What Is Medicare Supplement Plan D and What Does It Cover?

December 6, 2021
•
4-minute read

Are you looking to learn more about the Medigap supplement plan, Medicare Plan D? Or perhaps you’re searching for a drug prescription plan, known as Medicare Part D? It is easy to get the two confused. HealthMarkets explains the differences between them and how selecting a Medicare Supplement plan could be the right choice for you.

What is Medicare Supplement Plan D?

Medicare Plan D is a Medicare Supplement plan, also known as a Medigap plan. Plan D is one of the 10 standardized Medicare Supplement plans available in most states: A, B, C, D, F, G, K, L, M, and N. The names “Medicare Plan D”, “Medicare Supplement Plan D”, and “Medigap Plan D all mean the same thing. But these plans are not the same thing as Medicare Part D, which is for prescription drug coverage. Medicare Supplement Plan D policies do not cover prescription drugs.

Medicare Supplement “Plan D” and Medicare “Part D” Differences

Although both Medicare Plan D (Medicare Supplement) and Medicare Part D (prescription drug coverage) are used to help fill coverage gaps in Original Medicare (Medicare Part A and Medicare Part B), these types of coverage serve different functions.

Here’s a look at the differences between Medicare Supplement Plan D and Medicare Part D.

Medicare Supplement Plan D

Medicare Part D
  • Helps play some of the costs original Medicare doesn’t cover, which are mostly copays, coinsurance, and deductibles
  • Only works with Original Medicare
  • Must have both Parts A and B to enroll
  • Provides prescription drug coverage to Medicare beneficiaries
  • A standalone Part D plan works with Original Medicare, but prescription drug coverage can be included in a Medicare Advantage (Part C) instead.
  • Can have either Part A or Part B to enroll

Note: You can have Original Medicare, a standalone Part D plan, and Medicare Supplement Plan D all at the same time. But you can’t enroll in Medicare Advantage and a Medicare Supplement plan at the same time.

Why Get Medicare Supplement Plan D?

Enrolling in Medicare Supplement Plan D can help you save money on Original Medicare Part A and Part B coinsurance/copayments. For example, Part B charges a 20% coinsurance for covered services after you’ve met your Part B deductible ($233 in 2022).1 If you have total medical charges are $20,000, for instance, your coinsurance would be $4,000. The higher your total charges, the higher your coinsurance, and there’s no limit to how much you can be charged under Original Medicare. With Medicare Plan D, you pay a monthly premium each month, and the plan covers your Part B coinsurance at 100%.2

Here are some other reasons to get Medigap Plan D:

  • Foreign travel emergency benefits. Plan D covers 80% of the cost for qualified emergency care you receive in a foreign country after you pay a $250 deductible. You’re covered for the first 60 days of foreign travel with a lifetime limit of $50,000.3
  • No networks. You can visit any provider nationwide who accepts Medicare.
  • Guaranteed renewable. Your plan can’t be canceled as long as you continue to pay your premium.

How to Get Medigap Plan D4

Medigap plans are only sold through private insurance companies. The best time to get Medigap Plan D (or any Medicare Supplement plan) is during your Medigap Open Enrollment Period (OEP) because you won’t have to go through medical underwriting.

  • Your Medigap OEP last for six months and begins the month you turn 65 and are enrolled in Part B.
  • You can get any plan that’s available in your area regardless of your health if you enroll during your OEP.
  • If you enroll outside of your OEP, you may be denied a policy because of your health unless you have guaranteed issue rights.

Learn more about buying a Medicare Supplement plan that fits your needs.

Medigap Changes: How Will Plan D Be Affected?

Medicare Supplement Plans C and F will not be sold to anyone eligible for Medicare on or after January 1, 2020.5 But the good news is Plan D is a suitable Plan C replacement. Why? Medigap Plans C and D offer the same benefits, except that Plan C covers the Part B deductible ($233 in 2022) and Plan D does not.1

Why should this matter to you? If you’re eligible for Medicare before 2020, you may want to consider getting Plan C. If you do, you will be “grandfathered in,” which means you can keep Plan C for as long as you continue to pay the premiums. Plan C was one of the guaranteed issue plans insurance companies offered. But starting 2020, Medicare Plan D replaced Plan C as one of the guaranteed issue plans for new enrollees.

If coverage for the Part B deductible isn’t a priority, you can buy Medigap Supplement Plan D now or whenever you become eligible for Medicare. Your monthly premium for Plan D may be less since it does not cover your Part B deductible. The average monthly premiums can vary, depending on your state of residence. In 2021, it ranged between $196-265 for Plan D and $202-280 for Plan C for a nonsmoking male living in Orlando, Florida.6

Medigap Plan D Benefits

You can use the chart below to compare the benefits of Medicare Supplement Plans D and C.2

Medigap Benefits

Plan C

Plan D

Part A coinsurance and hospital costs up to an extra 365
days after Medicare benefits are used up

100%

100%

Part B coinsurance or copayment

100%

100%

Blood: first 3 pints

100%

100%

Part A hospice care coinsurance or copayment

100%

100%

Skilled nursing facility (SNF) care coinsurance

100%

100%

Part A deductible

100%

100%

Part B deductible

100%

No

Part B excess charge

No

No

Foreign travel exchange up to plan limits

80%

80%

You must continue to pay your Medicare Part B premium when you enroll in a Medicare Supplement plan, a standalone Medicare Part D drug plan, or a Medicare Advantage plan.

1. “Medicare costs at a glance.” Medicare.gov. Retrieved from https://www.medicare.gov/your-medicare-costs/medicare-costs-at-a-glance Accessed November 30, 2021. | 2. “How to compare Medigap policies.” Medicare.gov. Retrieved from https://www.medicare.gov/supplements-other-insurance/how-to-compare-medigap-policies Accessed June 14, 2021. | 3. “Medigap & travel.” Medicare.gov. Retrieved from https://www.medicare.gov/supplements-other-insurance/medigap-travel Accessed June 14, 2021. | 4. “When can I buy Medigap?” Medicare.gov. Retrieved from https://www.medicare.gov/supplements-other-insurance/when-can-i-buy-medigap Accessed June 14, 2021. | 5. “What’s Medicare Supplement Insurance (Medigap)?” Medicare.gov. Retrieved from https://www.medicare.gov/supplements-other-insurance/whats-medicare-supplement-insurance-medigap Accessed June 14, 2021. | 6. “Supplement Insurance (Medigap) plans in Florida.” Medicare.gov. Retrieved from https://www.medicare.gov/medigap-supplemental-insurance-plans/#/m/plans?fips=12095&zip=32789&year=2021&lang=en Accessed November 30, 2021.

Medicare
Medicare Options
Query card

Uninsured? We can help.

We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov, 1-800-MEDICARE, or your local State Health Insurance Program to get information on all of your options.

Related content

  1. Medicare questions: 18 answers to simplify enrollment
    4-minute read

    Got Medicare questions? You’re not alone. Whether you’re getting ready to enroll, exploring coverage options, or wondering about costs, Medicare has a lot of moving parts to figure out. If you’re looking for a little help to make enrollment easier, check out the answers to these 18 most commonly asked Medicare questions. 1. Who qualifies for Medicare? To qualify for Medicare, you need to be a U.S.

  2. Medicare Part A, B, C, and D: What you need to know
    4-minute read

    Medicare Parts A, B, C, and D are the four distinct types of coverage available to eligible individuals. Each Medicare part covers different healthcare-related costs. While Medicare Part A and Medicare Part B are administered by the Centers for Medicare & Medicaid Services (CMS), Medicare Part C and Medicare Part D are managed by private insuranceprivate insuranceHealth care coverage provided by a

  3. Dual eligibility: What’s it all about?
    7-minute read

    You may be able to qualify for both Medicaid and Medicare, something known as dual eligibility. Here’s some information to help you understand. What is Medicare? What is Medicaid? What’s the difference between Medicare and Medicaid? Can I be eligible for both Medicare and Medicaid? What’s a D-SNP, exactly? What is partial dual eligibility? How does a D-SNP work? Could I also be eligible for more t

View more articles