What Is Medicare Supplement And What You Should Know About It?
A Medicare supplement, also called as Medigap, is a type of insurance usually sold by private insurance companies. Such policies help paying for healthcare services like coinsurance, copayments and deductibles that are not covered by traditional Medicare. Some Medicare supplement plans provide coverage for medical care when the policyholder is traveling outside the United States.
Medigap is different from Medicare Advantage. While the latter provides Medicare benefits, the former supplements original Medicare benefits.
Medicare Supplements dont provide coverage for everything
Usually, such policies dont provide coverage for vision care, eyeglasses, dental care, long term care, hearing aids or private nurses.
Things you should know about Medicare Supplements
Here are some factors that you must know before you buy a Medigap plan.
1.You should have both Medicare Part A and Part B in order to get a Medicare Supplement policy.
2.Having Medicare Advantage policy wont restrict you to apply for a Medigap, but you must leave the Advantage plan before the Medigap plan begins.
3.You need to pay your insurer a monthly premium for continuing with the Supplement plan along with monthly Medicare Part B premium to Medicare.
4.Unlike other health policies, Medical Supplements cover only one person. Therefore, if you and your spouse want to be covered under the same Medigap plan, then you wont be allowed for. You need to purchase individual policies.
5.You can buy Medicare Supplement plan from any insurance provider registered in your state.
6.Even if you have health conditions, you can renew existing Medigap plan. Your insurer is not allowed to cancel your policy until you pay the premiums on a regular basis.
7.There were some Medigap policies that covered prescription medications. However, Medigap plans that sold after 1st January, 2006 are not permitted to provide coverage for prescription medications. If you want proper coverage for prescription drugs, you may join a Medicare Prescription Drug Plan, also known as Part D plan.
8.Selling a Medicare Supplement plan to a buyer is illegitimate if he/she already has joined a Medicare Medical Savings Account, commonly known as MSA Plan.
Health insurance plans which are not Medigap
Some kinds of insurance plans are not Medigap plans and those are,
Medicare Advantage plans such as PPO, HMO, and private Fee-for-Service plan
Medicaid
Medicare Prescription Drug plans or Part D plans
TRICARE
Employer or Union plans that may include Federal Employees Health Benefits Programs or FEHBP
Tribal and Urban Indian Health Plans, Indian Health Service
Veterans benefits
LTC plans
Dropping existing Medigap plan
If you want to drop your existing Medigap plan, you must be very careful about the timing. Just dumping the policy at any point in time can go against you and may also land you in deep trouble. Hence, you need to be extra cautious when it comes to dropping your existing Medigap plan. For instance, you may want a completely new policy, or change to a Medicare Advantage policy with prescription medication coverage.
If you drop the entire policy and drug coverage was not much creditable or if you go over 63 days before the new Medicare coverage initiates, you will need to pay a late enrollment fee for PART D plan, provided you want to switch to it.
Medicare Supplements are offered in almost every US state. However, Minnesota, Massachusetts and Wisconsin have their own Medigap plans that reflect original supplement plans in a number of ways. Your location plays an important role in deciding the premium cost.
Medigap is different from Medicare Advantage. While the latter provides Medicare benefits, the former supplements original Medicare benefits.
Medicare Supplements dont provide coverage for everything
Usually, such policies dont provide coverage for vision care, eyeglasses, dental care, long term care, hearing aids or private nurses.
Things you should know about Medicare Supplements
Here are some factors that you must know before you buy a Medigap plan.
1.You should have both Medicare Part A and Part B in order to get a Medicare Supplement policy.
2.Having Medicare Advantage policy wont restrict you to apply for a Medigap, but you must leave the Advantage plan before the Medigap plan begins.
3.You need to pay your insurer a monthly premium for continuing with the Supplement plan along with monthly Medicare Part B premium to Medicare.
4.Unlike other health policies, Medical Supplements cover only one person. Therefore, if you and your spouse want to be covered under the same Medigap plan, then you wont be allowed for. You need to purchase individual policies.
5.You can buy Medicare Supplement plan from any insurance provider registered in your state.
6.Even if you have health conditions, you can renew existing Medigap plan. Your insurer is not allowed to cancel your policy until you pay the premiums on a regular basis.
7.There were some Medigap policies that covered prescription medications. However, Medigap plans that sold after 1st January, 2006 are not permitted to provide coverage for prescription medications. If you want proper coverage for prescription drugs, you may join a Medicare Prescription Drug Plan, also known as Part D plan.
8.Selling a Medicare Supplement plan to a buyer is illegitimate if he/she already has joined a Medicare Medical Savings Account, commonly known as MSA Plan.
Health insurance plans which are not Medigap
Some kinds of insurance plans are not Medigap plans and those are,
Medicare Advantage plans such as PPO, HMO, and private Fee-for-Service plan
Medicaid
Medicare Prescription Drug plans or Part D plans
TRICARE
Employer or Union plans that may include Federal Employees Health Benefits Programs or FEHBP
Tribal and Urban Indian Health Plans, Indian Health Service
Veterans benefits
LTC plans
Dropping existing Medigap plan
If you want to drop your existing Medigap plan, you must be very careful about the timing. Just dumping the policy at any point in time can go against you and may also land you in deep trouble. Hence, you need to be extra cautious when it comes to dropping your existing Medigap plan. For instance, you may want a completely new policy, or change to a Medicare Advantage policy with prescription medication coverage.
If you drop the entire policy and drug coverage was not much creditable or if you go over 63 days before the new Medicare coverage initiates, you will need to pay a late enrollment fee for PART D plan, provided you want to switch to it.
Medicare Supplements are offered in almost every US state. However, Minnesota, Massachusetts and Wisconsin have their own Medigap plans that reflect original supplement plans in a number of ways. Your location plays an important role in deciding the premium cost.
