What is Medicare Supplement Insurance (Medigap)?

What is Medicare Supplement Insurance?

Medicare Supplement Insurance, also known as Medigap, is private health insurance that supplements Original Medicare (Part A and B). It helps pay about 20%¹ of the Medicare expenses that Original Medicare doesn't cover.

Do you need a Medicare Supplement (Medigap) plan if you have Original Medicare?

While Medicare covers many types of medical bills, there are still additional costs that may be left for you to pay. Medicare covers around 80% of health care costs. For large or ongoing medical bills, this can leave customers with more to pay on their own.

Medicare Supplement Insurance can help you pay for those additional costs that Original Medicare does not cover.

Insured by American Retirement Life Insurance Company, HealthSpring Insurance Company, HealthSpring National Health Insurance Company, Loyal American Life Insurance Company or Medco Containment Life Insurance Company.

What does Medicare Supplement Insurance not cover?

Medicare Supplement policies do not include:

• Prescription drug coverage
• Dental coverage

How does Medicare Supplement Insurance work with Original Medicare?

To purchase a Medigap policy, you must already be enrolled in both Original Medicare Part A and Part B. Medicare Supplement Insurance provides additional coverage to your Original Medicare benefits.

If you choose to buy a standalone Part D Prescription Drug plan, Medicare Supplement also works with those plans.

You should keep in mind that Medicare Supplement Insurance is different from Medicare Advantage. You can have either a Medicare Advantage Plan or a Medicare Supplement Plan, but not at the same time.

Are you eligible for Medicare Supplement Insurance?

If you are age 65 or older and enrolled in Original Medicare Part A and Part B, you may be eligible to apply for Medicare Supplement Insurance. Medicare Supplement plans are also available to you if you’re younger than age 65 and eligible for Medicare due to a disability.**

When can you enroll in Medicare Supplement plans?

You can apply for a Medicare Supplement plan at any time throughout the calendar year, but during your 6-month open enrollment period³, you can buy any policy offered in your state and you are guaranteed coverage even if you have pre-existing health conditions.

• If you are retiring at 65 and applying for Medicare Part B, your open enrollment period lasts for six months starting the first day your Part B coverage begins.
• If you are not retiring until later and still getting medical coverage under your employer’s insurance, then your open enrollment starts when you do retire and sign up for Part B coverage.

Want to learn more about Medicare Supplement Enrollment and Eligibility?

How many types of Medicare Supplement plans are there?

There are up to 10 Medicare Supplement Plans offered in each state. The different types of Medigap plans are named alphabetically, Plan A through Plan N.

(Remember that these plans are not the same as other parts of Medicare, which are also named alphabetically.)

The types of plans that are offered may differ depending on the state you live in, but no matter where you live, each policy is standardized and offers the same essential benefits.

Medicare Supplement plans range from minimal to extensive coverage. Understanding your health care needs as well as your financial situation can help when choosing a Medicare Supplement plan.

How much does Medicare Supplement Insurance cost?

When you purchase a Medigap policy, you’ll pay your insurance company a monthly premium. The cost of your Medicare Supplement premium will depend on which health insurance company, like HealthSpring, that you choose as well as the type of Medigap plan you select.

Remember that the core Medicare Supplement Plan benefits are the same no matter which insurer you choose (for example, Plan G with Company A is exactly the same as Plan G with Company B). You can and should shop and compare Medicare Supplement Insurance options to find the best fit for your health care needs and budget.