An Original Medicare Plan, both Part A and Part B, is taken up by people to pay for most of their health-care services and supplies. However, a lot of these services still go uncovered which requires the individuals to pay for them. Usually, these services are expensive and need insurance cover too. Some of these services can be covered by an additional Medicare Supplement Plan which is also commonly known as Medigap. Some of the services covered under a Medigap plan include copayments, coinsurance, and yearly deductibles. Some other services which are covered by a Medigap plan and not by an Original Medicare are emergency abroad travel coverage or Part B extra charges. Two Medigap plans out of the total of ten are also inclusive of yearly out-of-pocket limit, which are not covered by Original Medicare.In other words, by taking a Medigap policy an individual seals the “cracks” in Original Medicare coverage.
How do Medicare Supplement plans work in conjunction with Medicare?
As the name suggests, Medicare Supplement Plans are a supplement to your Original Medicare Coverage. This implies that your enrolment in an Original Medicareis a must for you to be eligible to be enrolled in a Medigap plan. Medigap plans are not meant to be individual benefits plan. Also, a continued enrollment in an Original Medicare is a must for you to be able to avail hospital and medical coverage.
Every state has slightly different rules regarding the eligibility for enrolling in a Medicare Supplement Plan. Some states don’t allow individuals under the age of 65 to get a Medigap plan if they have a Medicare owing to the reasons of disability, last-stage renal illness, or amyotrophic lateral sclerosis. States don’t need to propose Medigap coverage to recipients under the age of 65.If you are looking for a Medigap cover and have a Medicare coverage but fall into the category of less than 65, then you should check with the insurance department of the State to know your eligibility.
It is very important to be aware of the costs which will and will not be covered by a Medigap plan. If you are looking for a plan that coversthe costs of prescription drugs (Part D) then a stand-alone Medicare Prescription Drug Plan is your go to plan and not Medigap. Also, Medicare Supplement plan can only cover costs in Original Medicare so you can’t use it as a supplement to Medicare Advantage plan. As mentioned above, Medicare Supplement Plan 2018 works as a gap filler of Original Medicare. Take an example of a situation where you have an ambulance bill of $4,000. In case you have by now met the yearly Medicare Part B deductible then the Medicare plan will cover 80% of the said cost i.e., it’ll pay first. If you have also enrolled or a Medicare Supplement plan that includes Part B copayments and coinsurance expenses, then your Medigap policy would pay for the rest 20% coinsurance of your $5,000 ambulance bill. Some Medigap plans also cover Part B deductibles.