What is Medigap Insurance (Medicare Supplement)
Medicare supplement also called Medigap policy is a type of insurance sold by private companies. Some would also call it secondary insurance to Medicare as it picks up whatever Medicare doesn’t pay. It pays the 20% that Medicare doesn’t cover which includes co-pays, deductibles and etc. Some Medigap policies cover healthcare when you travel outside the country but it doesn’t cover dental, vision, hearing plans and a very few cover prescription drugs. That is why most of the seniors have a separate coverage of these long term care.
One should have enrolled to Medicare part A and B in order to avail a Medigap policy. With Medigap you pay a separate monthly premium, in addition to Medicare part B, which varies among insurance companies and on the type of plan you get. Once you get a Medicare Supplement plan, there’s always a possibility of rate increase on a yearly basis. This is why most people shop around for better plans every year especially during open enrollment period.
Almost all of the people are unaware that if you have a Medicare Supplement plan you can change anytime as long as you’re health qualifies you to do so. Unlike Medicare Advantage, you can only make changes during open enrollment period which happens in the fall.
For more information about these Medigap policies, don’t hesitate to contact us!