Magical Medigap -

Magical Medigap

Medigap can make or break your finances in retirement.

Medigap is a supplemental insurance in addition to Medicare Part A and Part B. It is optional. Medigap covers co-pays, deductibles, and other costs that Medicare does not.  It bridges the “gap” in Medicare coverage.

Medicare covers on average 48 percent of your medical costs.  Medigap can pay some of the other 52 percent.

Without Medigap your health care costs can skyrocket.

Medigap plans are provided by private companies. You will pay a monthly premium in addition to your Medicare Part B payment.

You must be enrolled in Part A and Part B to qualify for Medigap.

Forms are first submitted to Medicare, which pays its portion to the provider. Claims are then sent to the Medigap company, which pays the remainder for covered services. Not all services are covered.

Dental, eyeglasses, hearing aids and other procedures may not be included.

Costs vary greatly depending on the company but are generally in the neighborhood of $125-$175 per month per person. This coverage is supplemented to make the policies more affordable.

If you are married, each spouse will need to buy his or her own policy. Medigap does not provide spousal coverage.

Medigap can only be provided by companies approved by Medicare. Not every insurance company qualifies.

You may work for a company whose policy is not approved and doesn’t work with the Medicare system. You can still use it instead of Medicare until you stop working but do not have to. You can transfer to Medicare once you reach age 65. Many do so because the coverage from Medicare is less expensive.

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