Medicare supplement plans, also known as Medigap, are insurance policies sold by private companies to help cover the costs that Original Medicare doesn't cover. If you're considering enrolling in a Medicare supplement plan, here are 10 things you need to know:
- Medicare supplement plans are standardized: There are 10 different types of Medigap plans, each labeled with a letter (A, B, C, D, F, G, K, L, M, N). Regardless of which insurance company you purchase your plan from, the benefits will be the same for each plan type.
- You must have Original Medicare to enroll in a Medicare supplement plan: You cannot have a Medicare Advantage plan and a Medicare supplement plan at the same time. You must be enrolled in Original Medicare (Part A and Part B) to be eligible for a Medigap plan.
- Medicare supplement plans do not cover prescription drugs: If you want prescription drug coverage, you will need to enroll in a Medicare Part D plan. Some Medigap plans offer limited drug coverage for certain medications, but most do not include prescription drug benefits.
- Medicare supplement plans do not cover long-term care: Medigap plans do not cover services like nursing home care, assisted living, or in-home care. If you need long-term care services, you will need to look into other options like long-term care insurance.
- Medicare supplement plans are guaranteed renewable: As long as you pay your premiums on time, your insurance company cannot cancel your Medigap plan. This means you can keep your coverage for as long as you need it.
- Medigap plans have a 6-month open enrollment period: The best time to enroll in a Medicare supplement plan is during your six-month open enrollment period, which starts the month you turn 65 and are enrolled in Part B. During this time, you have guaranteed issue rights, meaning you cannot be denied coverage or charged higher premiums due to pre-existing conditions.
- Medigap plans help cover out-of-pocket costs: Medicare supplement plans can help cover expenses like copayments, coinsurance, and deductibles that you would otherwise have to pay out of pocket with Original Medicare.
- Medigap plans offer coverage for foreign travel: Some Medicare supplement plans provide coverage for emergency medical care when traveling outside the United States. If you frequently travel internationally, this can be a valuable benefit to have.
- Medicare supplement plans may have different pricing structures: Insurance companies can set their own premiums for Medigap plans, so it's important to shop around and compare prices before enrolling in a plan. Premiums can be based on factors like your age, location, and tobacco use.
- Medicare supplement plans do not cover dental, vision, or hearing services: If you need coverage for dental, vision, or hearing care, you will need to look into separate insurance options or pay for these services out of pocket.
Before enrolling in a Medicare supplement plan, it's important to carefully review your options and consider your healthcare needs. Medigap plans can provide valuable coverage and peace of mind, but it's essential to understand how they work and what they do and do not cover.