Supplement Basic Medicare Coverage Parts A & B

How to Analyze Medigap Supplemental Insurance Options

Dec 3, 2008 Felicia A. Williams

Medigap is a supplemental medicare insurance. Unlike Medicare Parts A and B, Medigap is sold through private insurance companies.

While Medigap coverages are standardized and must follow the requirements as set forth by the Federal and State government, they are not purchased through the government.

The Purpose of Medigap Insurance

Medigap is designed to pick up the expenses that Medicare doesn't pay and the individual would have to pay out of pocket. For example, Medicare Coverage A pays the first 60 days of hospitalization costs incurred subject to a calendar deductible. Medigap would pick put he deductible expense or out of pocket patient co-pays for doctor visits.

Types of Medigap Policies

Medigap comes in 12 different plan options labeled A through L. While an insurance company is not required to sell all 12 plans, the insurance coverages offered for each policy must meet the government standards. Therefore, a Level A Medigap insurance policy purchased from the ABC insurance company will offer the exact same coverages as a Level A policy purchased from the XYZ insurance company.

Keep in mind that although the coverages are exactly the same, the premiums will vary. The variance in premium depends largely upon geographic location.

Each Medigap plan offers some basic benefits that are exactly the same throughout all 12 polices such as paying coinsurance and all costs after hospital benefits are exhausted under Medicare Part A and Medicare preventive care Part B coinsurance. However, as the letters of the plan increase, the broader the coverages offered by each plan.

For example, Medigap Plan A is the most basic of the 12 plans. Plan B includes the coverages offered in plan A plus a few additional coverages. Plan C includes all coverages offered in Plan B plus a few more benefits. The pattern continues in a similar pattern up until Plan J. There are a few exceptions, so be sure to review the specifics of each plan.

Plans letter K and L differs from the other plans in that they offer to pay a percentage of the covered expenses rather than 100%.

Where to Purchase Medigap Insurance

Since insurance companies can select which plans they wish to offer their customers, it is important for consumers to do a little shopping before contacting the insurance company. Consumers should define which plans best meets the insurance needs and then seek an insurance company that offers the appropriate plan.

For a detailed comparison of the various Medigap plans and information on how to purchase coverage, download the 2009 Choosing a Medigap Policy booklet as offered by the Centers for Medicare & Medicaid Services.

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