Medicare Supplement Insurance, (known as Medigap), is a private insurance that aims to reduce the risk of unexpected or overwhelming medical costs by paying some of the deductibles and copayments that Original Medicare requires you to pay.
The government has standardized Medigap policies that insurance companies can offer. All companies that sell Medigap policies identify these standardized benefit plans by the letters “A” through “N” (note: Plans E, H, I, and J have been discontinued). Each plan pays the deductibles and copayments for Original Medicare differently. If you enrolled in Original Medicare for the first time during or after the year 2020, the most comprehensive Medigap coverage you can get is Plan “G”.
Medigap limits exposure. A Medigap plan accomplishes its objective of limiting potentially unending liability under Original Medicare by paying some or most of your deductibles and copayments.
Medigap plan “G” currently covers all of your payment obligations under Original Medicare except for the Part B deductible (a fixed annual deductible). That deductible is $203 (2021) per year, so Medigap plan “G” would limit your financial liability exposure to $203 a year for all healthcare services covered by Original Medicare, no matter how many times you see the doctors or how many times you are in and out of the hospital.
If your Medigap plan “G” monthly premiums are current, you would no longer need to worry about how many copayments that healthcare providers would be allowed to bill under Original Medicare. If the care you received is covered by Original Medicare, your Medigap plan “G” will make up for any deficiency.
No. Unlike Medicare Advantage plans, a Medigap plan does not replace Original Medicare’s coverage. It works with Original Medicare. Medigap plans simply help to pay for some or all (depending upon which plan letter you choose) of the copayments that Original Medicare requires you to pay. Therefore, it does not change the healthcare delivery system that exists under Original Medicare, and you my see any doctors and go to any hospitals anywhere in the US that accept Medicare.
No. Medigap plans do not cover prescription drugs that you can take by yourself. If you want prescription drug coverage, you must enroll in a Medicare Part D plan, or ensure that you have continuing drug coverage from you, or your spouse’s, employer, or former employer. (Refer to Do I really need Part D if I have a Medigap plan?)
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