December 6, 2021
4 minute read

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

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%

 

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© 2022 HealthMarkets Insurance Agency. All rights reserved.

To send a complaint to Medicare, call 1-800-MEDICARE (TTY users should call 1- 877-486-2048), 24 hours a day/7 days a week). If your complaint involves a broker or agent, be sure to include the name of the person when filing your grievance.

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 or 1-800-MEDICARE (TTY users should call 1- 844-704-7357), 24 hours a day/7 days a week, to get information on all of your options.

Attention: This website is operated by HealthMarkets Insurance Agency, Inc. and is not the Health Insurance Marketplace® website. HealthMarkets Insurance Agency, Inc. is licensed as an insurance agency in all 50 states and DC. Not all agents are licensed to sell all products. Service and product availability varies by state. Sales agents may be compensated based on a consumer’s enrollment in an insurance plan. No obligation to enroll. Agent cannot provide tax or legal advice. Contact your tax or legal professional to discuss details regarding your individual business circumstances. Our quoting tool is provided for your information only. All quotes are estimates and are not final until consumer is enrolled. Medicare has neither reviewed nor endorsed this information.

HealthMarkets Insurance Agency offers the opportunity to enroll in either QHPs or off-Marketplace coverage. Please visit HealthCare.gov for information on the benefits of enrolling in a QHP. Off-Marketplace coverage is not eligible for the cost savings offered for coverage through the Marketplaces.

This information is not a complete description of benefits. Call the Plan’s customer service phone number for more information.

47720-HM-122

© 2022 HealthMarkets Insurance Agency. All rights reserved.

To send a complaint to Medicare, call 1-800-MEDICARE (TTY users should call 1- 877-486-2048), 24 hours a day/7 days a week). If your complaint involves a broker or agent, be sure to include the name of the person when filing your grievance.

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 or 1-800-MEDICARE (TTY users should call 1- 844-704-7357), 24 hours a day/7 days a week, to get information on all of your options.

Attention: This website is operated by HealthMarkets Insurance Agency, Inc. and is not the Health Insurance Marketplace® website. HealthMarkets Insurance Agency, Inc. is licensed as an insurance agency in all 50 states and DC. Not all agents are licensed to sell all products. Service and product availability varies by state. Sales agents may be compensated based on a consumer’s enrollment in an insurance plan. No obligation to enroll. Agent cannot provide tax or legal advice. Contact your tax or legal professional to discuss details regarding your individual business circumstances. Our quoting tool is provided for your information only. All quotes are estimates and are not final until consumer is enrolled. Medicare has neither reviewed nor endorsed this information.

HealthMarkets Insurance Agency offers the opportunity to enroll in either QHPs or off-Marketplace coverage. Please visit HealthCare.gov for information on the benefits of enrolling in a QHP. Off-Marketplace coverage is not eligible for the cost savings offered for coverage through the Marketplaces.

This information is not a complete description of benefits. Call the Plan’s customer service phone number for more information.

47720-HM-122

© 2022 HealthMarkets Insurance Agency. All rights reserved.

To send a complaint to Medicare, call 1-800-MEDICARE (TTY users should call 1- 877-486-2048), 24 hours a day/7 days a week). If your complaint involves a broker or agent, be sure to include the name of the person when filing your grievance.

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 or 1-800-MEDICARE (TTY users should call 1- 844-704-7357), 24 hours a day/7 days a week, to get information on all of your options.

Attention: This website is operated by HealthMarkets Insurance Agency, Inc. and is not the Health Insurance Marketplace® website. HealthMarkets Insurance Agency, Inc. is licensed as an insurance agency in all 50 states and DC. Not all agents are licensed to sell all products. Service and product availability varies by state. Sales agents may be compensated based on a consumer’s enrollment in an insurance plan. No obligation to enroll. Agent cannot provide tax or legal advice. Contact your tax or legal professional to discuss details regarding your individual business circumstances. Our quoting tool is provided for your information only. All quotes are estimates and are not final until consumer is enrolled. Medicare has neither reviewed nor endorsed this information.

HealthMarkets Insurance Agency offers the opportunity to enroll in either QHPs or off-Marketplace coverage. Please visit HealthCare.gov for information on the benefits of enrolling in a QHP. Off-Marketplace coverage is not eligible for the cost savings offered for coverage through the Marketplaces.

This information is not a complete description of benefits. Call the Plan’s customer service phone number for more information.

47720-HM-122