WHAT IS A MEDICARE SUPPLEMENT PLAN?

A Medicare Supplement plan, also known as Medigap, is a type of private health insurance designed to help pay some of the out-of-pocket costs not covered by Original Medicare (Part A and Part B). These costs can include deductibles, copayments, and coinsurance. Here are the key features of a Medicare Supplement plan:

1. Coverage Gaps:  Medigap policies help fill the "gaps" in coverage left by Original Medicare. For example, if Original Medicare covers 80% of a service, your Medigap plan might cover the remaining 20%.
 

2. Standardized Plans:  Medigap plans are standardized by the federal government, meaning that each plan type (e.g., Plan A, Plan B, Plan G) offers the same basic benefits, regardless of the insurance company selling it. However, premiums may vary between companies and locations.
 

3. Eligibility:  To be eligible for a Medigap plan, you must be enrolled in both Medicare Part A and Part B. Medigap policies are sold by private insurance companies, and you typically pay a monthly premium for the Medigap plan in addition to your Part B premium.
 

4. No Networks:  Unlike Medicare Advantage plans, Medigap policies do not have networks. You can see any doctor or visit any hospital that accepts Medicare.
 

5. No Prescription Drug Coverage:  Medigap plans sold after 2006 do not include prescription drug coverage. If you need this, you would need to enroll in a separate Medicare Part D plan.
 

6. Renewable Policies:  Medigap policies are guaranteed renewable as long as you pay your premiums, meaning the insurance company cannot cancel your policy even if your health condition changes.
 

7. Not Compatible with Medicare Advantage:  If you have a Medicare Advantage Plan (Part C), you cannot be sold a Medigap policy. Medigap is only compatible with Original Medicare.
 

Overall, a Medicare Supplement plan is designed to provide financial peace of mind by reducing the out-of-pocket costs associated with Original Medicare