2014 Choosing a Medigap Policy Guide

The official 2014 Guide to Health Insurance for People with Medicare was published earlier this year by the Centers for Medicare and Medicaid Services (CMS).  This updated guide covers important topics such as:

• What is a Medigap policy
• What Medigap policies cover
• Your rights to buy a Medigap policy
• How to buy a Medigap policy

A Medigap policy is also known as 'Medicare Supplement'.  It is a private health insurance policy that supplements the Original Medicare Program (Parts A and B) by covering out-of-pocket costs not paid for by Medicare (such as co-payments, coinsurance and deductibles).

Medigap, or Medicare Supplement, policies are sold by their plan letter name such as "Plan F" or "Plan N".  Consumers purchasing Medigap typically also buy a Stand-alone Medicare Part D Prescription Drug Plan (PDP) since today's Medigap policies are not designed to cover prescription medicines.

Medigap coverage is not the same as the Medicare Advantage program (Part C of Medicare).  When you enroll into a Medicare Advantage plan, all of your Medicare benefits are delivered by a private insurance company.  Medicare Advantage plans most often are HMOs or PPOs, and they include medical and prescription drug coverage under one roof.  As well as the convenience factor, Medicare Advantage HMOs and PPOs typically have additional benefits and features that are not included with Original Medicare.  The primary downsides of having Medicare Advantage are: 1) the insurance company might have a limited provider network; and 2) you may need to contend with pre-authorization requirements not imposed by Original Medicare and Medicare Supplements.

Contact us if you are unsure which type of coverage is most suitable for you.

Click Here To Download the 2014 Choosing a Medigap Policy Guide

Until next time,

Andrew Herman, President
AH Insurance Services, Inc.