Preparing For Medicare Open Enrollment: 2021 Medicare Supplement Plan Rates

Original Medicare offers great health benefits for people ages 65 and older, but there are some expenses it does not fully cover. Medicare Part B covers 80% of most medical costs, leaving beneficiaries to pay the remaining 20% out-of-pocket. These out-of-pocket costs can add up, which is why many Medicare beneficiaries buy a Medicare Supplement Plan. These plans pay for what Original Medicare does not, and can end up saving you hundreds of dollars each year. CMS has announced that Medicare Part B costs are going up next year, but luckily the costs for most Medicare Supplement Plans will remain the same, with only a few changing. Find out just how much you can save before Medicare Open Enrollment is over!

What Are Medicare Supplement Plans?

older caucasian man with a button up on and a caucasian woman with lab coat checking on him.
Medicare Supplement Plans cover costs not covered by Original Medicare such as help with nursing facility costs. 

Medicare Supplement Plans are supplemental insurance policies sold by private insurance companies. They help pay for things that are not covered by Medicare Parts A and B. There are 10 different Medicare Supplement Plans, each with different levels of coverage. Some costs that might be covered include: 

  • Parts A and B deductibles
  • Coinsurance or copays for parts A and B
  • Part B excess charges
  • Skilled nursing facility costs after you run out of Medicare-covered days
  • Hospital costs after you run out of Medicare-covered days 
  • Health-related costs when traveling outside the U.S.
  • Blood (first 3 pints)

How Much Are Premiums?

The exact amount for monthly premiums can vary by individual policy. Insurance companies can set these rates in three ways:

  • Community rated- Monthly premiums are the same for everyone that purchases a plan, regardless of their age. Your premium is not based on your age.
  • Issue-age rated- Monthly premiums are based on the age you are when you first purchase the plan (younger buyers will have lower premiums). Premiums do not increase as you get older.graph going upward with age on the bottom and price written on the side
  • Attained-age ratedMonthly premiums are based on the age you are when you purchase the plan: the younger you are, the lower your premium will be. Your premium will go up as you get older.

2021 Price Changes

There will be changes to prices in 2021 for some Medicare Supplement Plans; these changes will mainly be to deductible amounts and out-of-pocket limits. Medicare Plan G, the only plan that has a high-deductible option (since Plan F is no longer available, unless you purchased it before January 1, 2020), will see a rise in its deductible amount. For 2021, the deductible for these plans is $2,370. 

Medicare Supplement Plans K and L have out-of-pocket limits. This is the maximum out-of-pocket amount that you will have to pay for covered services. After you reach the limit, your plan will pay for 100% of covered services for the rest of the year. For 2021:

  • Plan K’s out-of-pocket limit is $6,220
  • Plan L’s out-of-pocket limit is $3,110

Finding The Best Plan

The best things about Medicare Supplement Plans are that you will save money on out-of-pocket Medicare costs, and that you will not be held back by network restrictions. With a Medicare Supplement Plan, as long as you see a doctor that accepts Medicare, you will be covered by your plan. If you are interested in looking into a Medicare Supplement Plan, EZ.Insure will explain all of them to you and compare plans within minutes. We will assess your health and financial needs, discuss all the options, and guide you in the right direction. Our goal is to help you find the best plan and save you the most money, which is why our services are free. To get instant quotes, enter your zip code in the bar above, or to speak with one of our licensed agents, call 888-753-7207.