MediGap Plans refers to Medicare Supplement insurance, which helps pay for medical costs not covered by original Medicare. There is a gap between what Medicare covers and what the beneficiary is responsible for when receiving medical services. While you might be currently healthy, there could come a day when you will need more medical care. You could end up with very high unexpected costs if you do not have supplemental insurance to cover your 20% percent portion of your Medicare bills. Supplement insurance policies generally help pay for the following health care costs:

  • Copayments
  • Coinsurance
  • Deductibles

After you sign up for original Medicare (Parts A & B) and then buy a Medicare Supplement plan, original Medicare will pay its share of the Medicare-Approved Amount for covered health care costs. Then, your Supplement insurance will pay its share.

8 Things To Know About Medicare Supplement

  1. Medicare Supplement plans are offered by private insurance companies.
  2. You must have Medicare Parts A & B to apply for a Medicare Supplement plan.
  3. Supplement plans do not replace original Medicare benefits.
  4. There is a monthly premium for Supplement plans.
  5. Each Supplement plan covers one person, no exceptions.
  6. Supplement plans are guaranteed renewable as long as you pay the premium.
  7. Supplement plans sold after January 1, 2006 are not allowed to cover medications.
  8. Supplement and Part D plans purchased from the same company usually require separate premium payments.

When Can I Get A Medicare Supplement Plan?

You can buy into any Medicare Supplement plan without medical underwriting during your 6-month open enrollment period, which starts on the first day of the month that you turn 65 and enroll in Medicare Part B, with some exceptions.

If you have End Stage Renal Disease (ESRD), you may not be able to buy a Medicare Supplement policy until you turn 65 years of age. Federal law does not require insurance companies to sell Supplement insurance policies to people under age 65.