Medicare Supplement Insurance Plans, also known as Medigap plans cover certain out-of-pocket costs that Original Medicare Supplement Part A and Part B does not cover. In simple terms, a Medigap plan fills in the “gaps” left behind by Original Medicare.
Every Medigap policy must follow federal and state laws designed to protect you. It must be clearly identified as “Medicare Supplement Insurance Plan”. Insurance companies can sell you only a “standardized” policy identified in most states by letters (currently Plans A through N). All policies offer the same basic benefits but some offer additional benefits. It is important for you to find the plan that best fits your needs.
For example, the benefits provided by a Plan A Medigap is the same with every insurance company that sells Plan A, regardless of location. Because of this, it is easy to compare Medicare Supplement Insurance Plans. Your comparisons will be mostly based on the cost of the premium.
However, not all carriers offer all plans. Any insurance company that sells Medigap insurance is required by law to offer Medigap Plan A. If an insurance company wants to offer other plans, it must sell either Plan C or Plan F in addition to any other plans it would like to sell. Outside of that, plan offerings may vary from company to company.
Does This Mean That Medigap Policies Are Standardized?
Under the Omnibus Budget Reconciliation Act of 1990, Medigap plans became standardized. Since then, there have been several rounds of reform, each bringing the addition of new plans and the retirement of some older ones. The most recent change was made in June of 2010 under the Medicare Modernization Act (MMA) when the popular Plan J was dropped from all new sales. Two new plans M and N were also added. These new plans offer higher cost-sharing and lower premiums to beneficiaries.
How Do I Compare Medigap Plans Side-By-Side?
The chart below provides a brief overview of each of the ten current Medigap plan offerings.
For more detailed information on any of these plans or your other Medicare Health Plan options, you may contact a Medicare Pathways sales agent by calling 866-466-9118, or requesting a no-cost, no-obligation quote by clicking here now.