Medigap

Medigap plans are another way to cover some things that original Medicare does not. The “gap” part of the word recognizes that there are some holes in coverage that you need to plug. Prescription drugs are also not covered under Medicare, and they require separate coverage that can be one of several options.

How Medigap Plans Work

Medicare will pay for approximately 80% of your costs. There is coinsurance for things such as doctor’s office visits and hospital stays. For example, under Part B of Medicare, your coinsurance is 20% of physician charges and outpatient services. You can imagine how this can add up quickly. If you are hospitalized frequently in a given year, you could also expect significant charges, as you must pay a $1484 deductible.

Like any other type of coverage, Medigap policies have different types of coverage. The most popular Medigap plan was Plan F, but it can no longer be sold to new enrollees. The good news is that Plan G very closely duplicates it. In all, there are ten different types of Medigap coverages to consider. With all of these choices, you need a trusted advisor to help you navigate the waters.

The thing to remember is that you cannot have a Medigap and Medicare Advantage Plan at the same time. The only way that you can have a Medigap plan is if you pair it with original Medicare.

Medicare Prescription Drug Plans

Prescription drug coverage is a relatively new program, having just started in 2003. This is also known as Medicare Part D. You must separately enroll in Part D coverage, and it is a good idea to do so. Even if you do not think you need the coverage now, you will need it at some point.

Prescription drugs are extremely expensive, and their prices are going up far faster than inflation. Not only do you need Plan D coverage, but you need to consider the actual coverage that you purchase. Good coverage could keep you from paying an arm and a leg as your share of prescriptions. Not every Plan D offering on the market works for your specific situation.

This is why you need to speak with a trusted Medicare expert before you make your choice. Once you enroll in a plan, you are locked in until the next open enrollment, so consider your options wisely. This is where Your Medicare Partners help. We explain the options, so you can make the best choices.