Medicare Supplement or Medigap Policies

The original Medicare Plan pays for many health care services and supplies, but it doesn’t pay all of your health care costs. There are costs you must pay, like coinsurance, copayments, and deductibles. These costs are called “gaps” in Medicare coverage.

There are twelve different Medicare Supplement benefit plans available ( Plans A through Plan L ) and they do not vary among insurance companies. These plans can help you pay for the extra costs like coinsurance, copayments and deductibles. None of these plans cover prescription drugs. If you want a Medicare supplement plan with prescription drug coverage you will also need to purchase a Medicare Rx Plan.

NOTE: If you live in Massachusetts, Minnesota or Wisconsin, you have different standard Medigap plans to buy. Check with your state insurance department for details.

Generally, when you buy a Medicare Supplement policy, you must have Medicare Part A and Part B.  You will have to pay the monthly Medicare Part B premium.  In addition, you will have to pay a premium to the Medigap insurance company.  In most cases, as long as you pay your premium, your Medigap policy is guaranteed renewable.

Plan F is historically the most popular plan chosen by seniors. This is the most comprehensive Medicare supplement plan and is usually the most expensive one.

There are many more coverage options today than just Medicare Supplement Plans. These include the Medicare Health Plans also called Medicare Advantage Plans.

It is important for seniors to understand all of the options available to them so an informed decision can be made on purchasing the right coverage.