Medicare Parts A and B pay for a lot of medical supplies and healthcare services, however they don't pay for everything. Traditionally, the patient still needs to pay 20% of the costs for covered services. To this end, some people choose to purchase supplemental insurance to pay the cost share not covered by Parts A and B, such as copays, coinsurange and deductibles.
In order to get Medigap coverage, you need to be already enrolled in Medicare A and B. Medigap plans are standardized. The Government has established different types of plans, lettered A through J. Most States can sell any, all or none of these plans, so it is important to shop around for a Medigap policy, since the premiums will vary from Plan to Plan, and State to State.
It is illegal for a company to sell you a Medigap plan if:
* you are on Medicaid
* you are in a Medicare Advantage or
Medicare + Choice Plan
* you already have a Medigap plan
(unless you are cancelling your old
one)
On the plus side, all Medigap plans purchased after 1990 are guaranteed renewable, so as long as you keep paying the premium, you cannot be cancelled because your get sick and make alot of claims!
Medicare Part D does impact Medigap plans in that no insurance carrier may sell you a plan that includes prescription drug coverage, because of the coverage offered through the Medicare D Plans.
Remember, your Medigap carries needs to send you a letter stating whether or not its drug coverage is equal to or better than Medicare Part D. If you did not receive such a letter, contact your Medigap provider and request one.
