If you choose to enroll in Original Medicare, one way to help offset the extra expenses that the program does not cover is to buy a supplemental (or Medigap) insurance policy.
Medigap insurance covers deductibles, copays, and other costs that are not covered by Medicare. Private insurance companies offer Medigap policies, but they are tightly regulated by states and the federal government. These programs are only available to people with Medicare Parts A and B — not to those who choose to enroll in a Medicare Advantage plan.
With so many different types of Medigap plans out there, it can be difficult to figure out which option is right for your situation. That’s where we can help. This supplemental insurance agency in Munster, Indiana is going to discuss some of the key things you should know.
What Types of Medigap Plans Are Available?
The federal government standardized Medigap plan types in 2010, introducing ten options denoted by the letters A, B, C, D, F, G, K, L, M, and N. In January 2020, two of the most comprehensive and popular plans, C and F, became unavailable to new program enrollees. This is due to a decision made by Congress in 2015 to prohibit Medigap from covering the annual deductible for Part B, which includes doctor appointments and other outpatient treatments.
Both C and F cover the deductible. However, Plan C differs from Plan F in that it does not pay the 15% extra costs that healthcare providers who do not enroll in Medicare are allowed to charge their patients — Plan F does.
Plan G is the most similar in design to Plan F. Excluding the Part B deductible, it covers everything F does. And Plan D is the most identical to Plan C. Excluding the Part B deductible and the additional costs that non-participating providers are allowed to charge their Medicare patients, it covers everything C does.
As any knowledgeable supplemental insurance agency in Munster, Indiana will tell you, it has been widely reported that Plan F is “going away.” That shorthand has generated a lot of controversies. We believe it is important to emphasize that nothing is changing for people who have been enrolled in Plans C and F.
However, if you turn 65 after January 2020 or become incapacitated after the first of the year and choose to purchase a Medigap plan, you will be unable to enroll in either C or F. Current Medicare enrollees, and anybody eligible for Medicare before January 1, 2020, can still pick from those plans.
Is There a Catch?
During your seven-month initial enrollment period (IEP), insurers offering Medigap insurance are not allowed to deny you coverage or charge you more for any preexisting condition. After that, everything is possible.
For example, if you do not get Medigap insurance during your IEP but decide to do so a year later, insurers can deny you or charge you more because of a preexisting condition. How that works varies greatly between states.
To ensure continuous, uninterrupted Medigap coverage for years to come, your supplemental insurance agency in Munster, Indiana will recommend enrolling in a Medigap plan at the same time you first enroll in Medicare.
Do not be baffled by the names of Medigap policies. The letter designations have no bearing on the Medicare program you choose.
Since Medigap plans are standardized, one insurer’s A or F plan covers the same items as another insurer’s A or F plan. Massachusetts, Minnesota, and Wisconsin are the only three states with their own standard policies.
So, how do the ten policies vary from one another?
Some policies have a high deductible, some have a higher cost-sharing, and some cover more costs. Therefore, you should evaluate your situation to determine which plan best matches your needs and what you can afford. Your local supplemental insurance agency in Munster, Indiana will be happy to assist with this.
Looking for a Supplemental Insurance Agency in Munster, Indiana?
Now that you’re aware of what’s available, are you ready to enroll in a Medigap plan? If so, and if you’re looking for the most trusted supplemental insurance agency in Munster, Indiana, Senior Care Insurance Services is here to help. Contact us today to schedule a free consultation with one of our agents.