A Medigap Agency is a company that provides support for Medicare beneficiaries in comparing, choosing, and enrolling in Medicare supplement plans. These plans, which are offered by private insurance companies, fill in some of the gaps in Medicare coverage. The costs and benefits of different plans vary. There are 10 different Medigap policies, identified by letters: A, B, C, D, G, K, L, M, and N. Plan G, for example, is the most popular because it covers the Part B deductible.
A Medigap agency can help people research the different options available, as well as the prices and benefits of each. This agency can also provide assistance in completing the required paperwork. Additionally, the agency can help individuals understand their rights and protections. It is important for individuals to be aware of these laws because they can protect themselves from illegal insurance practices.
One of the most significant factors in choosing a Medigap policy is cost. Some states have specific rules regarding how much a Medigap policy can charge. Other states limit the amount a Medigap policy can increase by each year that someone is on the plan. Finally, other states have rules that limit the amount a Medigap agent can charge for his or her services.
Another consideration is whether an individual wants to buy a Medigap policy through a private insurance company or a government-sponsored program such as the Medicare Advantage Plan. Generally, an individual who is in a group retiree health plan from his or her employer will not need to purchase an individual Medicare supplemental policy. However, if the group plan does not offer the desired coverage or if there is the possibility that the company will go out of business, an individual may want to consider purchasing an individual Medigap policy.
If an individual wants to get a Medicare supplemental plan, it is important to do so during the initial enrollment period. This period begins three months before an individual turns 65 and ends the month after. During this time, the individual cannot be denied a Medigap policy because of pre-existing conditions.
An individual who is enrolled in a Medicare managed care plan for the first time and who disenrolls from the plan within 12 months can qualify for guaranteed issuance of any of the standard Medigap plans A, B, C, F, or G. In addition, the individual can select a Medicare supplemental policy of the same type and from the same insurer even after the 12-month period has expired.
People with lower incomes who have Medicare may qualify for the Specified Low-Income Medicare Beneficiary SLMB or Qualified Individual Program QI. If they do, these programs pay the individual’s Medicare Part B premium for them, eliminating their need to obtain an individual Medigap policy. The cost of the SLMB or QI plan is usually less than a typical Medicare supplemental policy. Nevertheless, people with higher incomes who do not qualify for these programs can still purchase Medigap policies.