What Is Medigap?
Private insurance companies complement our existing Medicare policies with a supplementary plan. This health insurance policy, also referred to as Medigap, covers healthcare service costs not included in our standard Medicare coverage. Thus, extending to co-pays, deductibles, and coinsurance out-of-pocket expenses, we otherwise incur.
Medicare Supplement is designed to add value to our primary Medicare coverage, not replace it. These standard Medigap plans are labeled A to N and offer varying health coverage levels streamlined across states. The cost we incur on application depends on our location, age, the plan we buy, and the insurance company we approach.
Important considerations
We are eligible provided we already have Medicare Part A and Part B Medicare Advantage card that cover hospital and doctor services.
The monthly premium we pay to the private insurance provider is in addition to our Medicare premium
Medigap policies cannot be held jointly; one plan extends to only a single individual
As long as we pay a premium, our policy is valid even if we are detected with health problems
It cannot be combined with a Medicare Advantage Plan
The initial enrolment period when we can apply for Medigap opens three months before we turn 65, and lasts for another three months after our birthday.
If we miss the above slot, there is an open enrolment period at our disposal. It lasts for six months once we enroll in Medicare Part B after completing 65 years of age.
Advantages of opting for a supplementary plan
Original Medicare only covers around 80% of our Medicare Part B healthcare expenses. That leaves us responsible for paying the additional 20%, which can be costly, especially when diagnosed with a severe illness. By purchasing a Medicare Supplement plan, we minimize our financial risk significantly.
Comprehensive plans
Those of us eligible for Medicare prior to 2020 can opt for Medicare Supplement Plan F. It reduces our out-of-pocket expenses as it covers the remaining doctor and hospital costs not included in our original Medicare plan.
Considering Plan F is not available to us who are newly eligible for Medicare, Medicare Supplement Plan G is our next best option. It includes almost the same coverage as Plan F barring the Part B deductible reimbursement.
When we are seeking broad coverage, Medicare Supplement Plan N is an attractive choice. Though its benefits remain constant, the costs associated with this plan vary across insurance carriers.
Shop around
Private insurance service providers have unique price slabs for the different Medigap plans on offer, so it pays to compare our benefits versus our expenses. Worthwhile gains come at an extra cost; hence, we must select a policy that strikes the right balance between these two vital components.
Partner with a reputed independent insurance agent who can customize a supplemental plan to fit your specifications.
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