of 2010. (Sometimes we hear people call it Medicare Part M or Medigap Part M, but the correct term is Plan M.)
Medicare Supplement Plan M is one of the new Supplements created by the Medicare Modernization Act. It first hit the Medicare insurance market in the summer of 2010. (Sometimes we hear people call it Medicare Part M or Medigap Part M, but the correct term is Plan M.)
Medicare Plan M provides the same basic benefits as other Supplements. However, it has a slightly reduced monthly premium in exchange for your willingness to pay half of your
hospital deductible and all of your annual outpatient deductible. By sharing in these deductibles as well as excess charges, you get the benefit of reduced premiums.
Plan M could be a good fit for someone who doesn’t expect to visit the hospital often and feels he can afford the occasional cost-sharing. However, it’s important to have a licensed agent who specializes in Medicare Supplements to help you. He or she will evaluate the differences in premiums and make sure that the savings are worth the risk of some expenses.
Medigap Plan M Insurance Carriers
Plan M offers lower monthly premiums in exchange for slightly reduced benefits compared to some other supplement plans.
Under Plan M, you pay 50% of your Part A hospital deductible, the Part B deductible, and excess charges.
Plan M is offered less frequently compared to other plans.
Plan M may be a good fit for those looking to save on premiums and have a decent nest egg.
Key Takeaways
Plan M offers lower monthly premiums in exchange for slightly reduced benefits compared to some other supplement plans.
Under Plan M, you pay 50% of your Part A hospital deductible, the Part B deductible, and excess charges.
Plan M is offered less frequently compared to other plans.
Plan M may be a good fit for those looking to save on premiums and have a decent nest egg.
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