How to maximize MediGap insurance

Image source: pbs.org

Also known as MediGap, Medicare supplement insurance helps take the costs not included in the coverage provided by original Medicare. Taken together, the two policies can help pay for a broad assortment of medical bills and reduce the amount of out-of-pocket medical expenditures. For many older adults, MediGap insurance is an excellent investment, providing the coverage necessary to prevent surprise hospitalization expenses.

Medicare supplement insurance coverage, however, can vary broadly. It is also important to remember that MediGap insurance cannot cover long-term care costs, nor can it pay for dental care, vision care, and, in many cases, prescription drugs. Moreover, MediGap coverage is individual; for your spouse to be covered, you would need to buy one.

Image source: pbs.org

Many companies offer a basic package of MediGap insurance policies that come in lettered plans. Despite differences in other individual offerings, which vary by the company, each type of lettered plan has a mandated set of fixed benefits that are uniform throughout multiple states, with few exceptions. MediGap providers in Massachusetts, Minnesota, or Wisconsin are subject to different governing laws.

Some standard plans (E, H, I, and J) can no longer be purchased by new subscribers, and the previous standard plan of choice in the past few years, Plan F, is being discontinued in 2019. In the past, many people have preferred MediGap Plan F because of its comprehensive coverage; Plan G is a recommended alternative that offers similar coverage.

For individuals under original Medicare, the best times to acquire MediGap insurance are within at least a day after one’s 65th birthday or up to six months of signing up for Medicare Plan B. This would allow them to guarantee their coverage and purchase it at the best price available.

Delos H. Yancey is the CEO of State Mutual insurance, which provides coverage for policyholders across 44 states and the District of Columbia. Visit his company’s website for more on its policies.