Overview of Medigap Insurance

A Medigap policy is a type of private insurance that helps you pay for some of the costs that Medicare doesn't cover. You must have Medicare Parts A and B to be eligible to purchase a Medigap policy. 

What does it do? 
A Medigap policy is health insurance sold by private insurance companies to fill gaps in original Medicare coverage. Medigap policies can help pay your share of the costs of Medicare-covered services, e.g., coinsurance, copayments and deductibles. Some Medigap policies also cover certain benefits original Medicare doesn't cover. 

It's important to understand that Medigap policies do not cover your share of the costs under other types of health coverage, including Medicare Advantage plans or private or group health insurance policies. 

Policies must abide by certain laws 
Every Medigap policy must follow federal and state laws designed to protect you. Medigap insurance companies in most states can only sell you a "standardized" Medigap policy identified by letters A through N. 

Insurance companies that sell Medigap policies do not have to offer every Medigap plan. However, they must offer Medigap Plan A (the most basic plan) if they offer any Medigap policy at all. If they offer any plan in addition to Plan A, they must also offer Plan C or Plan F (the most comprehensive plans). All Medigap policies must be clearly identified as “Medicare supplement insurance” per federal laws.

Each standardized Medigap policy must offer the same basic benefits, no matter which insurance company sells it. In other words, a Medigap Plan C policy offered by Insurance Company One must offer the same benefits as a Medigap Plan C policy sold by Insurance Company Two. Therefore, cost and company service are usually the only differences between Medigap policies with the same letter sold by different insurance companies. Fortunately, Medigap policies are guaranteed renewable even if you have health problems; the insurance company cannot cancel your Medigap policy as long as you pay the premium. 

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