Is Supplemental Medicare Insurance Necessary?

Supplemental Medicare coverage is known as Medigap. Medigap provides coverage that you do not have with the original Medicare coverage Part A and Part B. The Social Security Administration does not require anyone to enroll in Medigap; enrollment is a personal decision based on the coverage you already have and the coverage you would like to have.

Choosing Medigap

• Whether or not you need Medigap depends on your personal choice and the coverage you have. Even if Medigap adds coverage you do not have, if you think you do not need it or you do not want to pay for it, you can choose not to enroll. The only Medicare coverage that is not voluntary is Medicare Part A, which covers all workers who paid the Medicare tax throughout their careers. All other Medicare coverages, or supplemental coverage in this case, is optional, because it requires payment of monthly premiums.

Coverage Options

• One of the factors that might help you decide if you need Medigap insurance is how you plan your Medicare coverage. When you enroll in Medicare, you receive the original coverage: Part A, which is hospital insurance, and the optional Part B, which is medical insurance. You can then add different coverages to it that complement your Part A and Part B plans. If you add a Part C Advantage Plan to your coverage, you do not need to enroll in Medigap. In fact, you cannot enroll in Medigap if you have a Part C plan.

Medigap vs. Advantage Plans

• When choosing between Medigap and an Advantage Plan, look at your needs and see which plan offers you the best options. If Medigap offers you coverage you cannot find in a Part C plan, you probably should choose to enroll in Medigap instead of a Part C plan. If you have to pay higher premiums for Medigap and Part C offers you the same or better coverage according to your needs, you do not need to add Medigap to your policy. Keep in mind that a Part C plan usually brings prescription drug coverage with it, while you would need to purchase Part D prescription drug coverage for similar benefits with a Medigap policy.

Premiums

• If you choose to enroll in Medigap, do so during the open enrollment period. This period starts on the first day that you enrolled in Medicare Part B, as long as you are older than 65 years of age, and it lasts for six months. People with disabilities can enroll in Part B before 65 years of age. If you enroll during this period, you can choose any Medigap plan, no matter your health condition, for the same price people with good health pay. If you do not do so during this period and decide to enroll at later, the Medigap provider can charge you higher premiums or refuse to accept you.