Medicare Supplements: Enrollment and Eligibility
To qualify for a Medicare Supplement plan, the individual must be enrolled in Original Medicare. You should enroll during the six-month Medigap Open Enrollment Period. During this period, an applicant has a guaranteed-issue right to enroll in any Medicare Supplement plan obtainable in their area. With a guaranteed issue, an enrollee will not be rejected coverage based on preexisting health issues.
Medicare Supplement Plan Costs
Medicare Supplements are standardized and lettered A through N. Each plan offers the same basic coverage without regard to the private insurer administering it. However, they can set different premiums. Insurers can set their premium rates based on the following:
- Community no-age-rated: These Medicare Supplement insurance policies set premiums that are identical throughout, irrespective of age.
- Issue-age-rated: These Medigap policies set their premiums based on the recipient’s age when they initially joined the plan. Hence, the younger a recipient is when they enrolled, the lower their premium will be in this kind of policy.
- Attained-age-rated: Like issue-age-rated, these policies set premiums based on the beneficiary’s age when they first purchased the policy. However, unlike issue-age-rated, premiums rise as the beneficiary ages.
No matter the rating approach, premiums may rise over time due to reasons unrelated to age, e.g., inflation.
Must-know Information About Medicare Supplements
- The applicant must have Original Medicare (Part A and Part B)
- A Medigap plan is not the same as a Medicare Advantage Plan. A Medigap plan enhances your basic Medicare provisions.
- The insurer receives a monthly premium from the patient for their Medigap policy. This premium is paid with the monthly Part B premium paid to Medicare.
- A Medigap plan covers a single person. If the patient and their partner wish to have Medigap benefits, they’d have to purchase separate Medigap plans.
- An individual can purchase a Medigap plan from any insurance provider authorized to vend one in their area.
- All standard Medicare Supplement policy is guaranteed renewable, even if the recipient has health issues. This means that the insurer cannot terminate a Supplement plan as long as the recipient pays premiums.
- It’s unlawful to sell Medicare Supplements to anyone unless they are returning to Original Medicare.
