Lesson 5: Medigap Supplement Insurance

Medigap, or Medicare Supplement Insurance, is additional coverage you can buy from a private insurance carrier to help cover out-of-pocket costs from your standard Medicare coverage (Part A and B). To buy a Medigap policy, you must already be enrolled in Medicare A and B. Some Medigap plans can even provide additional coverage that standard Medicare doesn't, for example, foreign travel emergency care.

Medigap plans offer different benefits, and are differentiated by the letter associated with them, which is typically A-D, F, G, and K-N. All Medigap plans are considered "standardized", meaning all plans with the same letter offer the same benefits, no matter who the carrier is. The only difference is the price of the Medigap plan, which is determined by the private insurance company you buy from.

As outlined previously, Medigap covers out-of-pocket expenses associated with standard Medicare (A and B ) coverage. These costs include:

• Copayments
• Coinsurance
• Deductibles

Medigap plans do not cover:

• Nursing home or assisted living care
• Vision or dental
• Hearing aids
• Eyeglasses
• Private nursing

There is a 6 month "Medigap Open Enrollment" within the first month of enrolling in Medicare Part B, plus you must be 65 or older. This enrollment period is a one-time enrollment and does not repeat every year.

During this period, you can enroll in any Medigap plan you want, and the insurance provider cannot deny you coverage based on pre-existing conditions. After this period ends, you may not be able to buy a Medigap plan (depending on the carrier).