Which Medicare insurance plan automatically updates its benefits with Medicare changes?

The correct answer is that a Medicare supplement insurance plan, also known as Medigap, automatically updates its benefits with Medicare changes. This type of plan is designed to fill the gaps in Original Medicare (Part A and Part B) coverage. Whenever there are updates to Medicare, such as increases in cost-sharing or changes in coverage, Medigap plans adjust their policies accordingly.

Medicare supplement insurance plans must adhere to federal and state laws that protect consumers, which include the requirement to automatically coordinate with changes in Original Medicare. This means beneficiaries can have peace of mind knowing that as Medicare benefits evolve, their Medigap coverage will adjust to ensure they continue to receive comprehensive healthcare benefits without needing to change plans frequently.

In contrast, Medicare Advantage plans have their own benefits that are determined by private insurers and do not necessarily reflect updates in Original Medicare. Medicare Part B primarily deals with outpatient services and has its own structure. Medicare Part D is specifically for prescription drug coverage and may have distinct changes but doesn’t automatically adjust benefits in the same way that Medigap does. Each type of plan operates under different guidelines, which is why understanding the function of Medicare supplements is critical for ensuring continuous coverage.