Thinking about signing up for Medigap? You’re in the right place.
Medigap, also called Medicare Supplement Insurance, helps cover costs that Original Medicare doesn’t. It’s a smart way to protect your wallet from unexpected medical bills.
You can buy a Medigap policy from any insurance company licensed in your state.
The key is picking the right plan for your needs.
There are different lettered plans, each offering unique benefits.
Compare the same lettered plan from different companies to find the best deal.
Remember, you need to have Original Medicare Parts A and B before getting Medigap.
This extra insurance works alongside your existing Medicare coverage, filling in those pesky gaps.
It’s like having a safety net for your health care costs.
Key Takeaways
- Medigap helps cover costs not paid by Original Medicare
- You must have Medicare Parts A and B to get Medigap
- Compare plans from different companies to find the best fit for you
Understanding Medigap and Its Place in Medicare
Medigap fills gaps in Original Medicare coverage.
You’ll learn about Medigap basics, how it differs from Medicare Advantage, and the types of plans available.
The Basics of Medigap
Medigap, also called Medicare Supplement Insurance, helps pay for costs not covered by Original Medicare.
These policies are sold by private companies and work alongside your Medicare Part A and Part B coverage.
When you have medical expenses, Medicare pays its share first.
Then, your Medigap policy kicks in to cover some or all of the remaining costs.
This can include copayments, coinsurance, and deductibles.
Medigap policies are standardized across most states.
This means a Plan G in Florida offers the same basic benefits as a Plan G in California.
The main difference is the price and the company selling it.
To get a Medigap policy, you must have Medicare Part A and Part B. It’s important to buy during your open enrollment period for the best rates and choices.
Medigap vs. Medicare Advantage
Medigap and Medicare Advantage are two different ways to get more coverage beyond Original Medicare.
You can’t have both at the same time.
Medigap works with Original Medicare, while Medicare Advantage replaces it.
With Medigap, you keep your Original Medicare and add extra coverage.
Medicare Advantage is a all-in-one alternative to Original Medicare.
Medigap usually has higher monthly premiums but lower out-of-pocket costs when you need care.
Medicare Advantage often has lower premiums but more costs when you use services.
Medigap lets you see any doctor who accepts Medicare.
Medicare Advantage usually has network restrictions.
Your choice depends on your health needs, budget, and preferred way of getting care.
Types of Medigap Plans
Medigap offers different types of plans, each labeled with a letter.
The most common are Plans A, B, C, D, F, G, K, L, M, and N. Each plan type provides a specific set of benefits.
Plan F and Plan G are popular choices.
Plan F offers the most comprehensive coverage but is only available if you were eligible for Medicare before 2020.
Plan G is similar but doesn’t cover the Part B deductible.
Plan N is a good middle ground.
It offers lower premiums in exchange for some cost-sharing.
You pay small copays for some office and emergency room visits.
The right plan for you depends on your health needs and budget.
Compare the benefits and costs of different plans to find the best fit.
Remember, prices can vary between insurance companies even for the same plan type.
The Enrollment Process and Choosing the Right Plan
Signing up for Medigap involves careful timing and decision-making.
You’ll need to understand when to enroll and how to pick the right policy for your needs.
When to Sign Up: Medigap Open Enrollment
Your Medigap open enrollment period is a crucial window of opportunity.
It starts the first month you’re 65 or older and have Medicare Part B. This period lasts for six months and it’s a one-time deal.
During this time, you can buy any Medigap policy sold in your state, even if you have health problems.
Insurance companies can’t turn you down or charge you more because of your health issues during this period.
If you miss this window, you might face medical underwriting later.
This means the insurer can look at your health history and might charge you more or deny coverage.
You can also sign up when you lose other coverage, like employer insurance.
In this case, you’ll have a special right to buy a Medigap policy.
Selecting the Right Medigap Policy
Choosing a Medigap policy can feel overwhelming, but you’ve got this.
Start by looking at the different Medigap plans available.
Each plan is labeled with a letter (A through N), and offers different levels of coverage.
Think about your health needs and budget.
Do you travel a lot? Plan C and F cover foreign travel emergencies.
Worried about out-of-pocket costs? Plan G offers comprehensive coverage.
Compare prices from different insurance companies.
The benefits for each letter plan are the same, but prices can vary.
Your state insurance department or State Health Insurance Assistance Program (SHIP) can help you understand your options.
Remember, you can only use Medigap with Original Medicare, not with Medicare Advantage plans.
Working with Insurance Companies
When you’re ready to buy a Medigap policy, you can work directly with insurance companies or use a licensed insurance agent.
Make sure any agent you work with is legit and licensed in your state.
Ask lots of questions.
How much is the premium? Will it go up as you age? What’s the company’s history of rate increases?
Get quotes from several companies.
Prices can vary a lot for the same coverage.
Some states have rules about how insurance companies can price Medigap policies, so check with your state insurance department.
If you’re switching plans, be careful.
You might have to go through medical underwriting unless you have a guaranteed issue right.
This could mean higher premiums or even being denied coverage.
Trust your gut.
If a deal seems too good to be true, it probably is.
Take your time and don’t let anyone pressure you into making a quick decision.
Frequently Asked Questions
Medigap plans have some tricky rules about when you can sign up and what they cost.
Let’s clear up some common questions about these Medicare supplement policies.
Can you sign up for a Medicare Supplement plan anytime you like?
You can’t always join a Medigap plan whenever you want.
The best time to sign up is during your Medigap open enrollment period.
This starts when you’re 65 and enrolled in Medicare Part B. During this time, you can get any Medigap policy sold in your state, even if you have health problems.
What’s the scoop on the six-month Medigap open enrollment period?
Your Medigap open enrollment lasts for six months.
It’s a special time when insurance companies can’t turn you down or charge you more because of your health.
After this period ends, it might be harder or more expensive to get a Medigap policy if you have health issues.
What triggers a guaranteed issue right for Medigap?
Guaranteed issue rights happen in specific situations.
For example, if you lose your Medicare Advantage plan coverage or move out of its service area.
When you have these rights, insurance companies must sell you a Medigap policy and can’t charge you extra for health problems.
What’s the lowdown on the costs of Medigap plans each month?
Medigap plan costs vary.
Your monthly premium depends on things like your age, where you live, and which plan you choose.
Some plans might cost around $50 a month, while others could be over $300.
How quick can you get approved for a Medigap plan?
Getting approved for a Medigap plan can be pretty fast.
If you’re in your open enrollment period or have guaranteed issue rights, you might get approved right away.
Outside of these times, the process could take a few weeks if the company needs to check your health history.
Are there any cons to joining a Medigap plan?
Medigap plans have some drawbacks.
They can be pricey, especially as you get older.
You also have to pay for them on top of your other Medicare costs.
Some people find it confusing to pick from all the different plans.
And remember, Medigap doesn’t cover everything – you’ll still need separate coverage for things like prescription drugs.