Medigap Insurance - Supplemental Medicare Plans
Health Care Option – What is an Insurance Medicare Supplemental?
Oct 14, 2009
With the cost of health care rising, it is important to understand the available, affordable health care options out there. For those on Medicare who need additional health insurance, supplemental medicare plans are available from a number of private insurers (such as Humana and Aetna). Understanding what a Medigap plan is can go a long way toward reigning in the future cost of health care for both individuals and families.
Medigap Insurance - Supplemental Medicare Plans' Uniformity
It is first important to understand that Medigap plans, while sold by a number of private health insurance companies, are all standardized in an identical way (from letters A-L). Every private insurance company which sells different supplemental Medicare plans are required to have the same basic benefits, meaning regardless of which private company you purchase your Medigap insurance supplemental from, the only significant differences when comparing policies (A-L) should be price.(Note: Massachusetts, Minnesota, and Wisconsin standardize their supplemental medicare plans in different ways.)
What Medigap Insurance (Supplemental Medicare Plans) Won't Cover
According to Medicare.gov, "Medigap policies don’t cover long-term care (like care in a nursing home), vision or dental care, hearing aids, eyeglasses, and private-duty nursing."
It is also important to note that many bridge plans, including Medicaid, TRICARE, veterans' benefits, and long-term insurance policies are not Medigap plans and cannot function as an insurance supplemental in the same manner.
Things to Know Before Buying a Medigap Insurance Supplemental
The following suggestions come from Medicare.gov's guide entitled "Choosing a Medigap Policy:"
- Supplemental medicare plans can only be purchased if you have Medicare Part A and Part B;
- Keep in mind you will be paying a separate premium for your Medigap coverage to whichever private insurance company you've purchased any of your supplemental medicare plans;
- Medigap insurance supplemental plans only cover one person;
- It's possible to purchase Medigap from any state-licensed private insurance company providing health care options;
- Any Medigap insurance supplemental plan is "guaranteed renewable," meaning you can't be refused Medigap as a health care option if you already have it;
- Medigap insurance supplemental plans do not cover prescription drugs.
Steps to Buying a Medigap Insurance Supplemental Plan
- Choose which benefits are essential and match the Medigap insurance supplemental plan (A-L) which suits your needs (reference Medicare.gov's "Choosing a Medigap Policy," page 26);
- Find out which private insurance companies and health care option providers in your state sell supplemental Medicare plans;
- Compare costs—health care options that are identical should be compared;
- Purchase the insurance supplemental that is right for you (reference Medicare.gov's "Choosing a Medigap Policy," page 30).
Barack Obama's Health Care Plan and Medigap
While some versions of the HR 3200 could possibly lead to cuts in Medicare Advantage plans—though this is entirely dependent on which version is finally passed—there are no such cuts which would affect Medigap thanks to the AARP.
According to the Medicare Rights Center, as of September 9, 2009:
Both the Senate proposal and the House bill include provisions that would create greater access to primary care and preventative services for people with Medicare though there are slight differences. Both also fund comparative effectiveness research and realign payments incentives for providers in the hopes of raising the quality of care provided to people with Medicare, for example, by rewarding hospitals with lower readmission rates through higher payments.
Of course, until a final health reform bill passes through both houses of congress and is signed by President Obama, whether any changes to Medigap or Medicare funding will be made remains unknown. Current bills are scheduled to be brought to both floors of Congress in the fall of 2009, and health care reform legislation may be passed by the beginning of 2010.
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