What is a Medigap or
Medicare Supplement Policy
A Michigan Medigap or Medicare Supplement policy is
health insurance designed to supplement the
original Medicare plan, that is, to help pay
some of the health care costs ("gaps") that
the original Medicare plan doesn't cover
(like copayments, coinsurance, and
deductibles). If you are in the original
Medicare plan and you buy a Michigan Medicare
supplement or medigap policy, then both
plans will pay their share of
Medicare-approved amounts for covered health
care costs. Medigap policies are sold by
private insurance companies. Also, Michigan
Medicare
insurance or a medigap policy isn't a
"Medicare Health Plan" (such as an HMO or
PPO) because it's not a way to get Medicare
benefits.
Insurance companies can only
sell you a "standardized" Medigap or Medicare
supplement policy. Standardized Medigap policies
are identified by letters (Medigap Plans A
through L). Medigap Plans F through J also offer a
high-deductible option. In some states, you may
be able to buy another type of Medigap policy
called Medicare Select. Each type of Medicare
Supplement or Medigap policy offers the same
basic benefits, no matter which insurance
company sells it. Usually the only difference
between Medigap policies sold by different
insurance companies is the cost.
Medicare
Supplement or Medigap policies must follow
Federal and State laws. These laws protect you.
The front of a Medigap policy must clearly
identify it as "Medicare Supplement Insurance."
Medicare Supplement or a Medigap policy only
covers one person. If you and your spouse both
want Medigap coverage, you each must buy
separate Medigap Policies.
Our existing clients receive a printout from the Medicare website every year
showing them the least expensive Medicare prescription plans (Medicare Part "D")
based on their medications, because the formularies and premiums change
annually. It is important for seniors who live off of limited incomes to stay in the lowest
cost plans. Americhoice provides this to our senior clients as a free service.
We provide the same report for those who are on a Medicare plan.
Our goal at Americhoice Insurance is to provide our senior clients with the lowest cost
Medigap (Medicare Supplement), Medicare Part "D" (Medicare Prescription Part "D")
and Medicare plans each year.
If you are looking for Medicare Supplement insurance, long term care insurance quotes,
or for a free report on the Medicare Prescription plans and Medicare plans
that best meet your needs, please fill out the appropriate form above and a representative
will contact you.
When is the best
time to buy a Michigan Medicare Supplement or Medigap
Policy?
The best time to buy a Michigan Medicare
supplement or Medigap policy is during your
aging enrollment period (ICEP - initial coverage
enrollment period).
This period lasts for six months and begins
three months prior to your birth month and
includes your birth month and three months after
your birth month. You must be enrolled in Parts
A and B.
During this period, an insurance company can't
-refuse to sell you any Medigap policy it
sells,
-make you wait for coverage to start, or
-charge you more for a Medigap policy
because of your health problems.
While the insurance company can't make you
wait for all your coverage to start, it may
be able to make you wait for coverage of
pre-existing condition. A pre-existing
condition is a health problem you have
before the date a new insurance policy
starts. In some cases, the Medicap insurance
company can refuse to cover that health
problem for up to six months. This is called
a "pre-existing condition waiting period."
(Remember, for Medicare-covered services,
the Original Medicare plan will still cover
the condition, even if the Medigap policy
won't cover your out-of-pocket costs.)
If you buy a Michigan Medicare supplement or Medigap
policy during your Medigap open enrollment
period or if you recently had certain kinds
of health coverage called "creditable
coverage," the insurance company must
shorten or eliminate any waiting period.
Creditable coverage is generally any other
health coverage you recently had before
applying for a Michigan Medicare supplement or Medigap policy. There are many types of
health care coverage that may count as
creditable coverage for Medigap policies. To
find out if your health coverage is
creditable coverage, call a Medigap
insurance company or your State Insurance
Department.
Important: Whether you had
creditable coverage depends on whether you had
any "breaks in coverage"- when you were without
any type of health coverage for more than 63
days in a row. Talk to your Medicare supplement
or Medigap insurance company or State Health
Insurance Assistance Program if you had any
breaks in coverage. They will be able to tell
you if the coverage will count towards your
creditable coverage.
If you buy a Michigan Medicare supplement or Medigap
policy when you have a guaranteed issue
right (also called "Medigap protections"),
the insurance company can't use a
pre-existing condition waiting period.
Note: You can send in your application for a
Michigan Medicare supplement or Medigap policy before
your Medigap open enrollment period starts. This
may be important if you currently have coverage
that will end when your turn ago 65. This will
allow you to have continuous coverage, without
any break.
