What is Medicare Supplement Insurance?
Medicare Supplement Insurance, also called Medigap, is additional health insurance that is purchased from a private insurance agency to cover the items (or gaps) not covered by the Original Medicare program.
While it is provided through private companies, its plans are still set and regulated by the federal government to ensure that all Americans gain access to the same benefits wherever they are in the country. Because the state cannot shoulder all of the healthcare costs, it kept most of the basic services under Original Medicare and then moved the other essentials to Medigap, where members are to pay a minimal fee.
The cost of a Medicare Supplement varies depending on the provider, so people can shop around for which agencies in the area provide the best packages. All the basic elements are the same across the board, though some insurers might offer additional premium products and services.
What Medicare Supplement Insurance Covers
Medigap plans cover some of the healthcare products and services that Original Medicare does not. These can include copayments, coinsurance, and deductibles. How it works is that Medicare pays its share of expenses according to its approved limit, and then Medigap takes care of the remainder, based on its limit. In some cases, members end up paying what is left of the expenses not covered (which is minimal) or with absolutely zero billing.
The Cost of Medicare Supplements
Insurance agencies charge different premium fees for the same Medigap policies—and this is accepted. The company might have other add-on features or provide higher-end services to its clients to justify the higher fees. This is why you need to shop around and compare policies that are available in your area. Some states allow Medicare members to enroll in a unique type of Medigap policy, called Medigap SELECT, which gives you the freedom to change your mind and move to a standard Medicare Supplement plan, as long as it’s within 12 months.
Types of Medigap Plans
There are 10 Medicare Supplements, as mandated by the federal government, each with varying degrees of coverage on the same set of healthcare products and services. The generally cheapest Medigap plan is Plan A, while the most expensive one (but also the most comprehensive and inclusive) is Plan F. The plans are labeled alphabetically: A, B, C, D, F (HDF), G, K, L, M, and N.
See our comprehensive description of Medicare Supplement plans here. What Medicare Supplement Plans are Available?
5 Things To Remember About Medigap Policies
1. Effective January 1, 2020, Medicare Supplement plans offered to new Medicare members will not be allowed to shoulder the Part B deductible. That said, Plans C and F will no longer be given to those who enroll on or after the said date. If you already have either of these policies before January 1, 2020, you are still allowed to keep your existing plan. This also applies if you were eligible for Original Medicare prior to the said date.
2. A Medicare Supplement plan covers just one person, so spouses should purchase separately.
3. During the Open Enrollment Period, you can purchase any Medigap plan of your choice from any insurance provider in your area. During this time, you are guaranteed approval for any policy and will not be subjected to medical underwriting.
4. Standardized Medigap plans can be renewed even if you have problems with your health. As long as you stay enrolled and promptly pay the premium fees, the insurance provider cannot cancel your plan.
5. In order to qualify for any Medigap plan, you will to be enrolled in both Original Medicare Part A and Part B.
