Medicare Supplement (Medigap) Plans: Learn About Coverage, Costs, and Eligibility

Medicare Supplement Plans Medigap Plans

Turning 65 marks the beginning of an American’s Medicare experience. At first, it may seem like a complex puzzle with endless choices, but a Medicare expert can help make your journey easier. Your decisions on coverage options will largely be based on your state of health. Here are important insights to know about Medicare supplement plans.

What Is a Medicare Supplement (Medigap) Plan?

At the core of a Medicare plan are Parts A and B. A Medicare supplement (also called Medigap) plan is designed to fill the gaps not covered in Parts A and B. These supplemental plans are sold by private insurance companies that comply with the requirements of the Centers for Medicare and Medicaid Services (CMS). Supplemental plans are only sold to individuals, not couples.

What Does Medicare Supplement Cover?

Medicare supplement plans cover various medical costs not covered in Parts A and B, such as blood tests and access to a skilled nursing care facility. A supplement plan covers costs associated with coinsurance or co-payment for Parts A and B. It further covers deductible costs for Parts A and B as well.

Even after Medicare benefits are exhausted, supplemental coverage can extend Part A benefits for up to a year. Be aware that supplement plans do not cover prescription drugs, which are covered in Part D.

Average Cost of Medicare Supplement Plans

Location and age are the two main factors that affect the cost of a Medicare supplement plan. If you live in a high-risk area, you’ll likely pay a higher premium. Rates go up from age 65 to 85 simply because statistics show older drivers pose higher risks on the road for themselves and other drivers.

The cost of a Medicare supplement plan is determined by the insurance provider in three different ways. The community-rated method allows everyone enrolled in Medigap at any age to pay the same monthly premium. The issue age-rated method sets your premium based on your age at the time of enrolling in Medigap. The attained age-rated method prices the premium according to your current age and will keep going up the older you get.

Who Is Eligible for Medicare Supplement?

You are eligible to purchase a Medicare supplement plan if you are at least 65 and have already enrolled in Medicare Part B. Certain individuals with disabilities may qualify for Medigap under age 65.

Learn How to Apply for a Medicare Supplement Plan with Long Term Care Advisors

You will feel more comfortable about your retirement once you’ve clarified the types of medical coverage you need. Contact us here at Long Term Care Advisors for more information on Medicare supplement plans.