Original Medicare offers solid coverage, allowing you to see any doctor that accepts Medicare throughout the country. But some beneficiaries find the 20% Medicare Part B coinsurance, in addition to other out-of-pocket expenses, difficult to afford. So, they look for extra coverage through Alabama Medicare Supplement Plans.
Alabama Medicare Supplement Plans are sold by private insurance companies to fill the coverage gaps left by Medicare Parts A and B. They often including your Part A deductible, and your Part B 20% coinsurance. These plans are standardized by the government, though. In fact, the Centers for Medicare & Medicaid Services (CMS) regulates Medicare Supplement Plans. They require all plans with the same letter name to provide the same benefit coverage across the country.
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With that being said, premiums can vary based on the insurance company you choose. So, it’s important to compare both different Alabama Medicare Supplement Plans and different insurers to find the best plan for you. EZ can help you with comparing both; first, though, take a look at our guide to how Medicare Supplement Plans work in Alabama.
Alabama Medicare Supplement Plans
A Medicare Supplement Plan is your best option if you need additional coverage to bridge any gaps in Original Medicare, especially the 20% coinsurance that you need to pay each time you access Medicare Part B services.
So if you’re looking for a Medicare Supplement Plan, the first thing you should know is that there are ten standardized plans available in Alabama, each of which is named after a different letter of the alphabet (A, B, C, D, F, G, K, L, M, and N). Every insurance provider must offer Plan A to customers. Only those who became Medicare eligible prior to January 1, 2020, can purchase Plans C and F.
As for the costs of these plans, in Alabama, monthly premiums can range from $69 to $403, depending on your plan and location.
It can be challenging to keep everything straight with so many options available, so we’ve outlined each plan’s coverage to help you get started.
Plan A
Medicare Supplement Plan A is the most basic plan available. But even though it’s basic, it will cover what is arguably the most important thing that Medicare Supplement Plans cover: the 20% of outpatient treatments that Medicare does not cover. All Medicare insurance carriers are required to offer Plan A, but some states do not require insurers to offer this plan to people under the age of 65 who are on Medicare disability.
Premiums for Plan A in Alabama range from $75 to $292.
Plan B
Medicare Supplement Plan B covers everything that Plan A does, including:
- Medicare Part A coinsurance and hospital costs – Part A only fully covers your first 60 days of inpatient hospital stays in a benefit period, after that you are required to pay a portion of your bills for each day after your initial 60 days. Days 61-90 have a coinsurance of $400 a day. If your stay is between 91 and 150 days, and you use your Lifetime Reserve days, your coinsurance will be $800 a day. Plan B covers 100% of these costs.
- Medicare Part B coinsurance or copay – You’ll typically have to pay Medicare Part B coinsurance for doctor visits and other outpatient care. That means Medicare Part B pays 80% of the Medicare-approved amount for covered services, leaving you to pay the remaining 20%. Plan B covers 100% of this.
- First 3 pints of blood – Original Medicare only pays for the fourth and subsequent pints of blood if you need blood during treatment. Plan B will pay for the first three pints.
- Part A hospice care and coinsurance – Hospice care is for patients who are nearing the end of their lives. These services are covered by Medicare, but copayments are required. These copayments include $5 for each symptom and pain relief medication prescription, as well as 5% of the Medicare-approved amount for inpatient assisted living. Plan B covers all expenses related to hospice care.
Plan B also covers the Medicare Part A hospital deductible, which Plan A does not cover. In 2023, the Medicare Part A deductible is $1,600 per benefit period. Because this deductible is not charged on an annual basis, but based on 60-day benefit periods, you may have to pay it more than once in a single year, so having a plan that covers this could be very beneficial.
Plan B premiums in Alabama range from $123 to $344.
Plan C
This is one of the most comprehensive Medicare Supplement Plans on the market. Plan C covers everything except for Medicare Part B excess charges. This means Plan C covers both your Parts A and B deductibles, as well as the 20% coinsurance you’d normally have to pay for all outpatient care.
Coverage includes the following:
- Part A hospital deductible and coinsurance
- Hospital costs up to an additional 365 days after Medicare benefits are exhausted
- Part A hospice care coinsurance or copayment
- Blood (the first 3 pints)
- Other Medicare-approved expenses associated with Part A hospitalization
- Medicare Part B coinsurance and copayments
- Part B deductible
- Other Medicare-approved expenses associated with Part B coverage
Unfortunately, Medicare beneficiaries who became eligible for Medicare after January 1, 2020 are no longer eligible for Plan C. If you had Plan C before that date, you can keep it, and if you were eligible for Medicare before Jan. 1, 2020 but haven’t yet enrolled, you may still be able to buy it.
Plan C premiums range from $135 to $401 per month in Alabama.
Plan D
Medicare Supplement Plan D covers the majority of out-of-pocket medical expenses including:
- Part A hospital coinsurance and hospital costs up to an extra 365 days after Original Medicare benefits are exhausted
- Part A hospice care coinsurance or copayment
- Part B coinsurance
- First 3 pints of blood
- Skilled nursing facility (SNF) care coinsurance – After the 20th day of your stay as an inpatient in a skilled nursing facility, Medicare Part A requires you to pay coinsurance. Part A coinsurance for skilled nursing facility care is $200 per day in 2023.
- Part A deductible
- 80% of foreign travel emergency costs (up to plan limits)
Plan D does not cover Medicare Part B deductibles or excess charges. You will have to pay excess charges if your doctor refuses to accept Medicare assignment, meaning they can charge you more than the amount Medicare will pay for the service. In fact, any doctor who does not accept Medicare assignment can charge up to 15% more than the Medicare-approved amount for a healthcare service; a Medicare Part B “excess charge” is the difference between what your doctor charges and the Medicare-approved amount.
Plan D premiums in Alabama can range from $121 to $319.
Plan F
Medicare Supplement Plan F has long been the best-selling plan on the market. It covers all of your out-of-pocket expenses, meaning you’ll only pay your monthly Plan F premium if you have this plan. The covered expenses include:
- Part A hospital deductible and coinsurance
- Hospital costs up to an additional 365 days after Medicare benefits are exhausted
- Part A hospice care coinsurance or copayment
- Blood (the first 3 pints)
- Other Medicare-approved expenses associated with Part A hospitalization
- Medicare Part B 20% coinsurance and copayments
- Medicare-approved doctor’s office fees
- Part B deductible
- Medicare Part B excess charges
- Other Medicare-approved expenses associated with Part B coverage
The only catch is that Plan F is not available to anyone who became/becomes eligible for Medicare after 2020. If you became eligible for Medicare before 2020, you can purchase one of these plans, or if you have already purchased Plan F and are grandfathered in, you can keep it as long as you want.
Premiums for Plan F can cost between $128 and $403 in Alabama.
Plan G
If you like the sound of Plan F, but are not eligible to purchase one of these plans, look into Plan G. This plan covers almost everything that Plan F does, including:
- Part A coinsurance and hospital costs up to an additional 365 days after Medicare benefits are used up
- Part A deductible
- Part A hospice care coinsurance or copayment
- Part B coinsurance or copayment
- Part B excess charges (if a provider is permitted to charge more than Medicare’s approved amount and does so)
- Blood transfusion (first 3 pints)
The only thing Plan G doesn’t cover is the Medicare Part B deductible. And the good news is that Plan G premiums are frequently very competitive, with premiums ranging from $115 to $386 in your state, making these plans a better value than Plan F.
Plan K
Medicare Supplement Plan K reduces your Original Medicare out-of-pocket expenses, but it does not completely fill the gaps. Plan K only pays 50% of some expenses until you reach your out-of-pocket maximum. These expenses include:
- Medicare Part B coinsurance – Plan K covers half of these costs, so you will be responsible for 50% of the remaining 20%. For example, if your doctor charges $100 for a service, Medicare will cover $80, Plan K will cover $10, and you will cover the remaining $10.
- First 3 pints of blood
- Part A hospice care coinsurance or copayment – Plan K will pay for half of these costs.
- Skilled nursing facility care coinsurance – Plan K pays half of the coinsurance for medical care in skilled nursing care facilities.
- Medicare Part A deductible – Medicare Supplement Plan K will pay half of these deductibles, or $800. Plan K requires you to pay the Medicare Part A deductible, which is $226 in 2023.
Plan K requires you to pay more out-of-pocket. However, there is something that Plan K has that other plans don’t: an out-of-pocket maximum. This means the most you’ll have to pay out-of-pocket in a year for Plan K is $6,620 (as of 2023). When you reach this limit, Plan K will cover the remaining approved costs for the rest of the year. Your maximum will be reset at the start of each calendar year.
Additionally, while Plan K covers most expenses at only 50%, it actually covers all of the Medicare Part A coinsurance. This is the only basic benefit that Medicare Supplement Plan K fully covers.
Because of its higher out-of-pocket costs, Plan K’s premiums are in the lower range, costing between $44 and $141 in Alabama.
Plan L
Medicare Supplement Plan L also covers the majority, but not all, of the costs associated with Original Medicare. It also has an out-of-pocket maximum ($3,310 in 2023), which means that once you pay that amount in covered expenses for the year, your insurer will pay your bills in full.
Medicare Supplement Plan L covers all of Medicare Part A coinsurance and hospital costs. It also covers a percentage of :
- Medicare Part B coinsurance – Plan L covers 75% of your Part B coinsurance.
- Blood – If you require blood while in the hospital, Plan L will cover 75% of the cost of the first three pints.
- Part A hospice care copayments – Plan L pays 75% of your Part A copays for hospice care.
- Skilled nursing facility care coinsurance – Plan L pays 75% of the $200 per day (after the 20th day of your stay) coinsurance for medical care in skilled nursing care facilities.
- Part A deductible – Medicare Supplement Plan L will cover 75% of your Part A deductibles for each 60-day benefit period . You must still meet your Medicare Part B deductible, which is $226 per year in 2023, if you choose Plan L.
Plan L premiums cost between $69 and $226 a month in Alabama.
Plan M
Like Plan K and Plan L, Medicare Supplement Plan M covers the majority of the costs associated with Original Medicare, but not all of them.
Medicare Supplement Plan M covers all of Medicare Part A coinsurance and hospital costs. It also covers:
- Medicare Part B coinsurance – Plan M pays your Part B coinsurance and/or copayments in full.
- Blood – If you require blood while in the hospital, Medicare Supplement Plan M will cover the first three pints of blood in full.
- Part A hospice care coinsurance or copayment – Plan M will cover all of your hospice care coinsurance and copays in full.
- Skilled nursing facility care coinsurance – Plan M covers the entire cost of Part A skilled nursing facility coinsurance.
- Part A deductible – Medicare Supplement Plan M will cover half of your Medicare Part A deductible. If you have Plan M, you will have to pay half of the $1,600 (or $800) deductible rather than the full $1,600.
Plan M premiums range from $82 to $261 per month in Alabama.
Plan N
Medicare Supplement Plan N fills the majority of coverage gaps left by Original Medicare. The only exceptions are the Medicare Part B deductible ($226 in 2023) and any Medicare Part B excess charges. Which are parts of doctor bills that exceed the Medicare-approved amount. This means that Medicare Supplement Plan N covers all of the following:
- Medicare Part B coinsurance – Plan N will cover your Part B coinsurance costs in full, with the exception of a copayment of up to $20 for some office visits. For emergency room visits that do not result in an inpatient admission, a second copayment of up to $50 may be required.
- Blood – If you require blood while in the hospital, Medicare Supplement Plan N will cover the first three pints.
- Part A hospice care coinsurance or copayment – Plan N pays your hospice care coinsurance and copayments in full.
- Skilled nursing facility care coinsurance – Your skilled nursing facility coinsurance will be fully covered by Medicare Supplement Plan N.
- Part A deductible – Medicare Supplement Plan N pays your $1,600 deductible in full for each 60-day benefit period.
- Foreign travel emergency care – Original Medicare typically does not cover medical care received outside of the United States. If you need emergency care while traveling outside of the United States, Medicare Supplement Plan N will cover 80% of the costs of qualified emergency medical care.
The price for Plan N can range from $84 to $272 a month in Alabama.
When to Enroll
While there are technically multiple times when you can choose to enroll in an Alabama Medicare Supplement Plan, there is one time that will be most beneficial to you. This is your Medicare Supplement Open Enrollment Period. Which is the 6-month window that opens up to you when you turn 65 and enroll in Original Medicare. The reason that you should purchase during this time is that you will be given “guaranteed issue rights”. This means that insurers cannot use medical underwriting to determine eligibility or premiums. In other words, insurance companies will not be able to deny you coverage or charge you more because of health conditions. So, it’s important to take advantage of your Medicare Supplement Open Enrollment Period.
It’s important to note that federal regulations do not guarantee access to a Medicare Supplement Plan if you are under 65 and eligible for Medicare due to a disability. The majority of states have adopted rules to ensure that enrollees under the age of 65 have at least some access to Medicare Supplement Plans. However, Alabama is not one of them. So, Medicare beneficiaries under 65 in Alabama can apply for a Medicare Supplement Plan. But coverage is not guaranteed, and insurers can use medical underwriting to determine whether to issue a policy and at what price.
How To Choose
When it comes to Medicare coverage, don’t be afraid to ask questions. Speak to an EZ agent who can explain everything to you and tell you what you need to do to sign up. EZ can assist you in enrolling in Medicare, looking for a Medicare Supplement Plan, or simply weighing your options. Additionally, our agents work with the best insurance companies in the country. They can provide you with a free comparison of all available plans in your area. We will go over your medical and financial needs and help you find a plan that works for you. To get started, simply enter your zip code in the bar below or give one of our licensed agents a call at 877-670-3602.
