As you approach age 65 and start thinking about Medicare, you’ll probably encounter a lot of new terms. One that you may have heard of is Medigap Plan C.
While this particular Medicare Supplement insurance plan isn’t available to new Medicare beneficiaries, it’s still worthwhile to understand what it is and why it was discontinued. This will help you better grasp the other Medicare Supplement plans available and make an informed choice when choosing your Medicare Supplement coverage.
So, what exactly is Medigap Plan C, and what happened to it? Let’s take a closer look.
What was Medigap Plan C?
Plan C was one of the most comprehensive Medicare Supplement plans available. It covered almost all of your out-of-pocket expenses under Original Medicare. The only thing it didn’t cover was Part B excess charges, incurred when a doctor or other healthcare provider is legally permitted to charge more than the Medicare-approved amount.
You could think of Medicare Supplement Plan C as extra insurance for your healthcare costs. As helpful as it was, new Medicare enrollees can no longer purchase this supplement insurance plan. This Medicare Supplement plan has been discontinued for anyone enrolling in Medicare as of January 1, 2020.
Why Medigap Plan C Was Discontinued
Congress made changes to Medicare to encourage people to make smart healthcare decisions. One significant change involved discontinuing Medigap plans that covered the Part B deductible, including Plans C and F, for new Medicare enrollees.
Legislators reasoned that covering the deductible entirely could lead to people using healthcare services they may not need. This move also helped shift Medicare toward encouraging plans that shared costs with the beneficiary. However, you may still be able to get a Plan C policy if you were eligible for Medicare before January 1, 2020, but didn’t enroll.
Comparing Plan C to other Medicare Supplements
Although Medicare Supplement Plan C is no longer an option for those joining Medicare after 2020, understanding its benefits is helpful. When you compare Medigap plan coverage, use this knowledge to explore all your options.
Take a look at this table comparing Plan C with popular Medicare Supplement plans available today:
| Coverage | Medigap Plan C | Medigap Plan G | Medigap Plan N |
|---|---|---|---|
| Part A deductible | Covered | Not Covered | Not Covered |
| Part B deductible | Covered | Covered | Not Covered |
| Part A coinsurance | Covered | Covered | Covered |
| Part B coinsurance | Covered | Covered | Covered (except for copay) |
| Skilled Nursing Facility Coinsurance | Covered | Covered | Covered |
| Foreign Travel Emergency | Covered (up to plan limits) | Covered (up to plan limits) | Covered (up to plan limits) |
| Part B Excess Charges | Not Covered | Not Covered | Not Covered |
As you can see, Medigap Plan G is similar to the discontinued Plan C, but it doesn’t cover the Part A deductible. Meanwhile, Plan N offers slightly less comprehensive coverage, often at a lower premium. Medicare Supplement insurance plans K and L have different coverage options as well. Comparing them all will give you a better understanding of your choices and how they stack up.
Is Medigap Right for You?
Medigap can be a valuable supplement to Original Medicare. If you’re looking for more predictable healthcare costs and peace of mind knowing you won’t have large, unexpected medical bills, then a Medigap policy might be the right fit.
It’s also helpful to compare supplemental Medicare plans to see which ones best suit your needs. The primary disadvantage of Medicare supplement insurance is that it’s typically more expensive than Medicare Advantage (MA) plans.
To further aid in your decision-making process:
- Research what the best Medicare Supplement plans are based on user ratings.
- Look into cheap Medicare Supplements and compare premium costs.
- Review High Deductible Medicare Supplement Plan G to explore your cost-savings options.
- Weigh Medicare Plan G’s pros and cons.
- Examine the 7 Top Plan N Medicare benefits and decide if it suits you.
- Make a side-by-side comparison of Medicare Plan N vs Plan G.
- Understand what is the average cost of Medicare supplement insurance.
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Important Points to Remember
With Medicare changing and new rules in place, finding Medigap Plans (A to N) is an evolving process. For example, Medicare beneficiaries should understand their plan options, especially when comparing Plans G and N. Before deciding, you may want more information through your State Health Insurance Assistance Program, or SHIP, for personalized guidance.
Additional questions can be addressed by visiting Medicare.gov or calling 800-MEDICARE (800-633-4227, TTY 877-486-2048).
Choosing your Medicare coverage is a significant decision, but having the right resources and understanding your options can help you feel confident about selecting the best plan for your needs. Remember, while Medigap Plan C is no longer available to new Medicare beneficiaries, many other great plans provide robust coverage.
FAQs About Medigap Plan C
FAQ 1: What does Medigap C cover?
Medigap Plan C was a comprehensive plan covering most out-of-pocket costs associated with Original Medicare, such as Part A and Part B deductibles, coinsurance, skilled nursing facility care coinsurance, and foreign travel emergency medical expenses.
FAQ 2: Why was Medigap Plan C discontinued?
Congress passed legislation that eliminated Medigap plans covering the Part B deductible. Lawmakers felt that full coverage of this deductible could lead to the overuse of medical services. This impacted new Medicare enrollees starting January 1, 2020.
FAQ 3: What does plan C mean in Medicare?
Plan C refers to Medigap Plan C, a Medicare supplement insurance plan designed to help fill the coverage gaps in Original Medicare. This specific plan is no longer offered to individuals new to Medicare. However, you might still qualify for it if you were eligible for Medicare before January 1, 2020, but hadn’t signed up.
FAQ 4: What is the difference between Medicare Plan C and Plan G?
The key difference is Plan C covers both the Part A and Medigap Plan B deductibles, while Plan G does not cover the Part A deductible. This change became effective for new Medicare beneficiaries after January 1, 2020. Medigap Plan G is generally the closest option currently available if you’re looking for the most comprehensive coverage similar to what Plan C provides.
Conclusion
Even though Medigap Plan C is a relic of the past for new Medicare enrollees, it played an essential role in supplementing healthcare coverage for many people. Its discontinuation ushered in an era of Medicare Supplement insurance focused on cost-sharing and smarter healthcare choices. Today’s options, like Medigap Plan G or N, provide valuable coverage and benefits. Individuals approaching Medicare eligibility have a variety of options to choose from based on their needs and budget.