AARP Hearing Center
Key takeaways
- Limit out-of-pocket medical costs with Medigap, as explained by Medicare expert Tricia Sandiego.
- Secure the best rates by comparing Medigap options within six months of enrolling in Part B.
- Enjoy standardized coverage and peace of mind, no matter which insurer you choose for Medigap.
Summary
Medicare Medigap plans, also known as Medicare Supplemental Insurance, help cover out-of-pocket expenses like deductibles, copayments and coinsurance that original Medicare doesn’t pay. Medicare expert Tricia Sandiego explains that while Medigap is optional, it can offer peace of mind and greater financial security for those who want to limit unexpected medical costs. Policies are sold by private insurers and standardized by the federal government, so you’ll know exactly what’s covered in each plan, no matter which company you choose.
If you’re considering a Medigap plan, it’s important to compare your options early —especially within six months of enrolling in Medicare Part B — to secure the best rates and coverage. Though premiums vary, many people find Medigap worth the investment for its robust coverage of medical bills that would otherwise add up. To learn more and compare plans, visit trusted resources like aarp.org/medicare or Medicare.gov.
The key takeaways and summary were created with the assistance of generative AI. An AARP editor reviewed and refined the content for accuracy and clarity.
Full Transcript:
[00:00:00] Alright, so you’ve got original Medicare, known as Medicare. You can also have something called Medigap.
[00:00:06] How do these work together? Medicare Supplemental Insurance, or Medigap, is additional insurance to
[00:00:12] cover out-of-pocket medical expenses, but not everyone needs or wants it. More like meta confusing.
[00:00:19] Am I right? Jokes aside, I’m Tricia Sandiego. It’s my job at AARP to help people understand the programs within Medicare.
[00:00:27] Today, I’ll explain Medigap plans and what they offer. Before we begin, Medigap only works in concert to cover out-of-pocket medical
[00:00:37] expenses not covered by Medicare. If you have Medicare Advantage, an alternative to Medicare offered
[00:00:44] by private insurance companies, Medigap is not available, so you can stop watching this video.
[00:00:50] Moving on. Back to Medigap. Anyone enrolled in Medicare can buy Medigap. It’s completely optional, but it’s certainly worth looking into.
[00:00:59] And here’s why. Even though Medicare covers many medical expenses, you may still
[00:01:05] encounter out-of-pocket costs. Medigap helps with expenses like deductibles,
[00:01:11] copayments and coinsurance. But what are these things exactly? Well, a deductible is the amount of money you pay for covered
[00:01:19] expenses before Medicare kicks in. A copayment is a fixed fee for services, like $25 for a doctor visit, for instance.
[00:01:28] And coinsurance is a percentage you pay for a given service, often around 20%,
[00:01:34] for things like outpatient procedures. So who provides these Medigap policies? Well, they are sold by private companies, but regulated by federal and state
[00:01:43] governments, and you’ll have to pay a premium to your chosen Medigap plan in addition to your Medicare premiums.
[00:01:50] Medigap premiums can vary per state, but can be up to around $2,600 a year.
[00:01:56] Let’s take a look at what Medigap policies offer. Most plans cover the 20% Part B, coinsurance for doctor visits
[00:02:04] and other outpatient services I mentioned a few moments ago. Most plans also cover the Part A deductible. That’s for hospital stays.
[00:02:14] Medigap policies can also cover things like blood transfusions, hospital stays
[00:02:19] that stretch beyond Medicare limits, and even some costs related to skilled nursing facilities and emergencies abroad.
[00:02:27] OK, so now let’s talk about plans. You know how Medicare loves their letters, right?
[00:02:35] Well, so does Medigap. These plans are standardized, meaning that the federal government, not the
[00:02:40] insurance company, determines coverage. And in most states, they’re designated by letters from A to
[00:02:47] N. But these aren’t sequential, for some reason. Each letter represents a standardized plan.
[00:02:53] Some cover more things than others. For you Medicare superstars, there’s a helpful chart on Medicare.gov that explains it all.
[00:03:02] So is Medigap worth it? Medigap premiums can be pricey, and they don'’ cover everything,
[00:03:08] but if you want or need that extra coverage, it may make sense for you. You can purchase a Medigap policy anytime, once you’re enrolled in Medicare parts A
[00:03:19] and B. Just remember, you’ll get the best rates and coverage options if you buy
[00:03:24] a plan within 6 months of signing up for Medicare Part B. So try to do that.
[00:03:31] There are so many things to understand before making your choices, but I hope I was able to help make it a little more clear.
[00:03:38] Our team at AARP is always working on keeping you up to date with the most current information.
[00:03:44] You can find it at aarp.org/medicare. And of course, you can find
[00:03:49] lots of helpful info at Medicare.gov. To stay informed on the latest health care updates and more from AARP, please
[00:03:57] subscribe to our YouTube channel.
