Medicare provides a great deal of coverage for seniors, but unfortunately, it doesn’t cover the costs of everything. To fill in the gaps, you can purchase supplemental insurance plans, such as a Medigap plan. Here is a little more information about what Medigap is, what it covers, and why you should consider investing in a policy of your own. 

A Guide to Understanding Medigap

What Is Medigap? 

Simply put, Medigap is a supplemental medical insurance plan that covers some of the expenses medicare doesn’t provide coverage for. For instance, Medigap plans may cover hospital deductibles, outpatient deductibles, skilled nursing services, and emergency care in foreign countries.

Like other medical insurance plans, Medigap policies have different co-pays and out-of-pocket maximums, so it’s important to think carefully about your personal healthcare risks and your financial situation before choosing a policy. 

There are ten distinct Medigap policies, including A, B, C, D, F, G, K, L, M, and N. Certain policies offer high-deductible plans and lower premiums in some states, and others have caps on yearly out-of-pocket maximums, which can save people money.

Some policies cover more or less of particular types of medical costs. For instance, both Plan A and Plan N cover 100% of Medicare Part A Co-insurance for hospital stays, Medicare Part B Co-insurance and Co-payments, and up to an additional 365 days in the hospital after Medicare benefits are used up. However, Plan N requires that patients pay a co-payment of up to $20 for some office visits and $50 in co-pay for emergency room visits, as long as they don’t result in an inpatient hospital admission. 

How does Medigap differ from other policies?  

Medigap is different from traditional medical insurance policies because it does not offer full coverage. Medigap is designed to work hand in hand with Part A and Part B Medicare plans, and cannot be purchased individually.

Like traditional insurance policies, Medigap monthly costs are based on geolocation and historical financial data for a set area, which means different insurance brokerages may charge different amounts for the exact same policy. 

While traditional medical insurance policies can be purchased yearly during open enrollment, Medigap open enrollment is based on your age, or when Medicare Part B kicks in, which is the first of the month when you turn 65. After this date, you have six months to enroll in a Medigap plan without being refused for a policy based on your personal health. 

Anytime you have questions or concerns about your medical coverage, turn to Lighthouse Agency Inc. in Fairfield, OH. With a commitment to offering personalized insurance services to their clients, this trusted team of professionals can help you to identify and resolve gaps in your insurance coverage to protect your financial future. Learn more about the policies they offer by checking out their website or by giving their office a call at (513) 860-9100.