What is Medicare Supplement Insurance?
Medigap is Medicare Supplement Insurance that helps fill “gaps” in Original Medicare and is sold by private companies. Original Medicare pays for much, but not all, of the cost for covered health care services and supplies.
A Medicare Supplement Insurance (Medigap) policy can help pay some of the remaining health care costs such as copayments, coinsurance, and deductibles.
- Medicare Supplement Insurance plans are labeled as – A, B, C, D, F, G, K, L, M, and N.
- You must have Medicare Part A and Part B to purchase Medigap.
- A Medigap policy is different from a Medicare Advantage Plan. Those plans are ways to get Medicare benefits, while a Medigap policy only supplements your Original Medicare benefits.
- You pay the private insurance company a monthly premium for your Medigap policy. You pay this monthly premium in addition to the monthly Part B premium that you pay to Medicare.
- These plans do not cover prescription drugs, and you will need to sign up for a standalone prescription drug plan (Part D).
- Any standardized Medigap policy is guaranteed renewable even if you have health problems. This means the insurance company cannot cancel your Medigap policy if you pay the premium.
When Can You Get Medicare Supplement Insurance?
- Buy a policy when you are first eligible
The best time to buy a Medigap policy is during your 6-month Medigap Open Enrollment Period. This period automatically starts the month you are turning 65 and enrolled in Medicare Part B. During that time, you can buy any Medigap policy sold in your state, even if you have health problems. You will generally get better prices and more choices.
- Outside open enrollment
If you apply for Medigap coverage after your open enrollment period, you will not have guaranteed issue rights, which means your insurance company can deny or raise your premium if you do not meet the medical underwriting requirements.
How much does Medicare Supplement Insurance Cost?
Although Medicare Supplement plans are all standardized the same way in nearly every state. In other words, the benefits they provide are the same, regardless of which insurance company offers the plan. Because of this, the prices also vary from one plan level to another, as each plan level provides different benefits.
For example, Plan G, which is the most comprehensive Medigap policy available to newly-eligible Medicare beneficiaries, tends to have monthly premiums (for a 65-year-old) between $130 and $300, depending on the insurance company.
Shop smart with a Medicare Insurance Broker
Working with a health insurance broker can save you a lot of headache throughout your shopping process. That is why it is important to take your time finding your ideal health insurance broker. When you invest that time, you will find someone that you like and trust. Skyline Benefit is an independent Medicare insurance broker in Orange County with a variety of Medicare Supplement insurance options and price points. You can click here to get an instant quote today or make a virtual appointment with Skyline Benefit’s Medicare team today. You can also call us at (714) 888-5116.