Medicare supplement policies include an extra 365 days of hospitalization coverage. Original Medicare includes no more than 150 days of hospital coverage at a time, so the additional 365 days is a major benefit of supplement plans. Most Medicare supplement plans include foreign travel emergency coverage up to $50,000, lifetime max. If your retirement plans include international travel, it is highly recommended that you purchase travel insurance through a company such as GeoBlue.
The rule of thumb with Medicare supplement plans is that if Medicare covers a particular claim, the supplement will cover it as well. If Medicare does not cover a claim neither will the supplement. An example would be receiving care from a provider that is not contracted with Medicare (over 90% of all providers are contracted with Medicare.) In this example Medicare will deny the claim, as will the supplement insurance company.
Plan G Medicare supplement policies offer the richest benefits. To purchase a supplement plan you must first enroll in Medicare A and B. Once enrolled in Medicare A and B you may purchase a G plan. G plans allow you to see any Medicare contracted provider in the country. You can move out of state and keep the plan. The only out of pocket expense is the annual Part B deductible which is less than $250. After purchasing a G plan it is recommended that you purchase a Part D prescription plan. Prices range from $7-$120 a month. The average is around $35 a month. For many individuals the under $10 plans are just fine. Even if you take no medications you should purchase the least expensive Part D plan available. The federal government will penalize you if you don’t enroll in Part D when it is first available to you… and it is a lifetime penalty of 1% for each month not covered.