What Is A Medigap Health Insurance Policy And How Does It Work?

By Cathy Wilson Posted in Health Insurance News



Medigap health insurance is a type of health insurance supplement provided by health insurance companies to Medicare recipients. Those eligible for Medicare can purchase this supplemental insurance to cover any gaps in their Medicare policy. Since medical expenses can get out of control even with Medicare, supplemental insurance helps cover the gaps that Medicare does not.

Who Is Eligible

Anyone who is on Medicare is eligible for Medigap insurance. Medigap insurance is offered by several different insurance companies and has varying levels of coverage, Since it is only a supplemental policy and not a full coverage policy the premiums are lower. It is after all, geared towards those on a fixed income. According to a 2006 poll, 18% of of all patients on Medicare were also covered by a Medigap policy.

How It Works

Medigap policies are regulated through the Medicare government office. The twelve supplement plans are labeled A through L and are sold and governed through private insurance companies.  The premiums vary depending on amount of coverage and age of the patient. The private insurance company will help you choose a supplemental policy that compliments you current Medicare policy. Unfortunately, those on fixed incomes may find supplemental insurance too expensive. Hopefully, this problem will be remedied in the Senate when they pass some sort of comprehensive health care bill.

Drug Coverage

If you have an older Medicare plan, then chances are it also has a drug coverage portion that is covered under your current plan. If you signed up for Medicare after June of 2006 then you probably have Medicare Part D, which offers specific drug coverage. Insurance companies have also developed Medigap drug coverage supplemental policies as well. If you don’t need the extra insurance coverage but need the extra drug coverage then you can purchase a policy that helps cover the sometimes outrageous costs of medications.

Related posts:

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  2. What Does Supplemental Health Insurance Entail?
  3. How Much Will I Pay For Health Insurance In Retirement?
  4. What Is A Health Savings Account For Health Insurance Coverage?
  5. Why Won’t State-Run Health Insurance Versus Fed’s Work?






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