Medigap, also known as Medicare supplement insurance, are insurance plans sold by private insurance providers in the US. Medigap basically offers cover for copayments and deductibles that are not included in original Medicare. Here are some of the crucial things that you should know before enrollment.
You cannot enroll for Medigap, unless you are a part of Medicare Part A and Part B. A beneficiary, who is over the age of 65 and new to Part B, is eligible to get a Medigap plan although it is not compulsory. The period starts from the first day after turning 65 and lasts for about 6 months. During this period, you can choose to go for any kind of supplement plan under Medigap as required, regardless of your existing health condition. These policies are sold by insurance providers, who are approved and licensed by the state. All your pre-existing health issues will be covered under Medigap. Beyond the period of enrollment, a person can change their plan, but might need to consider other terms and conditions of the insurance company, which often involves a health underwriting.
Other things to know
- First things first, you cannot opt for Medigap, unless you have original Medicare, which is part A and part B.
- If you already have a Medicare Advantage Plan, you cannot go for Medigap, unless you leave the Advantage plan.
- Even with Medigap, you will have to pay for the Part B premium. In short, you have to pay the monthly premiums for both Medigap and Medicare.
- Every person needs an individual Medigap policy. If you and your spouse need the benefits, you will have to take different AARP Medicare supplement insurance plans.
- The insurance company cannot cancel your Medigap policy for any reason. The provider will offer the renewal option, even if you have new health issues. However, make sure that you pay your premiums on time.
- Medigap policies don’t cover prescription drugs. If you are looking for coverage for prescription drugs, you will have to take the Part D of Medicare, also known as Medicare Prescription Drug Plan.
- Finally, for those who have a ‘Medicare Medical Savings Account (MSA)’, it’s illegal for anyone to sell Medigap policy to such people.
Please note that Medigap is different from Medicare Advantage Plans. There’s a lot of other information online, which you might want to check before enrolling or dropping the Medigap plan.