Medicare Secondary insurance is the term used to describe Medigap policies. These policies are considered secondary to Medicare because Medicare pays its portion of the bill and then the plan pays the remainder.
You see, the Medigap policy is designed to complement Medicare. It’s NOT a substitute for Original Medicare and you need Medicare Part A as well as Part B to qualify for supplemental enrollment.
Medicare Secondary Insurance
It doesn’t matter what you call it, either way, it’s some of the best coverage available to Medicare beneficiaries. Supplemental insurance will assist you by closing the gap between what Original Medicare will pay and what you must pay out of pocket.
These plans are standardized, meaning they’re regulated by the state as well as federal laws. The benefits you receive will be the same no matter which insurance company you choose. The big difference will be price and choosing a plan with good ratings.
There are different pricing methods to Medigap policies and not all carriers will offer all 10 plans, some will only offer a few of them.
Secondary Insurance to Original Medicare
Most of the time Medicare is the primary insurance provider to Medicare Beneficiaries. This means that Medicare pays the claims first and then the supplement company will pay the remainder.
Medicare supplement makes ideal secondary coverage plans for Medicare beneficiaries. Medigap plans were designed to complement the expenses Medicare leaves beneficiaries responsible for paying. In other words, Medigap fills the gaps left by Traditional Medicare.
The amount of coverage you receive depends on the plan you select. Some policies, like Medicare Supplement Plan F, offer full coverage. This means you cover the premium and the policy covers the rest. Now that’s serious secondary coverage to medicare!
Not all secondary plans cover beneficiaries 100%, that is first dollar coverage and comes at a price. There are lower premium options available for those who can’t afford Medigap Plan F.
Now Medicare isn’t always primary, sometimes Medicare is secondary. This is usually when you have employer group coverage from a large employer, with more than 20 employees.
Secondary Insurance to Employer Coverage
If you receive coverage from a large employer group health plan, then Medicare is likely secondary to your employer plan. However, just because your employer group plan is primary doesn’t mean that it’s the best option.
Many seniors find that Medicare becoming primary will save them more money than staying on their employer group coverage.
If the group insurance is affordable, you may choose to delay your enrollment in Part B. If you’re 65 and still working you may not need to enroll in Part B.
It’s important that you speak with a licensed insurance agent who specializes in Medicare before you decide to delay enrollment.
When you delay enrollment into Medicare Part B you could receive the Part B Late Enrollment Penalty if certain conditions aren’t met.
When Is Medicare Primary?
First off, what is primary insurance? Primary insurance is the insurance that pays first. Medicare is primary to small employer coverage, and Medicare can’t pay as your primary insurance if you never enrolled in it.
Talking to an insurance agent is always a good idea, they are experts that can help make sure you don’t end up in a situation without coverage.
In many cases, secondary insurance won’t pay unless the primary insurance first paid its share. So, if you never enrolled in Medicare, you might not have coverage.
When is Medicare Insurance Secondary?
Medicare is secondary health insurance to your group health insurance if the company has 20 or more employees. However, talking with a licensed insurance agent will give you the confidence you want in your insurance.
How Do I Apply for Medicare Supplemental Secondary Insurance?
If you need help paying Medicare costs and are looking to apply for Secondary Insurance to Medicare, call the number above, or fill out the compare rates form we offer to get started.
If you have any questions or concerns, contact us immediately, and we’ll provide you with the information you need to make decisions about Medicare Supplements.