There are 8 things your clients should know about Medicare Supplement (Medigap) policies:
- They must have Medicare Part A and Part B.
- If they have a Medicare Advantage Plan, they can apply for a Medigap policy, but make sure they can leave the Medicare Advantage Plan before their Medigap policy begins.
- They pay the private insurance company a monthly premium for their Medigap policy in addition to the monthly Part B premium that they pay to Medicare.
- A Medigap policy only covers one person. If he/she and his/her spouse both want Medigap coverage, they’ll each have to buy separate policies.
- They can buy a Medigap policy from any insurance company that’s licensed in their state to sell one.
- Any standardized Medigap policy is guaranteed renewable even if they have health problems. This means the insurance company can’t cancel their Medigap policy as long as they pay the premium.
- Some Medigap policies sold in the past cover prescription drugs, but Medigap policies sold after January 1, 2006 aren’t allowed to include prescription drug coverage. If they want prescription drug coverage, they can join a Medicare Prescription Drug Plan (Part D).
- It’s illegal for anyone to sell them a Medigap policy if they have a Medicare Medical Savings Account (MSA) Plan.