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Many people age 65 or older are eligible for Medicare coverage. Whether they have Medicare Part A or Part B another type of supplemental health insurance they should give consideration to is Medigap insurance coverage.
Medigap insurance is coverage that is defined by the federal government, but sold by third party insurers. Medigap insurance is broken down into several plans labeled Plan A through Plan N. The correct medicare forms to be used for this type of insurance can be found through the Social Security Administration, Medicare, or any approved Medigap insurer.
Of the Medigap insurance plans in place, the cost for each will vary by geographic region and unlike other health insurance policies that cover a spouse or loved one, each insured person must obtain and pay the premiums for a separate Medigap insurance policy. Medigap is supplemental coverage to Medicare, so to qualify to purchase this type of policy, the insured must first be enrolled in Medicare Part A or Part B.
A recent change to Medigap insurance involves prescription drug benefits. If you already have a Medigap policy that covers prescription drugs, you may keep it, but Medicare recommends that all Medigap drug policies be cancelled and switched for a Medicare Part D prescription drug plan. Most Medigap prescription drug plans are not creditable.
All new Medigap plans will no longer offer prescription drug coverage and insured people who have Medigap drug coverage and switch to Medicare Part D will have the Medigap drug coverage discontinued and their premiums adjusted to show that.
Medigap should be considered by all who are eligible because though Medicare offers good coverage for those over 65, it does not cover everything and could leave the patient with substantial bills to pay if an illness strikes.