Medicare Supplement Insurance sometimes called Med Supp or Medigap are sold by private insurance companies. Original Medicare covers about 80% of medical costs. Med Supp can help cover remaining out-of-pocket expenses like deductibles, coinsurance and co-pays. They do not include Part D drug coverage - you buy that separately. They do cover visits to any doctor who accepts Medicare patients. You must have Part B and keep paying your Part B premium to keep your Medigap policy.
If you travel extensively, opting for original Medicare plus Medigap may be a good option. Many Medigap plans pay for a large portion of emergency medical services you may need when traveling outside the United States.
- Prescription drug coverage
- Routine vision and dental services
- Eyeglasses
- Hearing aids
- Private-duty nursing services
- Long-term care
Medicare Supplement insurance companies can use one of three ways to rate, or price, their policies:
- Community-rated, which means everyone pays the same premium regardless of age. The premium for a community-rated plan may be higher at first but it may be least expensive over time.
- Issue-age rated, which means your premium is based on your age at the time you buy the policy
- Attained-age rated, which means your premiums go up as you get older and hit certain preset milestones. This plan usually start with a low premium, but the increases at different age milestones can be steep.
Be sure to compare premiums from several insurers before you buy, since the benefits will be essentially the same.
Medigap has a six-month Open Enrollment Period. It automatically starts the first full month you are 65 and enrolled in Medicare Part B. For example: If you turn 65 on April 3 but did not join Medicare Part B until May 25, your Medigap Open Enrollment Period will start on June 1. This is the first day of the month in which you are both 65 and enrolled in Part B.
If you wait to buy until after your OEP, you may have to pay more if you have a health condition, and you could be turned down for the coverage you want.
You can apply for a Medigap policy after your Open Enrollment Period ends. However, there is no guarantee your application will be accepted if you do not meet medical underwriting requirements, except in certain limited situations.
Even if you have a disability or have health problems, an insurance company cannot do any of the following: Refuse to sell you any Medigap policy it offers, charge you a higher premium than they charge others who are 65 and older or delay the start of your coverage.
During the six-month Open Enrollment Period, you can purchase a Medigap policy even if you have pre-existing health conditions.
Even if you have a disability or have health problems, an insurance company cannot do any of the following: Refuse to sell you any Medigap policy it offers, charge you a higher premium than they charge others who are 65 and older or delay the start of your coverage.
Each plan has different out-of-pocket maximums, different access to doctors, and other varying features which may change annually. Many Part C plans have a $0 premium. Others can go as high as $200 a month, or more, which is in addition to your monthly Part B premium. In 2023, the standard Part B premium amount is $164.90 (or higher depending on your income). Some people with Social Security benefits pay less.
