Speaking of the litany of terms in our previous Medicare discussion, you’ve probably also heard of Medigap. Medigap, also known as Medicare supplement insurance, goes hand in hand when considering the right option for Medicare. Medigap helps to pay for some health care costs that Medicare doesn’t cover, including deductibles and co-pays. Medigap is not a federal program; like Medicare Advantage, Medigap is sold through private insurers. Unlike Medicare Advantage, only those enrolled in original Medicare can purchase Medigap supplement insurance.
Insurers may offer up to 10 different Medicare supplement plans, each labeled with a letter. This can be confusing because Part A and Part B of original Medicare are different from Medigap Plan A and Plan B, and certain Medigap plans (i.e., Part C and F) are no longer available to those newly eligible for Medicare after 2019. As noted above, Medigap is not a federal program, but federal rules do standardize the benefits under each type of plan. However, because these plans are sold by private insurers, each insurer determines their own premiums, so it is important to compare plans from different insurers.
There are many factors to consider when choosing between original Medicare with a Medigap supplement plan and Medicare Advantage. For example, you may want to consider the freedom to choose your own doctors and facilities, the limitation to a certain network of doctors and facilities, or how to best structure premium costs, copayments, and out-of-pocket expenses for your specific healthcare concerns. If you have any questions on Medicare, Medicare Advantage, or Medigap or would like a referral to an independent insurance agent to help you review policies, please don’t hesitate to reach out.
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