Medicare Supplemental Health Insurance, also known as a Medicare Supplement, Med Supp, or Medigap Plan, is a federally standardized health insurance plan that fills in the “gaps” of what Original Medicare Part A and B don’t cover.
One of the most confusing things about Medicare Supplements is that the plans are named after the letters of the alphabet (A, B, C, D, F, G, K, L, M, N) – similar to the different parts of Medicare, which are also named after letters of the alphabet (A, B, C, D). Remember: Medigap Plan A is not the same as Medicare Part A (hospitalization) just as Medicare Supplement Plan D is not the same Medicare Part D (prescription drugs).
Who is eligible for a Medigap plan?
If you’re enrolled in both Medicare Part A and Medicare Part B, can pay the monthly Medigap premium, and can answer the health questions on the application (if you’re not in a special enrollment period), then you can enroll in a Medicare Supplement or Medigap Plan. You cannot enroll in both a Medicare Supplement Plan and a Medicare Advantage (Part C) Plan at the same time.
What is covered under a Medigap plan?
Original Medicare doesn’t cover all your Part A and Part B expenses, leaving an uncapped gap in coverage that you’ll be responsible to pay. This is where a Medicare Supplement or “Medigap Plan” can help by covering that gap to a certain degree, depending which plan you choose.
Seniors wondering which Medigap plan to choose often end up comparing plans F, G and N. Plan F covers all Part B and Part A expenses in exchange for a larger monthly premium. Plan G is identical to Plan F, but it requires the senior to pay the annual Part B deductible of $185 (in 2019). Plan N is similar to Plan G, but it makes the senior responsible for doctor and ER copays in addition to possible “excess charges” which is outlawed in Ohio.
How much does a Medigap plan cost?
For a 65-year-old, the monthly premium for a Medigap plan will cost anywhere from $50 a month for a High-Deductible Plan F, all the way up to $130 a month or more for a Plan F. For a 70-year-old, costs increase to $170 or more per month for a Plan F, and for an 80-year-old, $250 a month or more. Some companies rate different genders, smokers or chronic conditions higher. If you pay annually or quarterly instead of monthly, you can usually get a small discount, and some companies even offer “Household Discounts” if both partners or spouses apply at the same time. Of course, not all companies have the same rules, so please consult your insurance broker.
When can I enroll in a Medigap plan?
When you turn 65 years old, you get a 7-month enrollment period called the Initial Enrollment Period (IEP), when you can select any Medicare Supplement or Medicare Advantage plan (as long as you’re enrolled in both Medicare Part A and Part B). Your IEP starts 3 months before your 65th birthday. There are also Special Enrollment Periods when seniors can enroll in a Medigap Plan: When you’re coming off of group health insurance or Medicaid and enrolled in Parts A and B, you can choose Medigap plans A, B, C, D, F, K, or L without having to answer the health questions to qualify. If you want a Medicare Supplement Plan G or N, you will have to qualify by answering the health questions.
How do I enroll in a Medigap plan?
To enroll in a Medigap plan, it’s helpful to find a competent insurance agent or broker who can compare plans and companies for you to determine which option offers both a competitive rate and a stable long-term rate outlook. After comparing your options, the application process takes approximately 20 minutes. You can either complete it online with the help of your agent, or your agent may take your info over the telephone and enter it electronically for you.
After you submit your application, the company will do a health-history background check to make sure you’re “telling the truth, the whole truth and nothing but the truth.” If you’re in an enrollment period that allows you to choose a supplement without going through the health questions, your application will be processed much more quickly, if not instantly. Once it’s processed, the insurance company will notify your broker and send your policy and ID cards to you in the mail within 7-10 business days.
