Top 7 Facts You Need To Know About Medigap Policies

If you have enrolled for Medicare, you need to consider the need for additional coverage. There are two other parts of Medicare – Part C (Medicare Advantage) and Part D, which are offered by private insurance providers that have been approved by the state. Medicare supplement plans, also known as Medigap, works like a supplemental policy to original Medicare. Here are the top 7 facts you need to know.

  • First things first, Medicare Advantage and Medigap are different plans. You cannot opt for Medicare, if you are still enrolled for Medicare Advantage. While Medigap is meant for additional coverage beyond Medicare, Medicare Advantage includes everything in Part A and Part B.

  • For those who have Medicare Medical Savings Account (MSA) Plan, it’s illegal for them to have a Medicare supplement policy.
  • Medigap will pay for the copayments and deductibles that are not included in original Medicare. However, you will still need to pay for Part B premium, besides paying for the cost of Medigap insurance policy.
  • If you have original Medicare and Medigap at the same time, both will pay their share of the medical costs and healthcare expenses. Medigap may pay for additional expenses that are not included in Medicare. For example, the cost of healthcare outside the US may be covered by the supplement policy.

  • The Medicare supplement plans are named by after letters from A to N. The inclusions and benefits can be the same, especially in the 47 states (barring Wisconsin, Massachusetts, and Minnesota). However, the cost can depend on the insurance provider. For example, two people can pay for different prices for AARP Medicare supplement plan F in different states.
  • Medigap will only cover one person in one policy. If you and your spouse are looking for Medigap, you will have to get separate policies. Most of the standardized Medigap policies are renewable. This means that the insurance provider cannot deny renewal owing to a new health problem, as long as you pay the premium.

  • Medigap doesn’t cover prescription drug coverage. Beneficiaries looking for the same must buy a Medicare Prescription Drug Plan, which is Part D of the Medicare plan. Medigap will not cover the long term expenses, especially for dental and vision care. In most cases, it doesn’t pay for private-duty nursing either.

Check online to know the plans, and make sure to check the list of inclusions before taking the final call.