Medicare Supplement insurance, sometimes called Medigap, is extra insurance you can buy from a private health insurance company to supplement the coverage not provided by Original Medicare.
Medigap helps pay your share of out-of-pocket costs that come with Original Medicare plans.
It does not offer many of the added benefits that usually come with most Medicare Advantage plans, like prescription drugs, dental, and vision.
Generally, you must have Original Medicare (Part A and Part B) to buy a Medicare Supplement plan.
You are not eligible to purchase a Medigap plan if you have Part C Medicare Advantage.
Download complete Medicare 101 e-book here
Some things to think about with Medicare Supplement
- You will pay a monthly premium for Medicare Supplement insurance. This is in addition to the premium you pay for Medicare Part B.
- Most plans help pay your share of costs (like deductibles, coinsurance, and copayments) without a yearly out-of-pocket maximum. This means your out-of-pocket costs are usually much lower and more predictable, but how much you pay in a year still depends on your medical needs and the Medigap plan you chose.
- Medigap plans generally don’t cover long-term care (like care in a nursing home), private nursing duty, vision, dental care, or hearing aids.
- You can see any provider who accepts Medicare, but most Medicare Supplement plans do not cover costs if the provider wants to charge more than what Medicare will reimburse. You will be responsible for paying 100% of these ‘excess charges’ out of your own pocket.
- Some plan premiums may increase as you age.
- Doctors are generally not paid to help keep you healthy by providing care based on proven national quality standards.
- Doctors generally do not work together to coordinate and discuss care plans.
Most Medigap plans don’t cover prescription drugs. To get medication coverage, you’ll usually need a separate Part D plan.
Click here to connect with a licensed, trusted Medicare Advantage broker