Is a Medicare supplement (also known as Medigap) the right insurance plan for you? According to the U.S. Centers for Medicare and Medicaid Services (CMS), more than 63 million Americans have Medicare. If you're one of the millions enrolled in Parts A or B, take a look at dos and don'ts that can help you to decide whether a supplement will meet your healthcare coverage needs.

Do Consider Copays and Coinsurance

Even though your Original Medicare plan (Parts A and B) will cover many of your medical expenses, your care isn't completely free. Most plans require you to also pay for copayments and coinsurance. A copay is a specific or set amount you pay per service — such as a doctor's appointment or emergency room visit. The coinsurance is a percentage of the total for services or medical equipment. 

While Parts A and B may reduce your financial burden, copays and coinsurance can add up over time. If you have a chronic condition or just don't want the extra expenses involved in medical care (or for medical equipment), consider a supplement. Medigap covers the costs of these out-of-pocket healthcare expenses and can leave you copay- and coinsurance-free.

Don't Expect Medigap To Act Like Original Medicare 

A Medicare Supplement and Medicare may sound the same. But these are two different types of coverage. Again, Medigap covers costs your insurance (such as Parts A and B) won't pay for. You can only purchase Medigap if you already have Medicare Parts A (hospital insurance) and B (medical/doctor's office insurance). This means you can't use Medigap to pay for the primary costs of a hospital stay, a doctor's office visit, diagnostic testing, medical supplies, or similar services.

Do Expect To Pay a Premium

The premium is a monthly amount you pay for insurance. In your pre-Medicare days, your insurer charged a set amount per month for your employer-sponsored or self-pay coverage. When you started Medicare part A, you were suddenly premium-free. But when you added on Part B, you were charged a standard amount per month.

Like Part B, Medigap also comes at a cost to you. Instead of one standard premium, the price you pay for Medigap varies by insurance provider. The differences in price make it important to shop for a plan. Medigap policies are priced in three ways. These include community-rated (the same price for everyone, regardless of age), issue-age-related (priced by the age you are when you select the plan), and attained-age-related (priced on your current age). 

A community-rated plan won't increase just because you have another birthday. But the premium may go up for other reasons. Like this type of Medigap policy, an issue-age-related plan payment won't change because you get older. It can increase if the insurance company needs to increase the premium due to inflation. An attained-age-rated policy's price will change as you get older. This plan's premium may also go up due to inflation and other similar economic issues.

For more information on Medicare supplement plans, contact a company near you.