What is Medicare Supplement Insurance?
Medicare Supplement Insurance, commonly known as Medigap, is a type of health insurance policy designed to fill the “gaps” in Original Medicare coverage. Original Medicare, which includes Part A (hospital insurance) and Part B (medical insurance), covers a significant portion of healthcare costs for seniors and certain disabled individuals, but it does not cover everything. ISU – Bright Agency provides medicare supplement plans in Columbus, IN, Madison, IN, North Vernon, Seymour, IN, Greensburg, IN and surrounding regions.
This is where Medigap comes into play.
What Medigap Covers
Medigap policies help pay for out-of-pocket costs that Original Medicare does not cover. These costs can include:
- Copayments: Payments are required for each medical service, such as a doctor’s visit or a hospital stay.
- Coinsurance: The percentage of costs you pay for a medical service after you’ve paid your deductible.
- Deductibles: The amount you must pay out-of-pocket for healthcare services before your insurance begins to pay.
- Some Medigap plans also cover services that Original Medicare doesn’t, like medical care when you travel outside the U.S.
Standardization and Plans
Medigap policies are standardized in most states. This means that all plans must offer the same basic benefits, regardless of which insurance company sells them. These plans are labeled A through N, each providing a different level of coverage. For instance, Plan F (available to those who were eligible for Medicare before January 1, 2020) offers the most comprehensive coverage, including all copayments, coinsurance, and deductibles. Other plans, like Plan G and Plan N, offer robust coverage but with some cost-sharing elements.
Eligibility and Enrollment
To buy a Medigap policy, you must be enrolled in Medicare Part A and Part B. The best time to buy a Medigap policy is during the Medigap Open Enrollment Period, which lasts for six months and begins on the first day of the month in which you are 65 or older and enrolled in Part B. During this period, you have a guaranteed issue right to buy any Medigap policy sold in your state, regardless of health status.
Key Points
Private Insurance: Medigap policies are sold by private insurance companies.
Individual Policies: Medigap policies cover only one person. If you and your spouse both want Medigap coverage, each of you will need to buy separate policies.
Premiums: You pay a monthly premium for your Medigap policy in addition to the Part B premium you pay to Medicare.
In summary, Medicare Supplement Insurance is an important option for those seeking to reduce their out-of-pocket healthcare costs not covered by Original Medicare. Let’s have a conversation! Feel free to call or email us.