Are Medigap Plans Based on Income?

Medical bills can be frightening when you receive a reciept and find that Medicare doesn’t cover everything.

Part A and B of Medicare have some items that do not qualify under their coverage.

What is Medigap?

Medicare Supplement Insurance is also known as Medigap. When you have this type of supplement insurance in conjunction with Medicare, it covers the “gaps”. Hence its name. If you’re already covered by Medicare Parts A and B, you are potentially qualified for Medigap Insurance.

Medigap is made and created by private insurance carriers. It is also federally regulated. Rest assured that your plan is legitimate!

What does it cost? Can I afford it?

Since Medigap isn’t a sole company and can be purchased from a private insurance carrier, there is no way to determine the exact cost of your plan. The cost of Medigap policies can vary widely. There may be different prices in premiums for some of the same coverages, depending on the company.

However, when you look into Medigap insurance, you can inquire about the following to help with seeing just what a policy will cost you.

  1. Does the company offer discounts? Consider things such as discounts for women, non-smokers, or people who are married. Usually Medigap policies are priced per person. You can also inquire if there are discounts for paying yearly or discounts for paying your premiums using electronic funds transfer. If you go in armed with these questions, your agent will be able to give you the best deal and information about your Medigap plan.
  2. Is there a discount based on provider? Like a medical insurance “in-network” and “out of network” cost, you may want to see if there is a discounted plan for using only approved providers.
  3. Do they charged based on age? Some Medigap providers may have an “age-related entry” price. The younger you are, the cheaper the Medigap premium, which won’t then inflate because of age. Some Medigap prices do increase the older you get. It’s best to inquire before committing to a plan.

    If you’re able, be sure to talk to a licensed Medigap agent to learn more about what plan works best for you and decrease your out-of-pocket expenses!