Medicare Supplement

Medicare Supplement, also known as Medigap policies, are sold by private insurance companies to help you cover the gaps and other out-of-pocket costs with Original Medicare (Parts A & B). While Medicare Advantage plans are created by the private insurance companies, Medigap plans are created by the government. This means that all Medigap plans under a specific policy are the exact same across all insurance carriers. In other words, a Plan G with insurance company 1 in North Carolina is the exact same as a Plan G with insurance company 2 in South Dakota, the benefits are exactly the same across the country regardless of the state you live in or insurance company you use.

If you are interested in a Medigap Plan, there are a few other pieces of information you should know.  A Medigap plan will have a monthly premium for the plan along with your Medicare Part B monthly premium and your monthly premium for a standalone Part D Plan (if you have one). Medigap premiums typically increase every year. There are no prior authorizations with a Medigap Plan, meaning as long as Medicare covers the procedure/treatment, you can begin asap. Unless you are in a guaranteed issue enrollment period, your health does matter with a Medigap Plan, you will be asked health questions and can be subject to medical underwriting and you can have your policy rated (increased premium) if you are not in good health. Typically, it’s easier to switch from a Medigap Plan to a Medicare Advantage Plan but can be difficult to go back to a Medigap Plan due to medical underwriting (if you remember there is no medical underwriting for a Medicare Advantage Plan).  Lastly, and this is not a big issue for most people but something we like to mention: with a Medigap Plan, you will have 3 cards to keep track of, your Original Medicare card, Medigap card, and Part D card. All 3 are important to make sure you are not paying more than necessary.

Medigap policies are differentiated by an alphabet character, there are a total of 10 plans lettered A-N. See the chart below for a detailed breakdown between the different plans.