When you are looking for a viable Medicare supplement, an available option is to use Medigap. A Medigap policy is private health insurance coverage used to supplement your original Medicare coverage. Costs that Medicare does not cover will be paid by Medigap.
When you have both Medigap and original Medicare, payments for covered costs are paid by government coverage first. The Medigap plan will then make the remaining payments for covered costs. The Medigap plan is used to supplement coverage that is offered by government insurance.
Medigap policies that are sold by an insurance company need to follow laws that exist at both the state and Federal levels of government. Health insurance companies typically sell a standardized policy that will be identified by the letters A to N. All policies that are sold by insurers will provide the same benefits regardless of where they are purchased. The only difference between policy types is the price.
Available coverage for a specific Medigap policy will vary based on type. When government benefits have been depleted, all Medigap policies provide payments for coinsurance coverage and up to 365 additional days for hospital stays. In addition any co-payments and coinsurance for Part B are also covered. The first three pints of blood for a transfusion are also covered as are the co-payments and coinsurance for any hospice care.
Medigap policies also have exclusions for certain coverage. Nursing homes stays that are considered long term care are not covered, Also not covered in a policy are hearing aids, eyeglasses, vision, and dental care. These costs are paid by government coverage. Individuals who are currently enrolled in government-run Prescription Drug Plans, are on state Medicaid, or an Advantage Plan, do not have a Medigap policy.
Your health insurance company is not required to offer all types of Medigap policies. This means that health insurance companies can offer a different type of policy selection to their customers. However, a Plan A Medigap policy needs to be provided if any other type of policy is being offered. Health insurance companies must also provide customers access to Medigap Plans A, C, and F. States are free to determine which types of Medigap policies are available to customers.
Individuals must have Part A and Part B for their government insurance, to be eligible to purchase a Medigap policy. However, someone who currently has an Advantage Plan can return to government coverage if they apply for a policy before their current coverage ends. Insurance companies no longer offer plans E, H, I, and J for sale to customers. However, if individuals currently have a discontinued plan, then it can be kept as long as payments are maintained.
Payments for Medigap policies as a Medicare supplement are made to an individual’s insurance company. Your monthly premium payment for Part B also needs to be paid. Separate Medigap policies are needed if individuals in a household are married. To cancel a Medigap policy, you will need to write a letter to your insurance company. Cancelling a policy is not an option that you can do by placing a phone call.