Questions to Ask a Medigap Insurance Provider

Medicare is a federal health care system that was created to offer quality, affordable insurance for the elderly and disabled citizens of the United States. Medicare enrollees that opt to stick with traditional Medicare can purchase supplemental insurance called Medigap insurance. This pays for some of the extra costs associated with Medicare. Asking the right questions can help save a Medicare enrollee money in the long run.

When can I begin using my Medigap?

• Sometimes when you enroll in a Medigap plan, there may be a gap in coverage. Ask when your coverage will be effective so you can make the appropriate financial plans.

How much will the Medigap cost, and how is this cost determined?

• A lot of costs are associated with Medigap policies. Find out exactly what you will be getting yourself into financially. Ask about your monthly premium, and ask how that monthly premium is determined. Different Medigap companies determine the premium differently. Sometimes the premium is based on your health condition, your gender, your status as a smoker, your marriage status and other factors.

How much should I expect to pay as time goes on?

• Different Medigap companies calculate how to raise their Medigap in one of three different ways: community-rated, issue-age-rated and attained-age-rated. A community-rated premium is raised based on your area and inflation. Your age is not taken into account. An issue-age-rated premium is based on the age the beneficiary was when they first purchased the plan. An attained-age-rated premium will increase as the beneficiary ages.

When will my pre-existing conditions be covered?

• If you are currently in a period when you have the guaranteed right to purchase a Medigap, then your pre-existing conditions will be covered immediately. If you are not in this period, then the Medigap company might have you wait up to six months before it will cover any pre-existing conditions.

Does this Medigap have a crossover agreement with Medicare?

• A crossover agreement is when a Medigap plan automatically makes secondary payments for any traditional Medicare services that are covered under the plan. If the Medigap plan does not have a crossover agreement, you will want to find out what you need to do to have your services covered seamlessly.

How does leaving the Medigap work?

• You do not necessarily have the right to leave a Medigap at any time, and like a phone bill or insurance plan, you might be locked into coverage for a certain amount of time. Find out what your rights are to cancel the Medigap plan.