Is A Medigap Plan Right For Me?

Medicare covers many healthcare services, but it does not always cover them in full. This means that you may be left on the hook for certain costs and have to pay them out of pocket. This is where Medicare Supplement plans come in. Medicare Supplement plans, also called Medigap policies, are plans sold by private companies that cover those gaps. While they cost you more in the short-term, they can save you a lot of money in the long-term. Read on to learn more about how Medigap policies may be right for you. 

Medicare Supplement Plan Basics

As stated above, Medigap policies are sold by private insurance companies. These are meant to be added alongside your Medicare plan. That way, when your Medicare plan asks you to pay for your portion of the bill, your Medigap policy will step in and cover the rest. In order to use Medigap policies, you first have to enroll in Medicare Parts A and B. Then, you can find a Medigap policy and company. This is where a good agent can come in. A good agent knows the most reputable companies and plans in your area and can guide you to the right plan for you. You enroll in the Medigap policy and pay a monthly premium. After you enroll in the Medicare Supplement Plan, you use Medicare as you normally would.

Medicare Supplement Plan Structure

While Medicare Supplement Plans are private policies offered by many different insurance companies, they all have to abide by different templates set by the Centers for Medicare and Medicaid Services (CMS). There are ten different templates that all of the plans must adhere to. As a consumer, you have to be able to compare the templates, the plans, and the companies to each other. It can become very confusing very easily. We try to make it simple below, but an agent can also help walk you through the structure.

There are ten different Medigap plans with two additional special options. The plans are called:

  • Plan A
  • Plan B
  • Plan C
  • Plan D
  • Plan F
  • Plan F with High Deductible
  • Plan G
  • Plan G with High Deductible
  • Plan K
  • Plan L
  • Plan M
  • Plan N

Each plan emphasizes different coverage. For example, some plans only cover excess inpatient costs and save money on the monthly premium. Many other plans cover much more, but cost more monthly.

Medigap policies are a great way to make sure that you do not have to pay all of the out-of-pocket expenses that Medicare requires if you go over your coverage limits. Most people could benefit from a supplement plan because you never know when you will need it most. The real question is not whether Medicare Supplements are right for you, but which plan is right. To learn more about Medicare Supplement plans and to see which plan best suits your needs, contact us today!