Understanding more about Medicare Supplements (Medigap)

Medicare Supplement Insurance, also known as Medigap, is private health insurance that can help fill in the gaps in coverage that Original Medicare (Part A and Part B) doesn’t cover, such as deductibles, copayments, and coinsurance.

Here are some key points to understand about Medicare Supplement Insurance:

Medigap policies are standardized: Medigap policies are standardized by the federal government, which means that a Plan F policy offered by one insurance company will offer the same benefits as a Plan F policy offered by another insurance company.
Medigap policies are sold by private insurance companies: You can purchase a Medigap policy from any insurance company that is licensed to sell them in your state.
You must have Original Medicare to purchase a Medigap policy: You cannot purchase a Medigap policy if you have a Medicare Advantage plan (Part C).
You pay a monthly premium for Medigap coverage: In addition to your Part B premium, you will also pay a monthly premium for your Medigap coverage.
Medigap policies do not cover prescription drugs: You will need to purchase a separate Part D prescription drug plan if you want prescription drug coverage.
Medigap policies do not cover all out-of-pocket costs: While Medigap policies can help cover some out-of-pocket costs, such as deductibles and coinsurance, they do not cover all costs. For example, they do not cover long-term care or dental or vision care.

It’s important to understand your Medicare coverage options and choose the plan that best meets your needs and budget. If you’re considering a Medigap policy, make sure to compare plans and costs from multiple insurance companies before making a decision.

Plans that are not Medigap

Before buying Medigap, it is particularly important to know of Medicare insurance that is not Medigap. Those insurances that are not Medigap include Medicare Advantage plans, Medicare Prescription drugs, Medicaid, Union plans, Tricare, and long-term care insurance among other types of insurance.

Dropping Medigap policy

If you feel like you need to drop your Medigap plans or policies, you must do your timing very well. This is important because you will be charged a penalty for late enrollment. If you happened to drop the plan and the coverage was not creditable drug prescription, you will be charged a penalty. Therefore, it is important to always be careful when you are enrolling or dropping a Medicare coverage plan. Wait until it is the right time for you to enroll or drop out.