Before Medicare regulations changed in 2010, seniors had access to a variety of Medigap (Medicare Supplement) plans, each designed to fill specific gaps left by Original Medicare. Among these was Medicare Supplement Plan E, a mid-level option that offered more than basic coverage but didn’t include some of the extra benefits found in higher-tier plans.
Though Plan E is no longer available to new enrollees, individuals who signed up before June 1, 2010 can continue to benefit from this plan. This guide will explain what Plan E covers, its key strengths and weaknesses, and what seniors should consider if they still hold this coverage.
What is Medicare Supplement Plan E?
Medicare Supplement Plan E was part of the standardized Medigap offerings designed to help pay for out-of-pocket costs not covered by Original Medicare (Parts A & B).
Plan E provided solid foundational coverage, addressing common expenses like hospital coinsurance, hospice care, and skilled nursing facility coinsurance. However, unlike some of the more comprehensive plans, Plan E did not cover things like Medicare Part B excess charges or foreign travel emergencies.
Due to federal law changes, Plan E was phased out for new enrollees after June 1, 2010. If you were enrolled before that date, you are allowed to keep your Plan E coverage, but new enrollees cannot sign up for Plan E.
Coverage Provided by Medigap Plan E
Here's a breakdown of what Plan E included:
Basic Benefits:
- Medicare Part A Coinsurance
- Medicare Part B Coinsurance
- First 3 Pints of Blood
- Part A Hospice Care
- Skilled Nursing Facility Care Coinsurance
- Medicare Part A Deductible
Note: Medicare Part B Deductible and Medicare Part B Excess Charges are not covered.
Key Benefits of Medicare Supplement Plan E
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Core Coverage: Plan E was designed to offer coverage for your core needs which are gaps from Original Medicare.
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Part A Deductible Coverage: Helps to reduce high hospital costs by covering the Part A deductible.
- Predictable Costs: Helps to reduce many common out-of-pocket expenses for routine care.
Limitations of Medicare Supplement Plan E
- Discontinued for New Enrollment: Medigap Plan E is no longer offered for new enrollees. If you are currently enrolled in Plan E and you leave the plan, you will not be able to come back.
- No Coverage for Part B Excess Charges: If your provider charges more than the Medicare approved rates, you must pay the difference.
- No Foreign Travel Emergency Coverage: Plan E does not offer protection for medical emergencies abroad.
Should You Keep Your Medigap Plan E?
If you're currently enrolled in Medigap Plan E, as long as you keep paying your premiums you are allowed to stay with Plan E. That being said, Plan E has been phased out, with new standardized Medigap Plans available. When deciding, you should consider the following:
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Are Your Premiums Reasonable Compared To The Coverage You Receive?
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Do You Anticipate Needing Additional Coverage Benefits?
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Would a Modern Medigap Plan Such as Plan G Offer Sufficient Coverage At a Lower Cost?
Remember: If you drop Plan E, you cannot return to it.
Final Thoughts on Medicare Supplement Plan E
Medicare Supplement Plan E offers dependable core coverage for seniors who enrolled before it was discontinued. While it lacks some of the extra benefits found in higher-tier plans, it still protects against many common healthcare costs.
If you're currently enrolled, reviewing your healthcare needs and premium costs annually is a smart practice. Should your circumstances change, it may be worth exploring other Medigap options—keeping in mind that eligibility and underwriting rules will apply.