Medicare plans are all significantly different from one another, and not every plan covers the same things. Luckily, various options beyond traditional Medicare can extend your coverage in certain areas. One such option is Medigap insurance. These policies are designed to fill in the gaps left by traditional Medicare, and they come in a wide range of versions for different circumstances, age groups, and medical needs. Whether you’re single, married, retired, or still working, a Medigap plan can help you get the most out of your Medicare plan without paying an arm and a leg. If you have a few essential pieces of information, finding the right Medigap policy should be relatively simple and painless — even if you’ve never bought insurance.
What is Medigap?
Medigap policies are supplemental insurance plans that people over 65 can buy to extend the coverage of their Medicare insurance. There are currently ten plans that are recognized under Medicare. Each of these policies has a different letter designation and different rules and coverage options. The name “Medigap” comes from the fact that these policies “fill in the gaps” in the original types of Medicare. If you have traditional Medicare, you can buy a Medigap policy to get more coverage for copayments, coinsurance, and deductibles for things like hospital stays and doctor visits.
How Does Medigap Insurance Work?
Like traditional Medicare, Medigap plans pay for health care services when they’re medically necessary. Each plan varies and has its rules, but they all cover certain medical expenses that Medicare doesn’t, like copayments, coinsurance, and a portion of hospital costs. If you have a Medigap policy, you’re responsible for paying the first portion of your medical bills — the same as you would with traditional Medicare. Insurers with Medigap policies will also pick up the rest of the tab. If you have a Medigap plan, it is your responsibility to cover the difference between the amount the plan covers and the total cost of the services you receive.
When Can You Buy Medigap?
If you are on Medicare and have not yet purchased a supplemental insurance plan, you can buy one any time between the ages of 65 and 70. After you turn 70, your options for traditional Medicare will go from extremely limited to nonexistent, as you will no longer be eligible to sign up for the program. It’s important to note that Medigap policies can vary from state to state. Some states have laws governing Medigap coverage and how insurers can write and sell them. If you live in one of these states, there are different rules that you need to follow.
Who Can Buy Medigap?
Anyone on Medicare who hasn’t yet reached the end of their Initial Enrollment Period (IEP) or is still within the General Enrollment Period (GEP) can purchase a Medigap plan. The GEP lasts six months, and a person can re-enroll in Medicare at any time during those six months. If you’re within your IEP, you’ll need to wait until the end of the year to purchase a Medigap plan. That said, if you are over 65 and have an existing health condition that could make it difficult for you to find coverage, you can apply for a state-run High-Risk Health Insurance Program (HRIP) that offers a range for people with pre-existing conditions.
How to Know Which Medigap Plan is Right for You?
The first step in choosing the right Medigap plan is to figure out what parts of Medicare you need the most help with. Once you know that, you can pick the Medigap plan that covers those expenses. For example, if you have a chronic illness that’s expensive to treat, you’ll want to buy a Medigap plan that covers those costs. It’s also a good idea to check each plan’s rates to see which is right for you financially.
Where and How to Buy Medigap.
If you haven’t already, you should enroll in traditional Medicare first. You can do this by visiting the official Medicare website at http://www.medicare.gov. Once you’ve done that, you can then see the websites of significant health insurance companies to compare Medigap policies. After you’ve found a few policies you like, you’ll need to go to your state health insurance website and see the application page for each policy. You will typically have to pay a small amount of money upfront, but you can then use that as a deposit on your insurance once you’re accepted into the program. This will keep you from paying the policy’s total cost immediately and give you time to decide which one you want to keep.
Conclusion.
Buying Medigap insurance can be overwhelming for the uninitiated, but it is a necessary evil if you want to afford traditional Medicare coverage. If you are under 65, you must purchase a Medigap policy with your Medicare coverage. When you are ready to buy, do your homework to find the best policy for your situation. And don’t forget to shop around to get the best price.
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