As most of us have fixed earnings post-retirement, our health care needs and costs increase as we age. These expenses can harm our monthly budget, and make it difficult for us to gather funds for unforeseen health complications.

Medicare is a federal program that provides health care coverage to American citizens. It provides affordable health care benefits to senior citizens (aged 65 and older) as well to those who meet specific criteria laid down by the government.

That is where Medicare supplement plans are handy. These supplements are a type of private coverage that bridge the gap between two Medicare plans.

Following are some advantages of Medicare supplement plans that you should know:

• Medicare supplements cover expenses that are beyond the scope of original Medicare Part A and Part B.
• These supplement plans cover 100% of the expenses once the original Medicare plan has covered its share.
• They can cover copayments, deductibles, coinsurance, and emergencies during foreign travel as well.

Here are some factors to keep in mind while choosing the right Medicare supplement plans along with your original Medicare:

• Choices:  The federal government provides a total of ten Medicare plan supplements — A, B, C, D, E, F, G, K, L, M, and N. Medicare supplements are standardized which is why they can be clubbed with the original Medicare plan. Thus, a Medicare plan A with supplement F sold by one insurer will cover the same things as an A and F plan sold by another insurer.
  The Medicare supplement policies differ only on the grounds of deductible; some cover more costs, whereas other Medicare supplements require higher cost sharing. Hence, based on the affordability, it is necessary to evaluate and deduce which plan meets your medical needs.
  Following are some of the most common supplements chosen by policyholders:
  Plan A: This is the basic plan that pays for coinsurance, and copayments excluding nursing facility costs.
  Plan F: This is the most popular supplement plan that pays for all copayments, deductibles, coinsurance, and even foreign travel to treat a health condition.
  Plans K and L: These Medicare supplement plans are the only ones with an out-of-pocket limit.
• Compare:  The official website of federal government lists and compares ten different Medicare supplement plans. Compare these plans based on the deductible, percentage of cost-sharing for doctor visits, lab tests, and outpatient services. You also need to consider the coinsurance cost of hospital stays after getting treated.
• Out-of-pocket costs:  One also needs to consider cost-sharing or out-of-pocket limits while choosing a supplement plan. For instance, plans K and L have higher cost-sharing and out-of-pocket limit as compared to other Medicare supplement plans. However, some other plans cover 100 percent of Medicare coinsurance. Out-of-pocket limits and cost-sharing percentage keep changing every year based on inflation.
  It is important to remember that Medicare supplement plans do not cover prescription drugs, vision, and dental costs.
• Cost of buying supplement plans:  According to a survey, the average cost of purchasing a Medicare supplement plan is approximately $185.
  Here are three different pricing considerations you need to know while choosing a supplement plan:
  Issue-age related:  These policies are priced based on your age. It offers cheaper premiums for younger applicants.
  Community – rated:  It is the same monthly policy for everyone, regardless of their age.
  Attained-age-rated:  The cost of these plans is based on the policy holder’s current age; these expenses can increase as the policyholder grows old .
  Hence, ask potential insurer about their pricing system before choosing a policy. This way, you will know the approximate premium costs even as you grow old.
• Alternate options:  As discussed earlier, a Medicare supplement plan does not cover prescription drugs. Hence, you might sign up for the Medicare Part D plan, which is a Medicare Advantage plan that provides all-in-one coverage. It is sold by insurance companies or through HMOs and PPOs.
• Call a broker:  It can be overwhelming and tedious to choose a Medicare supplement plan given that there are so many choices. Call a broker as they will be able to help you choose the right plan based on your medical condition, age, and affordability. You also need to keep in mind that you will pay the same premium amount regardless of whether you buy a policy through a broker or independently. A good broker should be able to provide you with the best Medicare supplement plans that suit your lifestyle. It is advisable to look for an independent broker who is not associated with a specific insurance company.