Medicare Supplemental Insurance 101
What is Medicare Supplemental Insurance AKA Medigap?
This is supplemental Medicare insurance, also known as Medigap that is sold by private insurance companies. Medigap policies help pay for health care costs that are not covered under Medicare, such as co-payments and deductibles.
Some Medigap policies can also cover for foreign medical care if you happen to travel outside the United States.
Do I qualify for Medigap?
- You must already be enrolled in Medicare parts A and B.
- You cannot be enrolled in Medicare Advantage Plan and a Medigap policy simultaneously. You would need to cancel your Medicare Advantage Plan before your Medigap policy is in effect.
- Medigap can only cover one person, if your spouse needs Medigap coverage you will each have to purchase separate policies
- It is illegal for a company to sell you a Medigap policy if you already have a Medicare Medical Savings Account (MSA) Plan
- Medigap policies can only be purchased by insurance companies in your state that are specifically licensed to sell them
What is not covered under Medigap?
- Long-term care (nursing home, assisted-living, etc.)
- Eye and dental care (including eyeglasses)
- Hearing aids
- Prescription medications (you need Medicare Part D for coverage)
I have Medicare Advantage, is that Medigap?
No, there is a lot of confusion out there with various other plans. Here is a list of types of insurance that are NOT Medigap plans:
- Medicare Advantage Plans (HMO, PPO, Fee-for-service)
- Medicare Part D
- Medicaid
- Employer or union health insurance plans (e.g. – Federal Employees Health Benefits Program, FEHBP)
- TRICARE
- Veteran’s benefits
- Long-term care insurance
- Indian Health Service, Tribal, and Urban Indian Health plans
