A: Medigap plans are Medicare accessory insurance plans, and are sold by private indemnity companies that agree to abide by union Medicare guidelines. A Medicare enrollee can not purchase a Medigap policy unless he or she besides has Medicare Part A and Part B, and Medigap policies only cover one person — there are no joint policies, so a married couple will need two policies, one for each spouse. Medigap plans can not be used in junction with Medicare Advantage .
Although Medigap plans are issued by secret indemnity carriers, the policies are standardized. In all but three states, there are up to ten different Medigap plans available : angstrom, B, C, D, F, G, K, L, M, and N ( not all plans are available in all areas ), and there are besides high-deductible versions of Plan F and Plan G .
The plans are standardized, so a design G in Colorado provides the lapp coverage as a Plan G in California — although the insurers that offer the plans will be different, and the price will be different.
however, there are three states where Medigap plans are standardized differently :
Paying for your coverage
If you have original Medicare ( i, Medicare A and B ) along with a Medigap plan, you ’ ll give two premiums : one for Medicare Part B, and another for the Medigap plan ( assuming you have premium-free Medicare A ). Medicare B premiums are deducted from your Social Security check, but Medigap premiums are paid immediately to the individual insurance aircraft carrier that provides the plan .
Neither Medigap nor Original Medicare will cover outpatient prescription drugs, so enrollees can besides purchase Part D prescription drug coverage, which would be another divide policy with a divide monthly bounty ( some Medigap plans that were purchased anterior to 2006 included limited prescription drug coverage, and some enrollees have maintained these plans ; Medigap plans sold since 2006 — when Medicare Part D coverage became available — do not include any outpatient prescription coverage ) .
What does Medigap cover?
The determination of a Medigap design is to cover all or function of the charges that an Original Medicare ( Medicare A and B ) beneficiary would differently have to pay out-of-pocket for expenses that are covered — but not in full covered — by Medicare .
For the most part, Medigap plans are designed to cover out-of-pocket costs for services that are covered by Medicare, as opposed to care that Medicare doesn ’ thyroxine screen and that the enrollee has to pay wholly out-of-pocket. So Medigap plans do not cover dental and vision charges, for example, as Original Medicare does not cover routine dental and vision services .
Medicare A and B both have deductibles and coinsurance. After the deductible, Medicare Part B pays 80 % of the Medicare-approved amount, leaving the affected role to pay the other 20 %, with no cap on the out-of-pocket charges.
Medicare Part A besides has a deductible for each benefit period, and then coinsurance that starts to accrue after 60 days in the hospital ( although they call it coinsurance, it ’ s a repair sum per sidereal day, as opposed to a share of the cost ) .
There ’ s besides a coinsurance blame under Part A for skilled nurse facility stays that exceed 20 days ( $ 185.50 per day for days 21 through 100 in 2021 ). As with Part B, there is no crown on how much an enrollee can spend in out-of-pocket costs under Part A. Medigap plans protect Medicare beneficiaries from those deductibles and coinsurance charges – that is, they bridge the “ gap ” in Medicare .
Plans C, D, F, G, K, L, M, and N pay for at least of a parcel of skilled nursing adeptness manage ; Plans C, D, F, G, M, and N pay for emergency aesculapian caution when the enrollee is traveling in a foreign country. besides, Plans F and G can pay for excess doctor fees you may be charged under Medicare Part B. And all Medigap plans include hospice benefits .
Plans C and F besides cover the Medicare Part B deductible, which is $ 203 in 2021. Medigap plans that cover the Part B deductible are not available for purchase by enrollees who have become eligible for Medicare after the end of 2019. This was a change made under the terms of 2015 ’ south Medicare Access and CHIP Reauthorization Act ( MACRA ) .
The mind is to ensure that Medicare enrollees have some “ skin in the game ” and have to pay at least a helping of their own costs if and when they need outpatient care, as opposed to having auxiliary coverage that provides first-dollar coverage. so the most comprehensive Medigap plan available to newly eligible beneficiaries is now Plan G, which does not cover the Part B deductible .
But people who already had Medigap Plan F or C prior to 2020 have been able to keep their coverage. And people who were already eligible for Medicare anterior to 2020 are hush able to apply for Plan F or Plan C if they choose to do so ( checkup underwrite applies in most states and most cases if a person is applying for Medigap after their initial six-month registration window ends ).
plan F has long been the most popular Medigap plan, as it covers all of the out-of-pocket costs for services that are covered under both Part A and Part B. But it ’ s no longer available to newly eligible enrollees, and it besides tends to be the most expensive of the Medigap plans ( carriers set their own prices, so although the benefits are standardized, the prices can vary from one carrier to another ) .
As of 2018, more than half of all Medigap enrollees had Plan F, according to an AHIP analysis. But Plan G is quickly becoming a popular option — it covers everything design F covers except the Part B deductible, and it continues to be available to newly enrollees, which is not the case for Plan F .
Louise Norris is an individual health indemnity agent who has been writing about health policy and health reform since 2006. She has written dozens of opinions and educational pieces about the Affordable Care Act for healthinsurance.org. Her country health exchange updates are regularly cited by media who cover health reform and by other health indemnity experts .