What is Medicare Supplement Insurance?

Purchasing Medicare Supplement (or Medigap) insurance can help you pay for some of the costs Medicare alone cannot cover, including copays, coinsurance, and deductibles. If you have Medicare and you choose to purchase a Medigap policy, Medicare will still cover your pre-approved amount for relevant care costs.

Keep in mind that a Medigap policy is a bit different from a Medicare Advantage Plan. Those plans were designed to help people receive Medicare benefits, while a Medigap policy can only be used to supplement Medicare benefits you are already receiving.

What you need to know:

  • Medigap purchasers need to have Medicare Part A and Part B.
  • If you already have an Advantage Plan, you are free to switch to a Medicare Supplement policy. However, make sure you are allowed to leave the Advantage Plan before the supplemental policy starts.
  • The Medicare Supplement Insurance policy will need to be paid for monthly in addition to your monthly Medicare Part B premium.
  • Medigap policies cover only one person. If your spouse wishes to have a policy as well, you’ll need to purchase an additional one.
  • Medicare Supplement insurance policies can be purchased from any licensed insurance company in your state.
  • All standardized Medicare Supplement policies are guaranteed to be renewable, even for those with health problems. As long as you pay your premium, the insurance company cannot cancel your supplemental policy.
  • Any Medicare Supplement insurance sold after January 1, 2006 cannot include prescription drug coverage.
  • It is illegal for anyone to sell you a Medigap policy if you are already have a Medicare Advantage plan, unless you are reverting to traditional Medicare.

Get in touch with our team at Agency for Retired, Elderly & Disabled today to learn how we can help set you up for Medigap insurance.