What is Medicare Supplement (Medigap) Insurance?

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A Medicare Supplement (Medigap) Insurance, sold by private companies, can help pay

some of the health care costs that Original Medicare doesn't cover, like co-payments,

coinsurance, and deductibles.

If you have Original Medicare (Parts A & B) you can purchase a Medigap policy,

Medicare will pay its share of the Medicare-approved amount (80%) for medically

necessary covered health care costs. Your Medigap policy pays its share based upon

the plan you decide to enroll in.

A Medigap policy is different from a Medicare Advantage Plan. Those plans are ways to

get Medicare benefits, while a Medigap policy only supplements your Original Medicare

benefits.

What you need to know about Medicare Supplement policies:

1. You must have Medicare Part A and Part B.
2. If you have a Medicare Advantage Plan, you can switch to a Medicare Supplement insurance policy during certain enrollment periods or if you meet certain criteria (in some states underwriting may apply), but make sure you can leave the Medicare Advantage Plan before your Medicare Supplement insurance policy begins.
3. You pay the private insurance company a monthly premium for your Medicare Supplement insurance policy in addition to the monthly Part B premium that you pay to Medicare.
4. A Medigap policy only covers one person. If you and your spouse both want Medigap coverage, you'll each have to buy separate policies.
5. You can buy a Medicare Supplement insurance policy from any insurance company that's licensed in your state to sell one.
6. Any standardized Medicare Supplement insurance policy is guaranteed renewable even if you have health problems. This means the insurance company can't cancel your Medicare Supplement insurance policy as long as you pay the premium.
7. Medicare Supplement insurance policies sold after January 1, 2006 aren't allowed to include prescription drug coverage. If you want prescription drug coverage, you can join Medicare Prescription Drug Plan (Part D).
8. Itss illegal for anyone to sell you a Medigap policy if you have a Medicare Advantage Plan, unless you're switching back to Original Medicare.