Medigap policies, also known as Medicare supplement plans, are health insurance policies that are sold by private insurance companies. It works with Original Medicare by paying all or part of the remaining costs that it did not cover. Deductibles, coinsurance, and copayments are included in Medigap coverage. In addition, Medigap may also cover health care costs that Medicare does not cover such as coverage outside the country.
Typically, Medigap have ten standardized plans to choose from. Except for the states of Wisconsin, Massachusetts, and Minnesota where it has different names, the types of Medigap plans have letter names: A, B, C, D, F, G, K, L, M, N respectively. Each plan provides standardized benefit and varies only in prices depending on the insurance company provider.
Related post: Just Enrolled in Medicare: Do I Need a Medigap Policy?
Before you head on to shop a Medigap policy, make sure that you did your part in doing some research. Having a good understanding of the different types and other parts of Medigap policies will help you find the best type of Medigap plan. Here’s a guide to help you get to know Medigap.
1. Make sure you are eligible to get a Medigap plan. Just make sure you are already enrolled in Original Medicare. Depending on the state, there may be additional requirements needed. If you are still enrolled in Medicare Advantage, Medigap will not be sold to you.
2. Be conscious of open enrollment period because, during this time, insurers can’t decline your application due to guaranteed issue rights.
More at: Medicare Supplement Open Enrollment
3. Get to know the ten standardized plans of Medigap. Prices may vary depending on the insurance company, but the benefits are still the same. Find out how the Medigap premium that you have chosen is priced. It is important to understand clearly how they set their prices because your future premium will depend on what you will choose today. What is cheap now might be the most expensive in the future. Select the best one for you.
4. If you have pre-existing conditions, inquire if the Medigap will cover the medical costs or are excluded for what amount of time.
5. Don’t be afraid to ask! The problem that other people have is that they hesitate to ask their agents or insurance provider questions. It is i9mportant that everything is clear with you when you purchase a Medigap plan to avoid misconceptions of benefits and frustrations later on.
Just like Medicare and Medicare advantage, there’s a lot of things that you need to know and understand before purchasing a Medigap plan. That is why it is very important to take time to know each of these healthcare options so that you can maximize your benefits and get the best coverage for your needs. With that in mind, we at FreeMedSuppQuotes has created a new e-book that aims to help Medicare and Medigap enrollees have a handy yet complete reference of everything they need to know about Medicare supplement plans.