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Medigap plans or Medicare Supplement plans cover some or all of the out-of-pocket costs that traditional Medicare doesn’t cover such as copays, deductibles, and coinsurance. More than 11,000 residents of Hawaii are currently enrolled in Medigap insurance, representing about 7% of Original Medicare beneficiaries in the state. Many Kamaʻāina stand to gain from finding a Medigap plan that suits their needs. If you are enrolled in Medicare* or you’re getting ready to enroll in Medicare and you are considering supplemental insurance, read on to learn which plans may suit your needs.
*Annual Open Enrollment begins October 15, 2022.
Best Medicare Supplement plans in Hawaii for 2022
Medigap plans are categorized according to the type of benefits they offer. In Hawaii, there are 10 federally standardized plans identified by the letters A-N. While each plan with a particular letter category includes identical benefits, the cost of the plan may vary from insurer to insurer and depending on the plan’s location. If you are shopping around and are unsure about why the cost of the plan is different from insurer to insurer, we recommend asking how the agency is “rating” their plans. You may also wish to know how many insurance companies they work with and whether they offer a household discount.
There is no best plan for everyone because we all have different needs and budgets. When deciding on the best Medicare supplement plan for you, it’s important to consider a range of factors, including:
Your budget for monthly premium
The types of health care costs and care you expect to need in the coming year
Whether you travel regularly
The plans that are available where you live
Best full-coverage Medicare Supplement plans for Medicare beneficiaries who became eligible for Medicare before January 1, 2020
Plans C and F have been very popular Medicare Supplement plans because of their full coverage and they are the only two plans that cover the Part B deductible. However, these plans will eventually be phased out because only beneficiaries who became eligible for Medicare before January 1, 2020 are allowed to enroll in them.
Plan F fully covers the following:
Part A coinsurance and hospital costs
Part B coinsurance or copayment
First three pints of blood
Part A hospice care coinsurance or co-payment
Coinsurance for skilled nursing facility
Medicare Part A deductible
Medicare Part B deductible
Medicare Part B excess charges (an additional charge above the Medicare-approved amount)
Foreign travel emergency expenses (80%)
Plan C has the same coverage except that it doesn’t cover Medicare Part B excess charges.
Best full-coverage Medicare Supplement plans for Medicare beneficiaries who became eligible for Medicare on or after January 1, 2020
Due to federal legislation, new enrollees who became eligible for Medicare on or after January 1, 2020 are prohibited from enrolling in Plan C or Plan F. The best full-coverage supplement plan for younger kupuna is Plan G. Plan G includes all the same coverage offered by Plan F EXCEPT that it doesn’t pay for the Medicare Part B deductible. The good news is that the Part B deductible is relatively affordable at $233 per year in 2022 and that the monthly premiums for Plan G are typically lower than those for Plan F, which more or less makes up for this loss of coverage.
A secondary option for full-coverage supplement benefits for new enrollees is Plan D. Plan D provides the same coverage as Plan G EXCEPT that it doesn’t cover Medicare Part B excess charges.
Best basic-coverage Medicare Supplement plan
Plan B is a solid Medicare Supplement plan for those looking for basic coverage with a lower monthly premium. Plan B covers three of the most common types of out-of-pocket Medicare expenses to help protect seniors from big bills:
Medicare Part A deductible
Medicare Part A coinsurance
Medicare Part B coinsurance
Best lowest cost Medicare Supplement plans
For cost-conscious kupuna, there are a few options that may fit the bill.
New enrollees may be interested in a high-deductible Plan G (Plan F for older beneficiaries). High deductible plans come with the lowest monthly premiums but in exchange, a deductible of $2,490 must be met before benefits kick in for the rest of the year.
Plan N also comes with lower monthly premiums compared to other Medigap plans and it still covers most out-of-pocket Medicare costs:
Part A coinsurance and hospital costs
Part B coinsurance or copayment
First three pints of blood
Part A hospice care coinsurance or co-payment
Coinsurance for skilled nursing facility
Medicare Part A deductible
The main difference is that members may be required to pay a co-pay of up to $20 for some doctor’s office visits and a co-pay of up to $50 for a visit to the emergency room that doesn’t result in an admission to the hospital for inpatient care.
Most affordable Medicare Supplement plans for travelers
If you enjoy frequent travel outside of the U.S. or U.S. territories, it’s a good idea to choose a Medigap plan that covers foreign travel emergency expenses. Plans C, D, F, G, M, and N cover 80% of foreign travel emergency expenses but Plans M and N are the most affordable.
Best Medicare Supplement plans with out-of-pocket annual spending limits
Original Medicare does not have an out-of-pocket annual spending limit, which means the only way to get one is to switch to a Medicare Advantage plan or choose a Medicare Supplement plan that has one.
Both Plan K and Plan L come with annual out-of-pocket limits; $6,620 for Plan K and $3,310 for Plan L. Once the limit is reached, the plan pays 100% of all covered services and items for the remainder of the year.
It’s only natural that each kupuna has their own health care needs. The best way to find the best Medicare Supplement plan is to schedule a meeting with a licensed Medicare insurance agent in your area.
Our independent insurance agents are dedicated to assisting people on Medicare and those who are ready to transition from employer coverage to personal retirement coverage. We help kupuna understand their benefits options and apply for additional coverage, as needed. Because we represent all the major Medicare Advantage and supplement plans in Hawaii, we are able to offer unbiased advice; all at no cost to our clients.
At PBC, our clients are our number one priority and we look forward to getting to know you and your needs. Call us today at (808) 738-4500 to see how we may be of assistance.
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