Understanding Medicare Supplement Insurance (Medigap)

A Medicare Supplement Insurance (Medigap) policy is extra insurance you can buy from a private company that helps pay your share of costs in Original Medicare.

How Medigap Works

Medigap policies are designed to fill the "gaps" in Original Medicare (Part A and Part B) coverage. These gaps can include costs like:

• Copayments
• Coinsurance
• Deductibles

It's important to note that Medigap policies only work with Original Medicare. They cannot be used with a Medicare Advantage (Part C) plan.

Key Features of Medigap Plans

• Standardized Plans: Medigap plans are standardized and identified by letters (e.g., Plan G, Plan N). This means that a Plan G from one company has the exact same basic benefits as a Plan G from another company. The only difference is the price.
• Freedom of Choice: With a Medigap policy, you can see any doctor or specialist in the U.S. that accepts Medicare. You do not need referrals.
• Predictable Costs: By covering many of your out-of-pocket expenses, Medigap plans can make your healthcare costs more predictable.
• No Drug Coverage: Medigap policies sold after 2006 are not allowed to include prescription drug coverage. If you want drug coverage, you'll need to get a separate Medicare Part D plan.

When to Buy a Medigap Policy

The best time to buy a Medigap policy is during your 6-month Medigap Open Enrollment Period. This period automatically starts the first month you have Medicare Part B and you're 65 or older. During this time, you have a guaranteed right to buy any Medigap policy sold in your state, regardless of any health problems you may have. If you apply after this period, you may be subject to medical underwriting and could be denied coverage or charged a higher premium.