Medigap: Your Retirement Health Planning, part 1

As you approach retirement, navigating the complexities of Medicare can feel as foreign as learning a new language.

Medigap policies are designed to help fill the “gaps” in your health insurance coverage, including deductibles, copayments, and coinsurance that Medicare doesn’t cover. But choosing the right Medigap policy isn’t a one-size-fits-all decision. Before you enroll, here are some key factors to consider:

— Timing is Everything: The best time to buy a Medigap policy is during your Medigap Open Enrollment Period. This six-month window begins the first month you have Medicare Part B and are age 65 or older. During this time, insurance companies cannot deny you coverage or charge you more due to pre-existing health conditions. If you miss this window, you might face higher premiums or even be denied coverage later.

— Understanding the “Alphabet Soup”: Medigap policies are standardized, meaning a Plan G from one insurer offers the same benefits as a Plan G from another. In most states, these plans are identified by letters (A, B, D, G, K, L, M, N). Plans C and F are no longer available to new Medicare beneficiaries as of January 2020, but if you were eligible for Medicare before that date, you may still enroll in or keep these plans. Each lettered plan offers a different combination of benefits, so it’s essential to compare them based on what you need to cover. For example, Plan G is very popular because it covers nearly all out-of-pocket costs except the Part B deductible.

Also, remember that Medigap does NOT cover prescription drugs (that’s Medicare Part D), long-term care, vision, dental, or hearing aids. You’ll need separate coverage for these.

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