Medigap serves as a Medicare supplemental insurance that covers gaps in your standard Medicare and is provided by private agencies. Standard Medicare covers a lot, however, not all of the fees for covered healthcare supplies and services. The Medigap policy can assist you with paying some of the remaining healthcare expenses, that include, deductibles, coinsurance & co-payments. Certain Medigap policies also offer coverage for service that the traditional Medicare does not cover, for instance, medical care for traveling outside of the US. If you have an original Medicare policy, and you add the Medigap policy, this is what happens:

  • Medicare pays the portion covered under the approved amount for covered healthcare bills, after which the Medigap plan covers its share.

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Eight Things You Should Know About Medigap Insurance

  • You should have the Medicare Section A and Section B.
  • The Medigap policy is not the same as a Medicare Advantage Plan. Such plans are methods of getting Medicare benefits, however a Medigap policy supplements only the original Medicare benefits.
  • A private insurance agency is paid a monthly premium for the Medigap policy. This monthly premium is paid on top of the monthly Part B premium which is paid for Medicare.
  • The Medigap policy only provide coverage for a single person. If you require coverage for you spouse too, then a separate policy must be taken out for him.
  • A Medigap policy can only be bought from an insurance company which is licensed in your state for selling it.
  • A standardized Medigap plan is guaranteed renewable despite you having medical issues. This means your insurer can not cancel the Medigap policy if the premium is paid for. Also have a look at the benefits of a Medigap plan N.
  • Certain Medigap policies that were sold in the past also covered for prescription drugs. However, Medigap policies that is sold after January the first, 2006 don’t offer prescription drug coverage. If you require prescription drug coverage, you have an option to obtain a Medicare Prescription Drug Plan, Part D.
  • It’s illegal for a company to sell a Medigap policy to you if you possess a Medicare Advantage Plan, unless you opt for switching to the original Medicare.

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Not Everything Is Covered Under Medigap Policies

Things such as dental care, long-term care, hearing aids, vision care, eyeglass or private-duty nursing is typically not covered under Medigap policies.

Cancelling Your Entire Medigap Policy And Not Only The Drug Coverage

You may require an entirely diverse Medigap policy (not just the older Medigap policy short of prescription drug coverage). Or, you may decide you want to decide you want to switch to the Medicare Advantage Plan that provides prescription drug coverage. If you choose to cancel your entire Medigap policy, you must carefully think about the timing. If joining a new Medicare drug plan, a late enrolment penalty might be payable during any of these scenarios:

  • You’re dropping the entire Medigap policy, but the drug coverage was not creditable prescription drug coverage.
  • You’re going sixty-three days or more in succession before the new Medicare drug coverage commences.