Medicare Supplement plans, also known as Medigap plans, are insurance policies sold by private companies to help cover costs not fully covered by Original Medicare (Parts A and B). While Original Medicare covers a broad range of health services, it doesn't pay for everything, and there are often out-of-pocket costs like deductibles, copayments, and coinsurance.
Here’s a brief overview:
1. **Coverage**: Medigap plans help cover some of these gaps by providing additional benefits. They can help pay for costs such as deductibles, coinsurance, and copayments that Original Medicare does not fully cover. Some plans also offer coverage for services like foreign travel emergency care.
2. **Standardization**: Medigap plans are standardized, which means that each plan of the same letter offers the same basic benefits, regardless of which insurance company sells it. For example, a Plan G from one company will have the same coverage as a Plan G from another company.
3. **Types of Plans**: There are different types of Medigap plans, labeled A through N, each offering a different level of coverage. Plan A is typically the most basic, while Plan F and Plan G often provide more comprehensive coverage.
4. **Enrollment**: You can purchase a Medigap policy during your Medigap Open Enrollment Period, which starts the month you’re 65 or older and enrolled in Part B. During this period, you have a guaranteed right to buy any Medigap plan available in your area, regardless of your health status.
5. **Cost**: The cost of Medigap plans can vary based on factors like the insurance company, the plan type, and your location. Since these plans are offered by private companies, premiums can differ even for the same plan.
6. **No Drug Coverage**: Medigap plans do not include prescription drug coverage. For that, you would need to enroll in a standalone Medicare Part D plan.
If you’re considering a Medigap plan, it’s a good idea to compare options and consider your health care needs and budget.
