Medicare Supplements
Medicare Supplements, also known as Medigap, are insurance plans sold by private insurance companies to fill the gaps in Original Medicare coverage. Medicare supplements are designed to help with the payment of some healthcare costs not covered by Original Medicare. Those with Original Medicare and Medicare Supplements will have both plans pay their share of the covered healthcare costs.
Generally, before anyone can buy a Medicare Supplement, they must have Original Medicare. They will have to pay the monthly Medicare Part B premium and the Medicare Supplement premium.
Medicare Supplement Coverage
Medigap plans help cover the gaps in Medicare that the beneficiary would normally have to pay for, including copays, coinsurance, and deductibles. Beneficiaries can use their Medicare Supplement plan at any provider that accepts Medicare.
Medicare Supplement is more suitable for those who live in more than one state or travels a lot. However, Medicare Supplement plans do not include drug coverage, so Medicare beneficiaries will need to buy a standalone Medicare Part D for their medications. Moreover, Medicare Supplement does not cover dental, hearing, or vision.
Medicare Supplement Insurance Plan Costs
Even though private insurance companies are required to provide the same basic Medicare benefits for each letter plan, they can charge different premiums. We advise you to shop around to find a plan that fits your financial and medical needs. Some of the ways insurance companies may price their Medicare Supplement plan include:
- Issue-age-rated: These Medicare Supplement Insurance plans base their premiums on the beneficiary’s age when they enroll in the Medicare policy. The younger the beneficiary was when he or she enrolled, the lower their premiums will be.
- Attained-age-rated: This is also a plan that bases its premiums on when the beneficiary first bought their policy, but premiums increase as they get older.
- Community no-age-rated: These plans charge the same premiums for everyone, no matter the age.
Medicare Supplement Insurance Plan Eligibility and Enrollment
Before a Medicare beneficiary is eligible to enroll in a Medicare Supplement plan, they must be enrolled in Original Medicare. The right time for a Medicare beneficiary to enroll in a Medicare Supplement plan is usually during the Open Enrollment Period (OEP). OEP starts on the first day of the month that the Medicare beneficiary reaches 65 and is enrolled in Medicare Part B. This period lasts for six months.
During the OEP, beneficiaries have the right to join any Medicare Supplement plan available where they live. Those that miss this enrollment period and decide to enroll later may be charged a higher premium or denied basic benefits based on their medical history.
Want more info about Medicare Supplements? Don’t hesitate to contact us for more information.