Original Medicare covers a significant percentage of your costs for medical procedures, hospitalization, and supplies. However, Original Medicare, Part A and Part B, doesn’t cover everything. Consequently, if you are a Medicare beneficiary, you may be considering a Medicare Supplement.
A Medicare Supplement plan, which is also referred to as Medigap, is made available through private insurers. These plans pay for some of the medical and hospital charges that are not covered by Original Medicare, including deductibles, coinsurance, and copayments.
In essence, Medicare Supplement plans help fill the reimbursement gaps that are left after Original Medicare, Part A and Part B, has already paid its portion of Medicare’s allowable charges. Some Medigap plans even cover several services that Original Medicare does not pay for. In addition, a couple of Medigap plans have an annual out-of-pocket limit that can help further minimize the financial impact of your healthcare.
To be eligible for a Medicare Supplement policy, you must already be an Original Medicare beneficiary. Also, you must maintain your enrollment in Original Medicare for the duration of your Medigap coverage.
In some states, you are only eligible for a Medicare Supplement plan if you are at least 65 years of age or older, even if you qualify for Original Medicare because of a disability or end-stage renal disease. However, in Hawaii, that is not the case; Medigap coverage is available for Original Medicare beneficiaries before their 65th birthday
Here are a few additional points that apply to Medicare Supplement plans: