Do You Need to Buy Supplemental Medicare Insurance?

Medigap is another type of health insurance coverage offered through normal Medicare coverage. As with most parts of Medicare, enrollment in Medigap is voluntary, and its necessary features depend on the Medicare coverage you choose. Medigap works as a supplement or additional coverage to Medicare Part A and Medicare Part B.

Choosing Coverage

• Although you are not required to enroll in Medigap, the Medicare handbook "Medicare and You" suggests some instances in which you should add Medigap to your coverage. To enroll in other parts of Medicare, you are required to first have Medicare Part A. Part A provides hospital insurance. Once you have Part A, you can add Part B, which is medical insurance. These two parts together are called original Medicare. After this point, you can choose the coverage you want to add. You can add a prescription drug plan, which would be Medicare Part D, and then add Medigap to complete your coverage. You can also choose to add an advantage plan provided by a private company (Part C) instead of Medigap. If you have one, you do not need the other.

Medigap

• Medigap is very similar to Part C plans in that it is also additional coverage to Medicare Part A and Part B, which is provided by private companies. However, Medgap and a Part C plan work in different ways. A Medigap policy covers the gaps that Part A and Part B do not cover, such as helping you to pay for healthcare costs like copayments, coinsurance and deductibles. Some Medigap policies also provide additional coverage not included in Medicare Part A and Part B, such as medical care when you travel outside the U.S. If you have Medicare and Medigap, Medicare pays first and then Medigap pays its share.

Choosing Medigap

• Whether you need to buy Medigap or not depends on your personal decision. If you do not have a Part C plan, you probably need some extra coverage to Part A and Part B, and you should add Medigap. As for choosing Medigap or Part C, you need to consider the relation between the premiums you have to pay and the coverage you receive. If you need specific coverage that is provided by Part C but not by Medigap, you need to add Medigap. If you purchase a Part C plan, you cannot buy Medigap. Another thing you can consider is that many Part C plans include prescription drug coverage, while Medigap does not. The premiums you pay in Medigap, as well as in Part C, depend on the plan and the coverage you choose.

Medigap Enrollment

• You are eligible to buy Medigap starting from the first day you are enrolled in Medicare Part B, and you have up to six months after this day to enroll. During this period, you can choose the best plan for you with the best prices. After this period, companies are not required to accept you if you have a precondition, and if they do accept you, they can charge you higher premiums because of the condition.