Medicare Supplemental Insurance (Medigap)

This type of policy helps to pay some of the health care costs that Original Medicare doesn't cover, like:

  • Co-payments
  • Coinsurance
  • Deductibles

Medigap policies are sold by private companies. 

Some Medigap policies also cover services that Original Medicare doesn't cover, like medical care when you travel outside of the U.S. If you have Original Medicare and you buy a Medigap policy, here's what happens:

  • Medicare will pay it's share of the Medicare-approved amount for covered healthcare costs. Then, the Medigap policy pays it's share.

 

8 Things to know about Medigap Policies

  1. You must have Medicare Part A and Part B
  2. If you have a Medicare Advantage plan, you can apply for a Medigap policy. But, make sure you can leave the Medicare Advantage plan before your Medigap policy begins
  3. You pay the private insurance company a monthly premium for your Medigap policy. You pay this monthly premium in addition to the monthly Part A and Part B premiums
  4. A Medigap policy only covers one person. If you and your spouse both want Medigap coverage, you will each have to buy a separate policy
  5. You can buy a medigap policy from any insurance company that is licensed in your state to sell one
  6. Any standardized Medigap policy is guaranteed renewable even if you have health problems. This means the insurance company cannot cancel your Medigap policy as long as you pay the premium
  7. Medigap policies sold after January 1, 2006 are not allowed to include prescription drug coverage. If you want prescription drug coverage, you can buy a Medicare Prescriptions Drug Plan (Part D plan)
  8. It is illegal for anyone to sell you a Medigap policy if you have a Medicare Medical Savings Account (MSA) plan