What You Need To Know Before Purchasing Medigap Policies

Medigap policies, also known as supplemental Medicare plans or Medicare supplement insurance, are plans that supplement or fill the gaps of Medicare Part A or Medicare Part B plans. Medigap policies and Medicare Advantage plans are, however, not the same. Medicare Advantage plans get you Medicare benefits, while Medigap only supplements the benefits of your original Medicare Plan.

This only means that you must first have either a Part A or a Part B Medicare insurance plan before you can get a Medigap policy. Moreover, Medigap policies can be purchased from private insurance companies selling these standardized policies. These “standardized” polices or specific sets of benefits for every plan is the only thing Medigap insurance companies are allowed to sell. This allows you to easily compare coverage and costs among different companies.

Once you purchase a Medigap plan, you pay the private insurance company a monthly premium apart from the monthly payment for your Part A or Part B Medicare insurance. Plus, a Medigap policy covers only the supplemental needs of the policy holder, not including his or her spouse’s.

Moreover, when comparing one supplemental Medicare insurance quote to another, you must remember that plans E, H, I and J are no longer for sale. While this is true, existing plan holders do not need to panic because they are still valid. And to avoid frauds, make sure that you are purchasing your policy from a licensed private insurance company.

Since January 1, 2006, Medigap can no longer include drug prescription coverage. If you would like this kind of coverage, it’s recommended that you go for Part D Medicare insurance. This plan is offered by Medicare-approved private insurance companies, just like Medigap. A Part D Medicare insurance quote should be easily available from their websites, once you submit some information.

Lastly, a legitimate private insurance company does not have the right to cancel your Medigap policy even if you have health problems. Your policy should be renewable as long as you do not fail to pay the premium. This information should be found when asking for a Medicare insurance quote for any Medigap policy.