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What Is A Medigap Plan

What Is A Medigap Plan


10 Things Every Medicare Beneficiary Should Know About Medigap Plans

Before enrolling in a Medigap or Medicare Supplement policy, it helps to do your research to find a plan that will give you the most bang for your buck. Below, we list the top 10 things you should know abou what is At Medigap plan before you enroll.

1. Medigap does not replace Original Medicare.

Rather than replace Original Medicare health insurance benefits, Medigap helps cover the gaps that it leaves. If you are enrolled in Original Medicare, you likely pay a monthly premium for Medicare Part B (medical insurance). In some cases, you may have to pay a Part A premium, too. With a Medigap plan, you still receive your Medicare Part A and Medicare Part B benefits and are still responsible for paying your Medicare Part B premium each month– and a Part A premium, if applicable.

2. You must be enrolled in Medicare Part B to be eligible for a Medigap plan.

Similarly, you can not enroll in a Medigap plan if you are already enrolled in a Medicare Advantage plan (Medicare Part C). If you have Medicare Advantage and wish to enroll in Medicare Supplement Insurance, you must leave your Medicare Advantage plan before your Medigap policy takes effect.

Contact your Medicare Advantage plan provider for more information on disenrolling in your plan.

3. Medigap premiums vary widely, even for plans with the same benefits.

There are 10 standardized Medigap plans to choose from in most states, labeled Plan A, B, C, D, F, G, K, L, M and N. Each of these plans provide a different combination of benefits that cover a wide range of expenses– from deductibles to copayments and coinsurance.
Because Medicare Supplement Insurance plans are sold through private insurance companies that determine how each of their Medigap plans are priced, a person enrolled in Medigap Plan N from one insurance company could pay more than a person enrolled in the same plan from a different insurer. To get an affordable rate, it is recommended that you compare Medigap plans to find the plan you want at a price you can afford.

4. Insurance companies don’t have to offer Medigap plans.

It is up to an insurance company whether or not they sell Medigap plans. If they do sell Medigap plans, however, they must at least offer Medigap plan A and either Medigap plan C or Plan F.

5. Different Medigap plans are available in different states.

Every Medigap plan may not be available where you live. In fact, in Massachusetts, Minnesota and Wisconsin, Medigap policies are standardized in a different way altogether. To find out which Medigap plans are available in your state, speak with a licensed insurance agent.

6. You must be enrolled in Medicare Part B to be eligible for a Medigap plan.

Similarly, you can not enroll in a Medigap plan if you are already enrolled in a Medicare Advantage plan (Medicare Part C). If you have Medicare Advantage and wish to enroll in Medicare Supplement Insurance, you must leave your Medicare Advantage plan before your Medigap policy takes effect.

Contact your Medicare Advantage plan provider for more information on disenrolling in your plan.

7. If you have a Medicare Medical Savings Account plan, it is illegal for an insurance company to sell you a Medigap policy.

According to CMS.gov, a Medical Savings Account (MSA) plan is a type of Medicare Advantage plan that combines a high-deductible health plan with a medical savings account. Read the full article for more information about MSA plans and eligibility requirements.

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8. Medicare Supplement Insurance plan is guaranteed renewable.

This means that as long as you are paying your Medigap monthly premium, an insurance company cannot cancel your Medigap policy– even if you have medical problems.

9. Medigap policies do not cover prescription medication.

Medicare Supplement Insurance policies sold after January 1, 2006, are not allowed to cover prescription drug benefits. If you are enrolled in Original Medicare and a Medigap plan and would like prescription drug coverage, you must join a Medicare Prescription Drug Plan (Medicare Part D) separately.

10. Medigap Plan F offers the most comprehensive coverage.

Medigap Plan F is the only Medigap policy that covers all nine standardized Medigap benefits.

Because of its robust coverage, however, Medigap Plan F may cost more than other plans. Medigap plans that offer similar coverage include Plans C, D and G.

Now that you have a better understanding of what Medigap plans are and the types of benefits they provide, you can make an informed decision regarding your services and coverage.

Now that you have a better understanding of what Medigap plans are and the types of benefits they provide, you can make an informed decision regarding your services and coverage.

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