When approaching your Medicare decision, it can be overwhelming with all of the different options and plans available to you. The purpose of this blog is to get very clear on what Medigap is and how it can benefit you and your Medicare benefits.
Key Takeways
- Medigap is also referred to as Medicare supplement.
- You must be enrolled in Medicare Part A and Medicare Part B to get a Medigap plan.
- In most states, you can only enroll in a Medigap plan during your enrollment period to not be subject to an insurability review.
- There are 10 Medigap letters to choose from. Each letter offers different coverage and benefits.
- You can get help from an independent Medicare expert who knows the ins and outs of Medicare to ensure your decision is in your best interest.
What is Medigap or Medicare supplement?
How does Medigap work?
Medigap vs. Medicare Advantage
How to choose a Medigap plan
How to enroll in a Medigap plan
Get help with choosing a Medigap plan
What is Medigap or Medicare supplement?
Medigap, also known as Medicare supplement, is a gap coverage plan to cover costs that Medicare Part A and Medicare Part B do not cover.
When joining Medicare, you can go down two Medicare paths: Original Medicare or Medicare Advantage. Those who choose Original Medicare will likely also get a supplement plan and a Medicare Part D plan. You must be in enrolled in Medicare Part A and Medicare Part B to enroll in a Medigap plan.
Since Medicare Part A and Medicare Part B only cover 80% of covered services, you will be responsible for the remaining 20% of the cost. This is where Medigap comes in, it will cover the remaining 20% of the costs so that you do not have to.
How does Medigap work?
Medigap is sold by private companies like Aetna, Blue Cross Blue Shield, United Health Care, Cigna, etc. As stated above, these plans cover the “gap” in coverage from the costs of Medicare Part A and Medicare Part B.
These plans can help you cover costs like deductibles and co-pays. It can also help cover medical costs when traveling overseas.
Medigap vs. Medicare Advantage
Medicare Advantage and Medigap are not the same and you cannot have them at the same time. If you enroll in a Medicare Advantage plan, you cannot buy a Medigap plan. You can only have a supplement when you go down the Original Medicare path.
Which is better?
This question depends on your unique situation. However, here is a little breakdown:
| Medigap plans | Medicare Advantage plans |
| Higher monthly premiums | Lower monthly premiums |
| Fewer out-of-pocket costs | More out-of-pocket costs |
| Can work in all states | Works only in your state |
| Do not usually need a network provider | Must use a provider network |
While Medicare Advantage plans may save you in monthly premiums, we all pay for our health care one way or the other. Supplement plans tend to add more flexibility to doctors, whereas Medicare Advantage requires you to use the doctors in their network.
How to choose a Medigap plan
There are currently 10 letters to choose from: A, B, C, D, F, G, K, L, M, and N. However, it’s important to note that Plan C and F are not available to new Medicare beneficiaries, only those who were eligible for Medicare before January 1st, 2020.
Each letter has varying coverage options and offers different services. Every company is required to offer the same coverage for every letter. That means if Company A offers Letter G benefits, Companies B-Z will have the same benefits for Letter G. They are standardized. However, not every company will offer the same pricing.
The cost of each plan will vary from state to state, county to county and just because Company A is cheaper than Company B, it doesn’t mean that is the right choice.
There are many factors to consider when choosing a letter and company. This is all based on your needs and your location.
How to enroll in a Medigap plan
When you first join Medicare, you will have a 6-month initial enrollment period to join a Medigap plan without being subject to insurability review. This means, no matter your health conditions, you can join a letter. There are other special enrollment periods that allow you to join a plan without an insurability review.
This is why it is critical to get your Medicare decision right the first time. If you join a Medicare Advantage plan at first, then decide the coverage is not what you want, you may not be able to get into a Medigap plan down the road. You could be considered uninsurable.
Now, once you’ve picked a Medigap letter and company, you can either enroll directly with the company or through a trusted financial advisor.
Get help with choosing a Medigap plan
Making your Medicare decision is a life-long choice. The path and plans you choose the first time are likely the plans you will have for the REST OF YOUR LIFE. Due to insurability rules behind Medigap plans, you may not get a second chance.
Medicare is complicated, but we are here to help you. The Medicare Coach is an independent Medicare expert helping seniors easily make their right Medicare decision to protect their retirement savings.
The Medicare Coach is NOT an insurance company, agent, or broker meaning we do not make commissions off of our recommendations. This ensures that our advice is in your best interest.
After helping thousands of people across the country, we know all of the unique Medicare rules to give you peace of mind your decision is best for you.
We offer a FREE Medicare workshop to help you through your Medicare decision. This is a live workshop. You can sign up by clicking below.
