What is Medicare Supplemental Insurance?
Medicare Supplemental Insurance, commonly known as Medigap, is a type of insurance sold by private companies that helps cover some of the health care costs not paid by Original Medicare, such as copayments, coinsurance, and deductibles.
If you have Original Medicare and purchase a Medigap policy, Medicare will cover its share of the approved healthcare costs, and your Medigap policy will pay its portion. This can help reduce your out-of-pocket expenses.
Key Information About Medigap Policies
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You must have Medicare Part A and Part B to qualify for a Medigap policy.
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If you’re enrolled in a Medicare Advantage Plan, you can apply for a Medigap policy but be sure to confirm that you can leave the Medicare Advantage Plan before your Medigap coverage starts.
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You’ll need to pay a monthly premium to the private insurance company for your Medigap policy, in addition to the monthly Part B premium paid to Medicare.
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You can purchase a Medigap policy from any insurance company licensed in your state to sell one.
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All standardized Medigap policies are guaranteed renewable, meaning the insurance company cannot cancel your policy as long as you continue to pay your premiums, even if you develop health issues.
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Medigap policies sold after January 1, 2006, are not allowed to include prescription drug coverage. If you need prescription drug coverage, you’ll need to enroll in a Medicare Prescription Drug Plan (Part D).
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It’s illegal to sell you a Medigap policy if you have a Medicare Medical Savings Account (MSA) Plan.