If you are considering a Medicare Supplement – or Medigap policy – for the first time, there are some important facts you should know. To begin with, you have to be enrolled in Medicare Part A and Part B to sign up for a Medigap plan. If you choose to sign up for a Medigap plan, you then will pay the private insurance company a premium in addition to your Part B premium that you pay to Medicare. Occasionally we will speak with someone who thinks the Part B premium paid to Medicare covers the cost of their Medigap plan. This is not the case. The Part B premium paid to Medicare covers the benefits (discussed in other blog posts) that Medicare allows you under Part B.
Another fact to keep in mind is that a Medigap policy will only cover one person. This is also true of Medicare Advantage and prescription drug plans. If your spouse wants a Medicare plan of any type, they will have to sign up themselves. However, some Medigap companies will give you a premium discount if you are married or live with someone over the age of 60. This can be a huge savings for you.
Medigap policies do not cover most prescription drugs. If you want prescription drug coverage you will need to purchase a stand-alone prescription drug plan from a private insurance company. Medigap policies are designed to supplement, or fill in the gaps of, Original Medicare. When a claim is filed with Medicare, Medicare will pay first and the Medigap policy will pay its part depending on the type of plan you have chosen. Therefore, because Original Medicare does not cover most prescription drugs, your Medigap policy will not have that coverage either.
If you have questions regarding any aspect of Medicare or Medicare health plans feel free call us at Alabama Health Guidance (256-648-5710), stop by our office at 885 Florence Blvd. (Four Lane Shopping Center), or email Ikey Fowler at ikey@alabamahealthguidance.com.