It's currently open enrollment for Medicare (October 15 - December 7), so we wanted to talk about Medicare and Medicare Supplement (Medigap) policies. You're probably familiar with Medicare, or perhaps are enrolled in it, but the same may not be true for Medigap. If you're considering retirement, approaching 65 years of age, or are currently enrolled in Medicare, you should keep on reading because I will be revealing some ways to save.
Who is eligible for Medicare?
Medicare is a federal health insurance program that covers people 65 years and older, certain young people with disabilities, and those with End-Stage Renal Disease. If you're receiving Social Security or Railroad Retirement Board benefits, once you turn age 65, you should automatically be enrolled in Medicare. In addition to being 65 or older, you also need to be an American citizen and permanent resident for 5 or more consecutive years.
If you're over 65 (or turning 65 in the next 3 months) and not already getting benefits from Social Security, you need to sign up to get Medicare Part A (Hospital Insurance) and Medicare Part B (Medical Insurance). You won't get Medicare automatically. There are three ways to sign up:
- Online at https://www.ssa.gov/benefits/medicare/
- In person at a local Social Security office, although the York office is currently closed due to COVID-19
- Call the national number at 1-800-772-1213 or the York office number at 1-888-329-5732
There are very important signup rules. Learn more here: https://www.medicare.gov/sign-up-change-plans/how-do-i-get-parts-a-b/part-a-part-b-sign-up-periods
What does Medicare cover?
Medicare comes in three parts: A, B, and D. Part A will cover hospital costs, including inpatient care, nursing facility care, hospice care, and home health care. Part B will cover medical costs from a doctor: services from doctors, medical equipment, outpatient care, and many preventative services. Part D is drug coverage and will help cover the cost of prescription drugs and recommended vaccines.
It's important to note that Original Medicare only includes Part A and Part B. Part D is something you can add on through a private insurance company. These drug coverages are run by private companies, but these companies must follow the rules set by Medicare. Another add-on that you can obtain through a private insurance company is Medicare Supplement Insurance, also known as Medigap.
So, What is Medigap?
Medigap is supplemental coverage that helps cover the cost of deductibles, co-payments, and other gaps. As mentioned before, this coverage is obtained through a private insurance company but each standard Medigap policy is required to offer the same basic benefits as it is standardized by Medicare.
Below is a chart from the Centers for Medicare & Medicaid Services and the National Association of Insurance Commissioners. It shows the basic benefits that Medigap policies cover.
What's next?
As you can see, there are a handful of Medigap policies available, and as with any policy you're considering, there are many options, variations, and coverages that play into your final decision. If you're approaching 65, you're probably getting bombarded with emails and letters from companies that offer Supplemental insurance policies. You seemingly have a million choices and we understand how overwhelming that can be.
With that said, we suggest talking with someone you know, who is local, and understands your needs so they can help you find the best option. At Keller-Brown Insurance Services, we would be happy to help you with this process and have the ability to set up virtual appointments for safety and ease.
We also strongly urge those that already have a Medigap policy to review it on a regular basis. As your health and wellness needs change, so will your needs for different levels of coverage. We can support you with existing policies as well. So as always, feel free to reach out to us!