What Is Medicare Supplement Insurance and What Does Medigap Cover?

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Do you have Medicare? Have you wondered if you need any supplemental insurance?

According to the State of Medigap 2019 report, 13.5 million Americans were enrolled in Medigap in 2017.

Are you unclear about what supplemental insurance coverage provides? Is your question, “what does Medigap cover?” Continue reading this article to find answers to your questions.

Medicare Overview

The federal health insurance program, known as Medicare, started in 1965. This program provided health and financial coverage for people age 65 and older. In 1972, the program expanded to include people under age 65 with long-term disability.

Medicare pays for medical care such as hospitalizations, doctor’s visits, and prescriptions. It also covers preventative, skilled nursing facility, home health, and hospice care.

Most people over age 64 can get Medicare Part A if they or their spouse receive Social Security benefits.

What Is Medicare Supplement Insurance?

The purpose of Medicare supplemental insurance is to reimburse you for qualifying events.

These events may include injuries, illness, or hospitalization. This policy provides payment regardless of whether your health insurance plan pays.

Having supplement plans helps fill in the gaps and decrease your out-of-pocket expenses.

What Does Medigap Cover?

One type of Medicare supplemental insurance is Medigap. Private companies sell this type of insurance.

The policies pay for healthcare costs not covered by Medicare. This can include copayments, coinsurance, and deductibles.

Beginning January 1, 2020, new Medicare recipients won’t get Part B deductible coverage from Medigap plans. Due to this change, Plans C and F aren’t an option for new Medicare recipients.

You can keep your current plans if you enrolled before January 1, 2020. If you became eligible for Medicare before this date but didn’t enroll, you may be able to buy one of these plans.

If you have Original Medicare and choose to buy Medigap, it will cover services not paid for by Medicare. Thus, Medicare pays its share of the approved amount of your healthcare bill. Then the Medigap policy pays its part.

Points to Understand about Medigap Policies

There are several rules regarding Medigap policies. These include the following.

  • You must be enrolled in Medicare Part A and Part B
  • Medigap only supplements Original Medicare, it doesn’t provide a way to get Medicare
  • You will pay both a Medigap and a Medicare Part B premium each month
  • Medigap only covers one person, not couples
  • All standardized Medigap policies include guaranteed renewal regardless of health problems
  • Medigap policies sold after January 1, 2006, don’t cover prescription drugs
  • If you have a Medicare Advantage Plan it’s illegal to buy Medigap unless you return to Original Medicare

Medigap policies have several restrictions. They don’t cover long-term care, vision, dental, hearing aids, glasses, or private-duty nursing.

Do You Need Insurance?

At Futurewise we work to protect you when the unexpected happens. We believe it’s important to use effective fact-finding when choosing lasting solutions. Thus, it’s important for you to learn information such as, what does Medigap cover?

Your future is in good hands with us.

Contact Futurewise today to learn more about your insurance options.