Medicare - What Is A Medigap Policy?

Many American’s are totally confused when becoming eligible for Medicare on what their options are and then which plans to choose from. All the TV ads, newspaper ads, and even the abundance of US Mail you receive still doesn’t clarify the subject and sometimes even adds to the confusion. Additionally many folks already on Medicare still really don’t know what type plan they have or their options to change plans.

A “Medigap” policy is basically just another name for a "Medicare Supplement” policy.

A Medicare Supplement (Medigap) policy is a standardized supplemental health plan that pays for part or all of Medicare related health care costs that you would otherwise pay out of pocket if you just had Original Medicare. Medicare Supplement policies only work with Original Medicare Parts A and B, which is Medicare coverage through the federal government. So need to have Part A & Part B first if you want to enroll in a Medicare Supplement policy.
Note: If you plan to get your Medicare benefits through a private insurance company, called a Medicare Advantage Plan (also known as Medicare Part C), then you cannot additionally purchase a Medicare Supplement policy. To be very clear, you cannot legally have both type policies at the same time.

Medicare Supplement policies “supplement" Original Medicare costs. Those type of out of pocket costs can include deductibles, coinsurance charges, and copays). Medicare Supplement policies do not usually pay for items not covered directly by Medicare. However, some Medicare Supplement policies do cover some emergency care received in foreign countries, which is typically not covered by Medicare.  

Medicare Supplement policies are regulated by each state, usually under a department of insurance or a similar state agency. This means that some aspects of Medicare Supplement policies work differently in each state. Medicare Supplement policies are still subject to some federal regulations, but different states may have their own Medicare Supplement rules as well.

There are different types of Medicare Supplement policies that you can purchase. Private insurance companies can offer ten standardized Medicare Supplement policies in most states: Plans A, B, C, D, F, G, K, L, M, and N. Note that insurance companies do not have to offer all ten Medigap policies. 

Important Note: Plans with the same letter offer the same benefits, but each insurance company may charge a different monthly premium. Meaning that you can get the same exact coverage even if you choose the exact same letter plan with a lower monthly premium from a different insurance company. So it is best to shop around to get the lowest premium with an insurance company that is reputable and pays their claims on time. Also it is important to review the history of the past years increases for any company you are considering enrolling with. Some Medicare Supplement insurance companies have had very minimal increases while others may have had large annual increases. So although the past doesn’t always predict the future, it is a good guide to help you decide.

Related Topics:

Click web links below to read:

Medicare - Medicare Advantage Plans Are Not The Same As Medicare Supplement Plans

Medicare - What Is The Difference Between Medicare Supplement And Medicare Advantage Plans

I am an independent insurance agent, certified to handle multiple Medicare insurance companies, allowing me to help you find the Medicare insurance you feel fits your needs. I pride myself in providing excellent customer service to my clients. I will be attentive to your needs and strive to meet or even exceed your expectations for your Medicare insurance needs.

So if you are confused and/or want more information about which Medicare insurance plan to enroll in, either as a new plan or even if you are just switching to a different Medicare Insurance plan, please call me at 941-404-5334 to set up an appointment to discuss further. If relatively local, I’ll come right at your home, office, or other location.

By the way, it doesn’t cost you any more if you enroll in a Medicare Insurance plan through me as an independent agent versus directly with an insurance company either over the phone or via the Internet, since I get paid by the insurance companies for your enrollment. Plus you will have personalized service by a local agent. If you would like my assistance, please call me at 941-404-5334.

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