How to Choose a Medigap Plan

Medigap plans are supplemental insurance plans that are available to anyone on Medicare. They fill in the "gaps" in coverage that Medicare doesn't pay and, as such, can save you a great deal of money if you end up using your Medicare coverage extensively. There are a number of different plans to choose from, and each has its own set of benefits. Choosing a plan is a matter of deciding which benefits are most important to you and then selecting an insurance company as a provider.

Things You'll Need

• Contact information for state Department of Insurance
• Financial records
• Health records

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Instructions

• 1

  Contact your state's Department of Insurance for information on plans and prices in your state. The Medigap plans are standardized across most states, but each state has its own list of providers selling the plans. Your state's Department of Insurance should be able to provide you with a publication about Medicare supplemental insurance, either through the mail or online, that will show all of the options available to you.

• 2

  Familiarize yourself with the benefits offered by the plans. There are 11 Medigap plans available as of June 1, 2010: Plans A, B, C, D, F, high-deductible F, G, K, L, M and N. All plans offer the same basic benefits and all but Plan A provide one or more additional benefits. The other benefits that are available are skilled nursing co-insurance, Part A and Part B deductibles, Part B excess, which is the amount doctors can charge beyond what Medicare pays, and foreign travel emergency coverage.

• 3

  Determine how much coverage you will need from your Medigap policy. Choosing Plan A will provide you with only the basic benefits, which include the cost of 365 extra days of in-patient hospital care, the first three pints of blood each year, the 20 percent co-insurance under Part B, and hospice coverage. If you expect to be hospitalized at some point, having the part A deductible would be a useful benefit, and if you travel out of the country, where Medicare is not recognized, coverage for foreign travel emergencies could be important. Once you decide on which benefits are important to you, you can see which of the 11 plans best fits your needs.

• 4

  Evaluate your budget to determine how much you can afford to spend on monthly premiums. The more benefits you get, the higher the cost is likely to be. Be aware that, once you have made a choice and purchased a plan, it may not be possible for you to increase your coverage. Given that, it is advisable to purchase the most coverage you can afford when you are first eligible for Medicare.

• 5

  Select a provider that offers the coverage you need at a cost that fits your budget. It is important to know that all of the companies must provide exactly the same coverage for each plan. Providers can and do, however, charge different monthly premiums for the plans. You can choose either the lowest cost provider or go with a company you are familiar with. The most important thing is to be comfortable with your choice.