What does Medigap cover?

What is Medicare Supplement Insurance?

Medicare Part A and Part B (Original Medicare) has certain limitations. Medicare Part A covers hospital-related costs, such as inpatient hospital care or nursing facility care. It also covers home health care and hospice services expenses. Medicare Part B provides coverage for preventative care and services that are considered medically necessary. Combined, the two cover about 80% of your health care costs.

Medicare Supplement Insurance, or Medigap, is designed to fill the 20% gap that Original Medicare doesn’t cover. These policies partially or fully cover copays, coinsurance, deductibles, and other expenses.

What do Medicare Supplement plans cover?

Medigap offers 10 plan types: A, B, C, D, F, G, K, L, M, and N. All Medigap plan types offer the same basic benefits, but some offer additional coverage at a higher premium.

Compare the differences between each of these plans side-by-side with our Comparison Chart here.

How much do Medicare Supplement plans cost?

With a Medigap policy, you have a monthly premium to pay, which varies from one location to another (similar to regular health insurance). When insurers determine policy costs, they may use one of these methods:

  • Attained age-rated premiums: These are based on your current age and may increase in the future.
  • Issue age-rated premiums: These are assigned based on your current age and do not increase in the future.
  • Community-rated premiums: These are the same for all people of all ages in an area.

What you pay may be higher or lower depending on where you live, the type of policy you choose, and several other factors.

Do I qualify for Medicare Supplement Insurance?

In order to qualify for Medicare Supplement Insurance, you must already have Original Medicare (Part A and Part B). If you have an active Medicare Advantage plan, you are not eligible to enroll in Medigap.

Is a Medicare Supplement plan worth it?

It’s important to compare the cost of a supplemental plan to your predicted out-of-pocket costs in order to decide if a Medicare Supplement Insurance plan is right for you. Medicare Supplement plans can offer financial stability and security because they decrease your unexpected out-of-pocket costs.

Here are the main points to focus on as you consider Medigap coverage:

  • The cost of lab tests and imaging (you’re responsible for 20%)
  • Expected costs for a nursing home stay through coinsurance
  • Deductible costs associated with a hospital stay
  • 20% of your physician visits

By understanding what these plans cover and what they cost, you can determine if the investment in supplementary coverage is worth it. As health care costs are quickly rising, Medicare Supplement Insurance can make your health care more affordable and protect you from large, unexpected out-of-pocket costs.
Our Licensed Insurance Agents take the time to learn about your unique health needs and compare premiums from multiple insurance carriers so you can find the best deal on the right coverage for you. Give us a call today at 1-855-665-9200 or visit our Plan Comparison tool to start shopping for this integral piece of health care coverage.

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