What is Medicare Supplement (Medigap) Insurance?
A Medicare Supplement or Medigap plan, sold by private companies, can help pay some of the health care costs that Original Medicare doesn't cover, like co-payments, coinsurance, and deductibles.
If you have Original Medicare and you buy a Medigap policy, Medicare will pay its share of the Medicare-approved amount for covered health care costs. Your Medigap policy pays its share of charges remaining depending on the plan. You may receive a "balance bill" for any remaining costs. Premiums vary by Plan type.
A Medigap policy is different from a Medicare Advantage (MA) Plan. MA plans pay Medicare's portion of the approved amount, and you pay the plan defined co-pay or co-insurance. Again, premiums vary by plan type. Medigap plans cannot be used with Medicare Advantage products.
What you need to know about Medicare Supplement policies
- You must have Medicare Part A and Part B.
- If you have a Medicare Advantage Plan, you can switch to a Medicare Supplement insurance policy, but make sure you can leave the Medicare Advantage Plan before your Medicare Supplement insurance policy begins Generally from 10/15-3/31.
- You pay the private insurance company a monthly premium for your Medicare Supplement insurance policy in addition to the monthly Part B premium that you pay to Medicare.
- A Medigap policy only covers one person. If you and your spouse both want Medigap coverage, you'll each have to buy separate policies. Some carriers offer minimal discounts.
- You can buy a Medicare Supplement insurance policy from any insurance company that's licensed in your state to sell one.
- Any standardized Medicare Supplement insurance policy is guaranteed renewable even if you have health problems. This means the insurance company can't cancel your Medicare Supplement insurance policy as long as you pay the premium.
- Medicare Supplement insurance policies sold after January 1, 2006 aren't allowed to include prescription drug coverage. If you want prescription drug coverage, you can join a Medicare Prescription Drug Plan (Part D).
- Beginning January 1, 2020 benficiaries with a Part A effective date of this date or later, are no longer allowed to enroll in an "F" plan.
- It's illegal for anyone to sell you a Medigap policy if you have a Medicare Advantage Plan, unless you're switching back to Original Medicare. Individuals below the Federal Poverty Level are also NOT supposed to be enrolled in Med Supp plans.
- Some carriers offer "Select" plans with limited or preferred provider network access.
Information obtained from www.medicare.gov
By contacting the phone number on this website you will be directed to a licensed agent.