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.
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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.