Original Medicare coverage comes with out-of-pocket costs which fortunately can be covered through a Medicare Supplement (Medigap) plan. What exactly do we mean by out-of-pocket costs? Out-of-pocket medical costs regarding Medicare refer to Medicare healthcare expenses you have to pay yourself. Medicare Supplement Plans (Medigap) help fill “gaps” in the Original Medicare coverage to reduce your costs. These costs include Medicare copayments, coinsurance, and deductibles. When you enroll in a Medicare Supplement (Medigap) plan, Medicare pays for its share of your health costs, and your Medigap plan covers your portion of the costs. For example, Medicare only pays for 80% of the Medicare approved amount for outpatient services, while you typically would have to pay the remaining 20%. The Medicare Supplement (Medigap) policy would help you cover the 20% portion of the remaining costs. Some Medigap policies also provide coverage for additional services like medical care when you travel outside of the U.S. and excess charges.
Most Seniors end up getting some sort of supplemental plan in order to get these costs covered.
Important Notes on Medicare Supplement (Medigap) policies:
- Medicare Part A and Part B are required.
- Medigap policies supplement Original Medicare, not replace it.
- You cannot have a Medigap policy if you have a Medicare Advantage Plan. On a Medicare Advantage Plan you are responsible for the co-pays.
- You must pay a small monthly premium to obtain a Medicare Supplement (Medigap) plan, but in the long run, your total out of pocket expenses will most likely be reduced because your Medicare Co-Pays and Co-Insurance for Medicare Approved Amounts will be covered.
- Medigap policies only cover one person.
- Medigap policies sold after January 2006 no longer include prescription drug coverage, so you must join Medicare Part D separately.
- You can purchase a Medicare Supplement (Medigap)MedSup policy from any licensed insurance agent in your state.
- The Benefit Link has licensed Insurance agents in all 50 states, ready to assist you.
It is always best to check with your insurance provider for specific information regarding your plan options. The Benefit Link can help you compare and obtain a Medicare Supplement (Medigap) Insurance plan to get your Medicare Co-Pays and Co-Insurance covered and help you save on costs.