Supplemental insurance, also called Medigap or Medicare Supplement plan is a type of insurance cover that the policyholders add to the Original Medicare to cover the out-of-pocket costs that Part A and Part B doesn’t cover. The payments that the plan covers include copayments, coinsurances, deductibles, and the medical care provided while out of the country. The original Medicare plan pays up to 80% of the treatment costs leaving you with 20% to cover. Medigap then covers the remaining 20%.
Requirements of Enrolling to Medigap
The law restricts one from holding Medigap and Medicare Advantage Plan (Part D) at the same time. Therefore, anyone planning to hold a Medicare Supplemental insurance should consider dropping the Part D coverage. Additionally, it is mandatory for one to hold Medicare Part A and Part B before enrollment for the Medigap policy. The Medigap policy only covers one person, meaning that your spouse should get a separate insurance coverage. The plan also includes any other additional costs in the Original Medicare with the exceptions of conditions such as dental and vision care, hearing aids, eyeglasses, long-term care, and the private nursing.
Plans Available in Medigap Insurance
The federal government standardizes the ten plans that run from A through to N, but private insurance companies are in charge of selling the plans. The current Medigap policy does not have the Part D coverage, which consists of the prescription drug coverage, except for the plan sold before January 1, 2006. Therefore, one will have to purchase a separate plan if they want to get the insurance cover. The policyholders have a guaranteed renewal of their insurance cover every month regardless of their status.
Getting a supplemental coverage will save you some money spent on covering the out of pocket expenses. Individuals applying during the open enrollment period have the assurance of getting coverage without receiving an increment of premiums due to underlying health problems.