The original Medicare health coverage is a great start to securing your health during retirement, but you might be in shock when your out-of-pocket costs start to accumulate if this is all the coverage you have.
Medicare Has Gaps
The gaps in original Medicare coverage can pose a significant financial burden on retirees, so it’s wise to consider additional insurance that covers a percentage of copay costs, deductibles, and the minimum insurance not covered by original Medicare. This coverage is known as Medicare Supplement Insurance and is often referred to as Medigap insurance.
What is Medigap Insurance?
The gaps in original Medicare coverage represent a substantial financial burden on retirees, so it’s beneficial to consider additional insurance that addresses these gaps. You have two options: the Medicare Advantage Plan, known as Part C, or Medigap insurance.
How to Get Medigap Insurance
The best time to obtain a Medigap policy is during the initial open enrollment period for Medigap. This period begins in the first month you are at least 65 years old and enrolled in Part B and lasts for six months. During this time, insurance companies cannot charge you extra for Medigap or deny you Medigap coverage based on your sex, age, health, or any pre-existing conditions. However, they can do so after this period ends.
Quick Facts About Medigap Insurance
Medigap insurance is not a replacement for original Medicare. You will pay a separate fee to a private insurance company for your Medigap insurance. There is no family plan. A Medigap policy covers only one person, so you will need a separate policy for your spouse. Medigap policies do not cover prescription drugs. You will need Part D of Medicare to help pay for prescription costs, which comes with a separate fee. You are likely to pay premiums for original Medicare, Medigap, and Part D, but it is essential to do so if you want to cover all aspects of your care and fill in the gaps.
Seek Help
Identifying the gaps in original Medicare health coverage and determining which plans offer the best value for your medical needs can become complicated. It can get very costly if you do not make the right choices, so it’s always a good idea to discuss your medical needs with a Medicare-specialized insurance agent.
Frequently Asked Questions
Can I lose my Medigap insurance if I become seriously ill?
Your policy guarantees that it will be renewable if you become ill while covered by Medigap insurance. You don’t have to worry about the insurance company canceling your policy because of your health issues or denying it if you have pre-existing conditions.
Can I get Medigap coverage to help with medical costs if I am not enrolled in original Medicare?
You will still need to have Parts A and B of Medicare, and you must continue to pay any monthly premiums that come with those plans.
Source: https://www.thebalancemoney.com/medigap-insurance-facts-4153841
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