Is Medigap the same as Medicare supplement?
Medicare Supplement plans and Medigap are often used interchangeably to refer to the same type of health insurance policy. However, it’s important to note that “Medigap” is a term coined by the government to describe these types of plans, while “Medicare Supplement” is a more common term used by insurance companies and consumers.
Here’s a more detailed explanation:
Medicare: Medicare is a federal health insurance program primarily for people aged 65 and older, although it also covers some younger individuals with disabilities. It consists of several parts, including Part A (hospital insurance) and Part B (medical insurance).
Medicare Supplement (Medigap) Plans: These plans are private health insurance policies designed to work alongside Original Medicare (Part A and Part B). They are called “Medigap” because they fill in the gaps in coverage that Medicare doesn’t pay for, such as deductibles, copayments, and coinsurance. Medigap plans are standardized and regulated by the federal government, which means they must offer certain basic benefits. The standardized plans are labeled by letters (A, B, C, D, F, G, K, L, M, and N) in most states.
Here are some key points to consider:
Medigap policies are sold by private insurance companies and must follow federal and state laws designed to protect Medicare beneficiaries.
While the core benefits of Medigap plans are standardized across most states, some states may have different regulations or offer additional benefits.
Medigap plans generally do not cover prescription drugs. If you want prescription drug coverage, you’ll need to enroll in a standalone Medicare Part D prescription drug plan.
To enroll in a Medigap plan, you typically need to be enrolled in both Medicare Part A and Part B.
In summary, while “Medicare Supplement plans” and “Medigap” are terms used to describe the same type of insurance, “Medigap” is more of an official government term, while “Medicare Supplement” is commonly used in the insurance industry. These plans are intended to provide extra coverage and financial security for individuals who have Original Medicare and want to reduce their out-of-pocket healthcare costs.
