Medicare Supplemental Insurance (Medigap)

If you’re approaching or are over 65, you’ve probably been overwhelmed with mail, commercials and phone calls talking about Medicare. It can all be very confusing, but we’re here to help you understand more about Medicare Supplement Insurance, also known as Medigap, in Arizona and New Mexico.

Education Moment – Medicare Supplemental Insurance (Medigap)

A Medicare supplement (Medigap) insurance policy can help pay some health care costs, like copayments, coinsurance, and deductibles, not covered by Original Medicare.

Some Medigap policies also offer coverage for services that Original Medicare doesn’t cover, like medical care when you travel outside the U.S. If you have Original Medicare and you buy a Medigap policy, Medicare will pay its share of the Medicare-approved amount for covered health care costs. Then your Medigap policy pays its share.

A Medigap policy is different from a Medicare Advantage Plan. Those plans are ways to get Medicare benefits, while a Medigap policy only supplements your Original Medicare benefits.

8 things to know about Medigap policies*

This information is provided by medicare.gov; you can read all about Medigap on the Medicare site or you can talk to us. We can help you work through all your options and answer any questions you may have.

1. You must have Medicare Part A and Part B.
2. If you have a Medicare Advantage Plan, you can apply for a Medigap policy, but make sure you can leave the Medicare Advantage Plan before your Medigap policy begins.
3. You pay the private insurance company a monthly premiumfor your Medigap policy in addition to the monthly Part B premium that you pay to Medicare.
4. A Medigap policy only covers one person. If you and your spouse both want Medigap coverage, you’ll each have to buy separate policies.
5. You can buy a Medigap policy from any insurance company that’s licensed in your state to sell one – such as Alpha & Omega Financial Group in Arizona and New Mexico.
6. Any standardized Medigap policy is guaranteed renewable even if you have health problems. This means the insurance company can’t cancel your Medigap policy as long as you pay the premium.
7. Some Medigap policies sold in the past cover prescription drugs, but Medigap policies sold after January 1, 2006 aren’t allowed to include prescription drug coverage. If you want prescription drug coverage, you can join a Medicare Prescription Drug Plan (Part D).
8. It’s illegal for anyone to sell you a Medigap policy if you have a Medicare Medical Savings Account (MSA) Plan.

*Source: Medicare.gov