Those who have Original Medicare know that it covers many of their healthcare costs. They also know Medicare doesn’t cover everything, and that they are responsible for what Medicare doesn’t pay.
What Is a Medicare Supplement Insurance Policy?
That’s where a Medicare Supplement (Medigap) insurance policy comes in. If you have Original Medicare, a Medicare Supplement insurance policy can help pay for some of the costs Original Medicare doesn’t cover. Those who have a Medicare Supplement insurance policy pay a monthly premium for this extra coverage.
In exchange for this premium, a Medicare Supplement insurance policy helps the insured pay for costs like copayments, coinsurance, and deductibles. You must have Medicare Part A and Part B to buy a Medicare Supplement insurance policy.
What Should I Know About Medicare Supplement Insurance Policies?
Medicare Supplement insurance policies have grown more popular over the years. According to the American Association for Medicare Supplement Insurance, there were 14.5 million individuals with a Medigap policy in 2020.1
Those who are interested in a Medicare Supplement insurance policy have many options available to them. They are sold by private insurers, and buyers have numerous insurance companies to choose from.
Those who are eligible for Medicare effective January 1, 2020 and after have a choice between ten different Medicare Supplement plans. These plans are standardized across companies, except in Massachusetts, Minnesota, and Wisconsin where Medicare Supplement insurance plans are standardized in a different way.2 With a variety of coverage and premium options available, an individual is likely to find a plan to fit their needs.
Do Your Homework
Since those who are interested in a Medicare Supplement insurance policy have so many options, it’s best to research plans and companies before you make a decision. If you have questions, contact an independent insurance broker, a licensed insurance agent, or visit medicare.gov to learn more.
- American Association for Medicare Supplement Insurance in partnership with CSG Actuarial, Medicare Insurance Data Statistics 2021, 2021
- Medicare.gov, How to Compare Medigap Policies, 2020
- Medicare.gov, What’s Medicare Supplement Insurance (Medigap)?, 2020
Categories: Medicare Supplement, Insurance