Why Are Medicare Supplement Plans Called “Medigap”??

Medicare supplement plans sold by private health insurance providers to Medicare beneficiaries are intended to cover health care expenses that are not fully covered by Medicare. When medical costs are offset by Medicare reimbursements, the remaining amount that Medicare does not cover is usually referred to as a “gap” in Medicare coverage. Hence, Medicare supplement plans are sometimes referred to as “Medigap” plans.

What do Medicare supplement plans cover?

Medicare supplement plans may cover deductibles, co-insurance, co-payments and some out-of-pocket costs. In addition, it is possible that Medicare supplement plans will cover health care costs that Medicare does not cover, e.g., emergency health care expenses incurred while traveling outside of the United States.

By enrolling in both Original Medicare and a Medicare supplement plan, the “gaps” in health care costs are covered. After Medicare reimburses for Medicare-approved health care costs, the Medicare supplement plan kicks in to cover its share of the expenses.

Who regulates Medicare supplement plans?

Federal and state governments regulate the plans that insurance companies provide. Each company that sells Medicare supplement plans must offer the same benefits. This makes it easier to compare policies. These plans are designated by an alphabetic system of capitalized letters, A through N. Each insurance company chooses which Medicare supplement plans it will offer. In other words, an insurance company does not have to offer every type of Medicare supplement plan A through N.

Enrollment in Medicare supplement plans

A person is allowed to enroll in a Medicare supplement plan after they have successfully completed the enrollment process for Medicare Part A and Part B. The open enrollment period for Medicare begins three months before an applicant’s 65th birthday and ends three months after. During this period, a Medicare beneficiary can obtain a Medicare supplement plan without having to submit to a medical screening. That is, Medicare supplement plans are offered on a “guaranteed issue” basis.

Related posts

1. What Doesn’t A Medicare Supplement Policy Cover?
2. How Is The Medicare Supplement Open Enrollment Period Calculated?
3. What If My Medicare Supplement Open Enrollment Period Is Over?
4. Why Are Medicare Supplement Plans Called Medigap?
5. Medicare Supplement Open Enrollment – How Does It Work?

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