Medicare supplements are also called Medigap plans. These plans were created to help cover the “gaps” in Original Medicare. Parts A and B only cover up to 80% of your expenses, so a Medigap plan is used to pick up the leftover 20%.
Medicare supplements also help pay for the deductibles, coinsurance, and copayments of Parts A and B. They also offer coverage for additional days in inpatient hospital care and skilled nursing facilities.
For those who travel out of the country, Medigap plans also offer coverage for emergency services outside of the U.S.
Why do I need Medicare Supplement Insurance?
Purchasing a Medicare supplement is completely up to you. The majority of Medicare beneficiaries do obtain coverage outside of Original Medicare. Extra policies greatly reduce the out-of-pocket costs for medical services. Even if you are currently healthy, enrolling in a Medigap plan can give you peace of mind for what the future may bring.
Medigap plans are popular because they fill in the “gaps” left by Original Medicare. They cover the 20% of leftover expenses from Original Medicare by paying for things like copayments, coinsurance, and deductibles.
They also offer emergency service coverage when traveling outside of the U.S.
Medigap plans give their members the ability to choose their providers and hospitals – they do not have to receive coverage from a specific network of doctors. There are no referrals necessary in Medigap plans. Some plans leave the member with zero out-of-pocket costs.
Once enrolled in a Medigap plan, you can never be terminated based on health conditions.
Are Medicare Supplement Plans guaranteed issue?
Sometimes. When you first enroll in Original Medicare – whether that is right when you turn 65 or later in life after your other creditable coverage ends – you have guaranteed rights to a Medigap plan. Guaranteed issue means that no insurance company can deny you coverage, no matter what health conditions you have. There is a short window of time for this.
There are other instances when you may qualify for guaranteed issues, but these vary by state. Tell Senior Benefit Solutions which state you reside in and we’ll be able to tell you what rights you have to a Medigap plan.
What happens if I miss Medigap Open Enrollment?
Those who miss their Medigap Open Enrollment Period may still apply for a Medigap plan. This can be done at any point throughout the year. However, if done outside of the open enrollment, the individual will have to go through medical underwriting (in most states).