Sunday, May 12, 2013

CMS Publishes 2013 Choosing a Medigap Policy Guide

The official 2013 Guide to Health Insurance for People with Medicare has been published by the Centers for Medicare and Medicaid Services (CMS).  This important guide covers topics such as:

  • What is a Medicare Supplement Insurance (Medigap) policy
  • What Medigap policies cover
  • Your rights to buy a Medigap policy
  • How to buy a Medigap policy

A Medigap policy is private health insurance that wraps around the Original Medicare Program (Parts A and B) by filling in gaps to the extent provided by the specific Medigap plan purchased.  This means it helps pay some of the health care costs that Original Medicare doesn't cover, such as copayments, coinsurance and deductibles.

Medigap plans sold in the U.S. are known by their "plan letter name" such as Plan F or Plan N.  Consumers who buy a Medigap policy typically also purchase a Stand-alone Medicare Part D Prescription Drug Plan (PDP) since today's Medigap plans don't offer prescription drug coverage.

A Medigap policy is different from a Medicare Advantage Plan (like an HMO or PPO) because those plans deliver all of your Medicare benefits, while Medigap just supplements your Original Medicare benefits.  Under a Medicare Advantage Plan (also known as the Medicare Part C Program), you have the convenience of having coverage for doctors, hospitals and prescription drugs all under one roof.  Medicare Advantage plans utilize provider networks, however, which can be more restrictive compared to the simpler requirement under Medigap policies to visit Medicare-approved providers.

Click Here To Download the 2013 Choosing a Medigap Policy Guide

Until next time,

Andrew Herman
AH Insurance Services, Inc.