Original Medicare covers many medical needs that you might have, but it doesn’t cover everything. You might find that the copayment, coinsurance, and deductible costs take too much out of your pocket. So, if you don’t have a Medicare Advantage plan, you may benefit from a Medicare Supplement plan, also known as Medigap.
What is Medigap?
A Medigap plan is essentially a little extra cushion for your medical budgeting. It’s sold by a licensed private company and provides financial assistance to those enrolled in Original Medicare. You pay a premium to the company each month, which provides additional coverage for the enrolled individual.
How does Medigap help?
Original Medicare only pays the Medicare-approved amount to your providers. In other words, medical providers only accept up to a certain amount to be covered by your plan. Unfortunately, in many cases, this does not cover the total cost of services. That’s where Medigap comes in.
It helps to supplement healthcare costs that linger after Original Medicare has done its part. Medicare pays its share, then Medigap pays its share. And in some cases, you’ll find that Medigap plans add benefits, such as out-of-country medical care that Original Medicare does not cover.
Who qualifies for Medicare Supplement?
If you have Original Medicare, you qualify for Medicare Supplement insurance. However, you must have both Part A and Part B to purchase Medicare Supplement benefits.
How does Medigap differ from Medicare Advantage?
Medigap isn’t the only option for someone looking for more comprehensive healthcare insurance coverage – it’s just one of the many. Medicare Advantage plans are one of the most common alternatives to Medigap. It bundles Original Medicare (Part A and Part B) with prescription (Part D) and other healthcare benefits in a completely separate plan provided by a private insurance company. With Medicare Advantage, however, you are often bound to the networks and stipulations set forth by the private entity.
On the other hand, Medigap works with your Original Medicare – so you’ll pay your monthly premium in tandem with the Part B premium that you pay to Medicare. You have the option to visit any doctor throughout the United States that accepts Medicare – without worrying about networks or referrals. When you add supplement insurance, be sure to note that it does not cover Part D (prescription drugs). So, you’ll want to also enroll in a Part D plan.
How will a Medicare Supplement plan benefit me?
Your Medigap plan covers you for the rest of your life. As you age, your medical needs might change, and you want to be prepared to cover any need that goes above the coverages Original Medicare offers. The supplement insurance can help you do just that. Your Medicare Supplement plan serves as a protector for your limited income.
Get help determining if Medicare Supplement is right for you.
Not sure if Medicare Supplement insurance is right for you? Our advisors can help you determine which Medicare coverage is right for your needs. Schedule an appointment with one of our advisors today.