While Original Medicare will cover most of what you need (80% after deductibles), there is a good chance they won’t cover everything. With Original Medicare, there are gaps that you can fill up with additional policies. For that reason, Corey Shader, founder and CEO of Insurance Pipeline, Inc., believes that supplemental insurance (also known as Medigap) could be advantageous for some Medicare beneficiaries.
When it comes to Medicare, it’s possible to ensure you have sufficient coverage by opting for Medicare Part A (hospital insurance), Part B (medical insurance), and Part D (prescription drugs). However, even if you end up using Medicare Part C (Medicare Advantage), you could still end up with holes in your coverage that you would rather not pay out of pocket for in the end.
As the name implies, Medigap coverage (also referred to as Medicare Supplement Insurance) will cover the gaps you have with Original Medicare. Because Medigap plans are standardized by the government, you can see any doctor that accepts Original Medicare and be guaranteed the same Grade-A coverage regardless of carrier. The only difference between carriers is the price in which they offer their plans, and this varies by state. Be mindful of getting the best price because the benefits do not vary!
Private companies (not the government) sell Medigap. In most cases, it helps cover expenses such as the following:
Additionally, some policies will cover your medical expenses if you travel outside of the United States. Corey Shader says it’s essential to note Medigap policies will rarely cover dental care, vision care, eyeglasses, hearing aids, or long-term care.
Important Details About Medigap
If it sounds like Medigap supplemental coverage would fit your needs well, there are still some important aspects of the policies you should analyze before moving forward. Even with knowing the information below, it’s best to speak with a knowledgeable agent, such as someone from Insurance Pipeline, Inc.
To be eligible for Medigap, you must be enrolled in Medicare Part A and Medicare Part B. It is not necessary to be enrolled in Medicare Part D, however. It’s also important to note that Medigap is different from a Medicare Advantage plan, also known as Medicare Part C.
Companies and Premiums
Make sure you find out what companies are licensed to sell. To do this, it is usually best to check in with a professional. For example, an agent licensed by Insurance Pipeline, Inc. So-called “Guaranteed Issue” are essentially those rights that are backed by law, whereby a certain insurance company must offer you Medigap policies (and these vary from situation to situation).
In addition to the premiums you pay to the government for your standard Medicare coverage, you will also pay the private company a monthly premium for your Medigap coverage. Your policy is guaranteed renewable, meaning even if you encounter health issues from one month or year to the next, the insurance company cannot cancel your policy as long as you continue to pay your premiums.
Is Medigap Right for You?
If you’re still unsure whether Medigap is a reasonable supplemental insurance option for you. As an insurance consultant, he can provide you with the details and context you need to decide which plan is best.
About Corey Shader
Corey Shader is a self-made entrepreneur, consultant, investor, real estate developer, and founder of several companies, notably Insurance Pipeline. Operating primarily out of Ft. Lauderdale, Corey’s endeavors span across the nation, consulting for start-ups, and sitting on the board of digital media and senior healthcare agencies. As a consultant, Corey helps young businesses develop sales funnels and maximize profitability. Shader takes pride in challenging others to push themselves to be their very best — he believes in constant self-improvement, inspiring others through sharing his own life experiences.