What is Medigap Insurance?
Medigap insurance, also known as Medicare Supplement Insurance, is a private insurance policy designed to help cover some of the out-of-pocket costs associated with Medicare, which is a federal health insurance program primarily for individuals aged 65 and older. Medigap policies are specifically meant to fill the "gaps" in Original Medicare coverage.
These gaps may include expenses such as copayments, coinsurance, and deductibles that Original Medicare does not cover. Medigap policies are standardized and labeled with letters ranging from A to N, with each letter representing a different level of coverage and benefits. The coverage varies by plan type but generally allows policyholders to budget more effectively for their healthcare spending.
It is important to note that Medigap policies can only be purchased by individuals who are already enrolled in Medicare Part A and Part B. Additionally, Medigap insurance does not cover prescription drugs; for that, beneficiaries must enroll in a separate Medicare Part D plan.
When considering a Medigap policy, individuals should compare the available plans in their state, check the premiums associated with each plan, and evaluate the benefits they offer to find the most suitable option. It's advisable to apply during the open enrollment period to avoid potential pre-existing condition exclusions.