What You Need to Know About Medicare: Medigap
Medigap is a “supplemental insurance” policy that is sold and administered by a private company meant to fill the gaps in the coverage provided by Part A and Part B. Most plans will help with Medicare co-payments and with paying for some care not otherwise covered by Medicare.
Usually, if you decide to drop Medigap you will not be able to get the same policy again.
You can directly compare Medigap plans by going to medicare.gov.
Remember the following when considering a Medigap plan:
- Be sure to buy your chosen Medigap plan within six months of getting Medicare Part B. Enrolling during the six-month open enrollment period will mean you are guaranteed to get the policy you want; otherwise the company can charge you more for the same coverage or can turn you down for coverage altogether.
- Make sure to keep your existing insurance coverage until your Medigap policy is in place to make sure you are not excluded from treatment or charged more for any preexisting conditions. If you do not sign up for coverage during the open enrollment period and have not had six months of medical insurance without a 63-day lapse immediately before enrollment, you can be charged more if you have preexisting health problems or they can exclude preexisting condition coverage for up to six months.
- Medigap plans are labeled A through N and offer varying levels of coverage. Each of the letters stands for a standardized plan so you know that you are getting the same coverage with one company’s plan G as you will get with another company’s plan G. (The types of coverage offered by each plan are detailed in a table at http://www.medicare.gov/supplement-other-insurance/compare-medigap/compare-medigap.html). This does not mean that you will pay the same premium with both companies or that the customer experience will be the same, so be sure to compare insurance providers. The cost will also vary depending on your location and age.
- In 2020, Medicare was no longer allowed to cover the Part B deductible, thus, Medigap Plan F and Plan C have been phased out. If you are enrolled in either of these plans, you will be grandfathered in, however, premiums will be subject to increases. Once prices increase, you may want to revisit your plan. Changes can be made during the open enrollment period between October 15th and December 7th every year. Medigap plans C and F are not available to people who were newly eligible for Medicare on or after January 1, 2020.
Sources:
- “When Can I Buy Medigap?” www.medicare.gov, www.medicare.gov/supplement-other-insurance/when-can-i-buy-medigap/when-can-i-buy-medigap.html.
- “When Can I Buy Medigap?” www.medicare.gov, www.medicare.gov/supplement-other-insurance/when-can-i-buy-medigap/when-can-i-buy-medigap.html. Under “I have a pre-existing condition.”
Categories
Recent Insights
-
Rebuilding Financial Confidence After Divorce: Managing Risk & Moving Forward
Divorce is not just an emotional transition—it’s a financial one, too. The process of separating assets, redefining financial goals, and adjusting to a new financial reality can feel overwhelming. But with the right mindset and strategies, you can regain control and build a future that aligns with your new chapter in life. Understanding Financial Risk…
-
Giving with Pride: Smart Strategies for LGBTQIA+ Donors
Understanding the Landscape of LGBTQIA+ Philanthropy LGBTQIA+ donors are uniquely positioned to drive meaningful change, but the philanthropic landscape remains complex and underfunded. Historically, LGBTQIA+ organizations have faced significant challenges in securing resources, often competing with larger, more established nonprofits for limited funding. This disparity highlights the importance of strategic giving to ensure that your…
-
How to Build Lasting Relationships that Propel Your Business and Elevate Your Community
As business leaders, our role in the community extends beyond charitable acts—it’s a strategic initiative that strengthens both our businesses and the communities we serve. Building meaningful community partnerships is not just about doing good; it’s about doing it strategically to foster deeper relationships, enhance your brand, and make a lasting difference. But where do…
-
Talk Your Chart | From Tax Trends to Firing a God Portfolio: Economic Insights | Episode 68
In Episode 68 of Talk Your Chart, Marcos and Brett dive into a jam-packed discussion of economic trends, market psychology, and long-term investing. From tax receipts and Social Security’s ticking clock to why even a ‘God’ portfolio gets fired—this one covers it all and more. Charts available for download here.
-
The Other Behavioral Gap: Why Total Return Investing Could Be the Key to Your Financial Freedom
What is the Other Behavioral Gap: If you’ve been investing for a while, you’re likely familiar with the first major behavioral gap: emotional investing that is driven by fear or greed. These forces drive you to buy high and sell low. It’s a pattern that often shows up when market fluctuations cause knee-jerk reactions. But…