Medicare Supplement (Medigap)
What is a Medigap Plan?
Similar to traditional health insurance policies, Original Medicare requires payment of deductibles and coinsurance for most covered services. In addition, there is no annual cap for out-of-pocket costs in these areas.
Medicare Supplement plans, also known as Medigap, are issued by private insurance carriers. They are designed to cover unpredictable deductibles and coinsurance in exchange for a fixed monthly premium. Medicare Supplement plan policies are standardized by letter name (such as Plan F, Plan G, and Plan N) and they may require underwriting if you don’t qualify for Guaranteed Acceptance. It is important to remember that Medicare Supplement plans always pay secondary to Original Medicare, so you must be enrolled in both Medicare Parts A and B, and continue paying any applicable premiums to qualify.
Medicare Supplement plans must cover all Medicare covered services, so there will never be a denial of their secondary coverage for a Medicare approved benefit. Due to this plan design, they are a good fit for beneficiaries who desire the flexibility to see any Medicare accepting provider in the U.S.
Your Medicare Supplement premium will be paid separately to your chosen insurance carrier. The monthly plan premium may be based on several factors such as residence zip code, age, when you apply, and sometimes even health status. This is why it is key to work with an experienced health insurance agent that specializes in Medicare. Due to the unique nature of Medicare Supplements, there may be specific discounts and deadlines that will save you money in the long-term.