For people who are not familiar with Medigap, this is a Medicare insurance application offered by private carriers. This insurance helps people cover some of the costs of health care that Medicare does not provide, such as co-insurance, co-payments, and deductibles. In an important note, and in order to avoid confusion, adding Medicare and Medigap is the same thing, so it’s important to understand this when you first begin to investigate the problem.
What you need to know:
There are a number of things you need to know about if you are already considering buying a Medigap insurance, including the following:
• Even if you have health problems, you can update your Medigap policy, as long as you pay your premiums on time, you cannot be canceled.
• Individuals may purchase insurance from any insurance agent in their state provided that the company is licensed by the relevant state.
• Individuals covered by the Medicare Advantage Plan must cancel their policy before Medigap enters into force. You can't have both.
• It does not cover such things as long-term care and dental insurance.
• Medigap policies that were acquired after January 1, 2006, do not apply to prescription drugs. If you need this coverage, sign up for Medicare Part D.
• Only one person can be covered by Medigap.
• Policy holders must have Medicare Part A and B coverage.
• You must pay a Medigap premium in addition to covering Part B.
Make sure you take this into account when you start shopping for your Medigap supplement.
Who uses Medigap?
The US government has worked with private insurance companies to develop Medigap insurance, especially for people with disabilities and the elderly, in order to provide them with comprehensive medical care that is administered by the government. The key advantage is that Medigap helps individuals pay those extra costs that Medicare does not cover, for example, co-insurance, deductibles, and bonuses.
Some services may also be covered depending on the needs of the policy holder. In addition to this, coverage is often provided (if applicable) during tax deduction periods. Most importantly, and depending on the Medigap insurance premium that the consumer chooses, there may be additional benefits that are not covered by traditional Medicare insurance, even if Medicare continues to pay for approved health care costs.
Consult with an independent insurance agent who specializes in Medigap insurance to help you with this.
