Medigap insurance works with Medicare by complimenting your Original medicare benefits. Medicare Parts A and B benefits don’t cover all your health care costs. Like many insurance policies, traditional Medicare has deductibles and co-pays. Even after your deductible is met, Medicare only pays 80% of your medical expenses. Leaving you responsible for the other 20%.
Medigap Insurance Works with Medicare
Medigap, or Medicare Supplement insurance, is private health insurance that covers medical costs not paid by traditional Medicare.
To enroll, you must also be enrolled in Medicare Parts A and B. Beneficiaries enrolled in Medicare Advantage (Medicare Part C) are not eligible for supplement insurance unless they switch back to Medicare Parts A and B.
About 77 percent of people who enroll in traditional Medicare also obtain supplemental insurance.[embedyt] http://www.youtube.com/watch?v=OhMB4povZDQ&width=650&height=365[/embedyt]
There are 10 medigap insurance plans, A through N, with each lettered plan offering a different level of coverage.
The most comprehensive (and popular) plan, Plan G, pays almost all of the co-pays, coinsurance and deductibles.
This plan doesn’t cover Medicare Part B deductible. However, most find it very affordable compared to the Part A deductible.
These policies have several advantages over ordinary private insurance coverage and Medicare Part C:
- You can go to any doctor, specialist or hospital that accepts Medicare – there are no provider networks
- Your coverage is good nationwide, offering peace of mind when you travel or spend time at a vacation home
- The insurance policy is guaranteed renewable. It can’t be canceled by your insurance company as long as you pay the premium
It’s important to note that supplement insurance covers only medical expenses.
For prescription drug coverage, you must purchase a standalone Medicare Part D plan. Dental and vision plans are also separately available through private insurers.
How Does Medicare Work with Other Insurance?
Medicare works with Medigap plans to supplement what Medicare doesn’t cover you for. There are numerous other policies that may look like Medigap plans, but are not.
- State-level aid
- Indian health service coverage
- Veterans benefits
Enrolling in Medigap
The best time to enroll in a policy is during your Open Enrollment Period. It begins the 1st day of the month your at least 65 years old AND enrolled in Medicare Part B of traditional Medicare.
If you enroll during this window, you are guaranteed coverage even if you have pre-existing conditions.
Enrollees cannot be charged a higher premium. You can still enroll in a policy (or switch your current Medigap policy) after the Open Enrollment Period.
However, insurers can deny your application or charge you a higher premium because of your age or health.
Many private insurance companies offer these plans. Plans are standardized, the benefits under each lettered plan are the same. No matter which insurance company you choose.
Monthly premiums, however, can vary from one insurer to another. For example, a Medigap Plan G policy might cost $155 a month at one insurance company, while another carrier might offer the exact same policy for $100 a month.
Where to Find Medigap Plans
There’s no point in paying more for the same coverage, but comparing policies can be confusing and time consuming.
At MedicareFAQ, our licensed agents explain your options and research policies from dozens of top rated insurance companies.
We don’t work for any one insurance company, we focus on finding you the most affordable rate for the coverage that best meets your needs. Getting started is simple. Call the number on our site or fill out this form on our website.