Medicare Supplement (Medigap) Plan D

by David Bynon, last updated

What is Medicare Supplement Plan D?

Medicare Supplement Plan D is one of the ten standardized Medigap plans, which is also known as Medicare Plan D or Medigap Plan D. It is often confused with Medicare Part D, which is your prescription drug coverage. A good way to remember the difference is that only Medicare has parts. Private insurance options are described as plans.

To remove any confusion, we’ll call it Medicare Supplement Plan D or Medigap Plan D.

What Does Medicare Supplement Plan D Cover?

Medicare is not full-coverage healthcare. In fact, there are nine coverage gaps baked into the Original Medicare. Generally speaking, Medicare pays about 80% of your major medical costs and you pay the other 20% out-of-pocket. To help with your 20% share, you can buy a Medigap plan.

Find Plans in your area with your ZIP Code

To fully understand what Medicare Supplement Plan D covers, let’s first look at the nine gaps in Medicare. They include:

  1. Medicare Part A Coinsurance & Hospital Costs
  2. Medicare Part A Skilled Nursing Facility Coinsurance
  3. Medicare Part A Deductible
  4. Medicare Part A Hospice Care Coinsurance or Copayment
  5. Medicare Part B Deductible (annual)
  6. Medicare Part B Coinsurance or Copayment
  7. Medicare Part B Excess Charges
  8. Blood (first 3 pints)
  9. Foreign Travel Emergency

In Original Medicare, your coverage is divided into two different parts. Part A is your hospital coverage and Part B covers medical services. The deductibles, copayments, coinsurance, and other costs listed above are what you pay when you use your Medicare benefits.

Medigap Plan D offers excellent hospital coverage, but it leaves you to pay the annual Medicare Part B deductible and Part B excess charges. However, it does pay your Part B coinsurance when you see a doctor, have lab tests done, or use other outpatient medical services.  It also covers your first three pints of blood, and it offers foreign travel emergency coverage (with a 20% copayment).

Is Medicare Plan D a Good Plan?

As long as you understand that your annual Part B deductible ($198 per year at the 2020 rate) and excess charges are coming out of your pocket, Medigap Plan D is a great plan. However, if you’re open to the idea of paying a little bit more out of your own pocket, there is another plan with similar coverage that can save you a lot of money on your premiums. It’s Plan N.

Just like Medigap Plan D, Plan N does not pay you Part B deductible or your excess charges. Where you save money with Plan N is by also paying a small copay (up to $20) when you see your doctor or use the emergency room (up to $50). Other than that, the two plans are identical.

Plan D works well for people with a chronic health condition, but see doctors that accept Medicare-assignment (no excess charges).  Plan N works well for people with no chronic health issues who manage their good health through annual preventative health visits, which are covered 100% by Medicare.

Need to speak with a professional? Are you ready to see the prices? Call 1-855-728-0510 (TTY 711) and speak with a licensed HealthCompare insurance agent. There’s no obligation, and they offer more plan options than any other national agency.

Find Plans in your area with your ZIP Code

Was this article helpful?

Related Articles