Medicare Supplement Insurance Plans
Medicare Supplemental Insurance plans are insurance policies you may obtain from a private insurance company to cover the out of pocket costs that Original Medicare does not cover.
What you need to know about Medicare Supplement
To purchase a Medicare Supplement or Medigap policy, it must be made clear the plan is “Medicare Supplement Insurance”. There are approximately ten medigap plans available to choose from. Plan availability may vary depending on where you live. The Medigap plans are A, B, C, D, F, G, K, L, M and N. All private insurance companies selling these plans must offer the same basic benefits within that specific plan. The plans may vary in price from company to company so it is highly important to shop around and find the best price.
Medicare Supplement plans help pay for out of pocket costs not covered under Original Medicare. It does not include benefits for Medicare Part D, Medicare Advantage Plans or any other third party insurance such as TRICARE, Medicaid or Veterans’ Administration benefits. You may obtain a Medigap plan only if you already have Medicare Part A and B.
Open Enrollment Period for Medigap insurance plans
On the month you turn 65, your Medicare Supplement Open Enrollment period begins on the first day of that month and Medicare Part B covered. Your time frame to purchase a Medicare Supplement plan is size months. You can check with your state’s Social Security Administration if you are under the age of 65 and see if your state offers additional open enrollment periods.
Remember, a Medicare Supplement Insurance plan supplements Medicare Part A and B to cover the cost gaps. You may not use a Medicare Part C plan in conjunction with a Medicare Supplement plan if you are considering a Medicare Part C plan.
During the six months of your Open Enrollment Period, any insurance company that sells Medicare Supplement Insurance plans is not allowed to refuse to sell you a Medicare Supplement Insurance policy, force you to wait for basic benefits to begin or charge you more if you have health issues.
If you apply for a Medigap plan outside of your Open Enrollment Period window, a private insurance company may “underwrite” a Medicare Supplement plan for you. The private insurance company may require you to take a physical exam, refuse to sell you a Medigap plan or adjust costs based on your health.
You may not purchase a Medicare Supplement policy while you have a Medicare Part C plan. If during the first year of obtaining a Medicare Part C plan you choose to return to Original Medicare, you may be able to sign up for a Medigap policy.
How private insurance companies set Medicare Supplement premiums
Private insurance companies can set Medicare supplement premiums rates in three ways:
- Attained-age-rated – The premiums increase as you become older
- Issue-age-rated – Premiums are based on the age when you first purchased the policy allowing you to pay less the earlier you purchase
- Community-rate – Age does not play a factor and the premiums are the same for everyone
There may be other factors that affect premium rates and may include underwriting, inflation, geographic location and discounts. Check with the private insurance company to see how they set their Medicare Supplement prices before you purchase a plan.